05 July 2013 10:36 [Source: ICIS news]
LONDON (ICIS)--The European July styrene customer reference price (CRP) has fallen by €4/tonne to €1,416/tonne ($1,839/tonne), the seller involved and a buyer said on Friday.
The decrease in the CRP followed a similar trend in the July styrene barge contract price.
The buyer involved said it was not happy with the reduction because it did not reflect the €67/tonne reduction in the upstream benzene July contract price.
"[We're] not happy as they've [producers] hung on to most of the benzene, but we'll get it back soon," the buyer said.
Styrene spot bids and offers have been climbing through the week, reaching $1,700-1,765/tonne FOB (free on board) Rotterdam on Thursday evening because of tight supply.
Low availability has been the result of several factors coming together. Production rates using the propylene oxide-styrene monomer (POSM) production route have been cut back.
Coupled with this, customer inventory levels are low. Traders are short of product and industry buying interest has been increasing.
The styrene CRP was agreed on a free carrier (FCA) Rotterdam basis.
($1 = €0.77)
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