04 February 2014 19:50 [Source: ICIS news]
HOUSTON (ICIS)--Initial US January styrene contract settlements have emerged at increases of 4-5 cents/lb ($88-110/tonne) coming on the back of stronger feedstock benzene costs and globally tight supply, according to market participants on Tuesday.
The increases come after record high benzene spot prices seen in January, and reduced production at Styrolution’s Texas City styrene facility in Texas and Shell Chemicals’ styrene force majeure at its facility in Alberta, Canada.
Although Styrolution brought its Texas City styrene plant back on line in late January, Shell Chemicals remains on force majeure for styrene.
The initial increases were also in line with market expectations, after producers came out with January price increase nominations of up to 5 cents/lb.
Current December styrene contract prices are at 80.25-84.25 cents/lb FOB (free on board).
Additional settlements are expected to emerge later in the week.
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