US spot styrene prices remain flat, market tight

David Love

27-May-2016

HOUSTON (ICIS)–US spot styrene prices remained flat for the second week in a row, despite still tight supply, market participants said on Friday.

Spot supplies will be tight until at least the end of June, when a major turnaround in Canada is scheduled to be completed.

A Gulf coast styrene producer continues to operate its plant below capacity according to market sources, but exact details are unclear.

After a spot deal was done late last week at 45.35 cents/lb, nothing was heard to have traded for any time period this week. Doable prices for June shipments were still heard around 45.35 cents/lb at the end of the week.

One producer said that even forward trade and discussion is thin, with nothing heard to have traded or discussed for July or August time periods.

Between Europe and Asia, Europe has been the destination of choice for most US spot exporters the last few months as prices there have been more favourable than Asia.

Some upward movement in European styrene spot pricing this week has confused the market, with many anticipating lower prices in June, market sources said. However, it remains to be seen whether the current uptrend is sustainable or simply a short term development.

Domestic styrene demand is described as good, driven by end use markets such as styrene butadiene rubber (SBR), unsaturated polyester resin (UPR) and paints and coatings. Many end use markets have benefitted from the strong building and construction industries.

North American styrene producers include Americas Styrenics, INEOS Styrolution, LyondellBasell Chemical, Pemex, Shell Chemicals Canada, Total Petrochemicals and Westlake Styrene.

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