US benzene-styrene spread narrows as both climb

HOUSTON (ICIS)–The spread between US spot styrene and upstream US spot benzene narrowed slightly as prices for both products moved higher, ICIS analysis showed on Monday.

US spot styrene was valued at 18.22 cents/lb over US spot benzene for the week ended 29 April, compared to 18.66 cents/lb the prior week. The average spread for April was narrower than for March.

Benzene-Styrene average spread (cents/lb)

Styrene prices had been climbing since early 2016 on strong demand for US exports in Asia. That climb faltered in early April as demand in the Asian market eased. However, styrene prices again started climbing on demand for US exports in Europe and continued climbing for the week ended 29 April.

Benzene prices moved lower in early April, amid record inventory levels at the end of the first quarter and downstream turnarounds during April. However, stronger upstream markets and stronger demand in the week ended 29 April moved benzene prices higher.

While the spot values of both products increased, the gain for benzene was slightly more than for styrene.