Early US September styrene contracts down slightly with benzene

HOUSTON (ICIS)–Early US September styrene contracts have settled this month at declines of 1.50 cents/lb ($33/tonne) from August, following the weaker feedstock benzene market, sources said today.

The early US September settlements come a week after US August contracts were fully settled at an average decline of 3 cents/lb, which took prices to 81.75-85.75 cents/lb FOB (free on board).

North American styrene suppliers did not announce any contract price increases for September. The lack of September contract 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 contracts still.

Styrolution said on Thursday that it 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 was 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.

Additional September styrene contracts are expected to emerge in early October after the October benzene contract is settled.