Ethylbenzene (EB) is made typically by the catalytic alkylation of benzene with ethylene.
EB is used in the production of styrene monomer (SM). However, in North America, it is mostly a captive market, leaving little for the merchant market. The key drivers of this market come from its two major feedstocks, ethylene and benzene.
Many market participants have said they are unsure what direction EB will head in the second quarter of 2012 because of the economic uncertainty, but some expect feedstock benzene demand to pick up in March and April as refinery build stockpiles ahead of the summer driving season. Sources have also noted that price movement in the second quarter could be more tied to higher crude prices compared with benzene supply/demand.
Styrene demand is also expected to improve early in the second quarter of 2012, on seasonal fundamentals.
ICIS has a price quote for US Gulf EB, which is calculated using an industry-based formula.