HOUSTON (ICIS)--US January styrene contracts have settled at increases of 4 cents/lb ($88/tonne) on average, coming on the back of tight supply and high benzene costs, according to market participants on Friday.
The increase took January styrene contract settlements up to 84.25-88.25 cents/lb FOB (free on board), which were in line with initial increases of 4-5 cents/lb a week earlier.
Suppliers had come out with January price increase nominations of up to 5 cents/lb.
It was the second consecutive month that styrene contracts have increased on stronger feedstock costs and tight supply.
Suppliers have already come out with another round of increases of up to 4 cents/lb for February contracts, because of strong feedstock benzene prices from back in January.
Styrene contract buyers have said the market would likely see an increase because of the record high benzene prices from January, but that a full increase of 4 cents/lb would likely not go through.
North American styrene producers include Styrolution, Total, Americas Styrenics, Shell Canada and Westlake.