US August styrene contracts down on weaker benzene

HOUSTON (ICIS)–US August styrene contracts were fully settled this week at an average decline of 3 cents/lb ($66/tonne) from July, on the back of weaker feedstock benzene pricing and thin demand.

The decline, which took prices to 81.75-85.75 cents/lb, was in line with initial settlements from 2-4 cents/lb.

The overall decline in August styrene contracts has been attributed to the 22 cent/gal decline in the August feedstock benzene contract. Styrene producers opted not to seek a price increase for August, as benzene prices came down on the back of improving supply.

Looking ahead, suppliers have not announced any contract price increases for September. The lack of September styrene price hikes also came as the September benzene contract settled down by 37 cents/gal from August.

Demand for US styrene had been thin from Asia, where downstream demand has been lacklustre, despite its peak season for demand.

However, many US suppliers are also looking at current or expected reduced rates, which could impact September styrene contracts still.

Styrolution is still set to take down its Bayport, Texas, styrene unit for planned maintenance at the end of September. Restart of the Bayport unit is currently planned for early November.

Westlake Chemical’s styrene plant in Lake Charles, Louisiana, remains down due to economic conditions within the styrene and ethylene markets. The company said last month that with ethylene prices strong it has stopped producing styrene and will instead look to bring ethylene back into the market.

Westlake said that it is fulfilling customer obligations for styrene and it expects the Lake Charles plant to be back online within 30 days, or when ethylene prices come back down.

The Lake Charles plant has a styrene capacity of 259,000 tonnes/year.

Americas Styrenics remains on a styrene force majeure at its St James, Louisiana facility. The St James facility has a combined styrene capacity of 950,000 tonnes/year.

Americas Styrenics sent a letter to customers on 22 July announcing that effective 1 August until further notice, it is declaring force majeure for all styrene sales, because of reduced feedstock ethylene supply and a force majeure from a critical supplier.