US spot benzene-styrene spread narrows

HOUSTON (ICIS)–The spread between US spot styrene and upstream US spot benzene prices narrowed as values for the aromatic continue to climb, ICIS analysis showed on Monday.

The spread between the two products for the week ended 22 July was 12.84 cents/lb ($283/tonne), compared with 14.13 cents/lb the prior week.

The spread has not been below 13 cents/lb since late January, as climbing styrene prices had kept the spread wide.

Styrene prices had been supported by strong demand for US styrene exports alternately in Asia and in Europe. However, prices have fallen in recent weeks as export demand has eased.

Styrene spot prices moved lower for the week ended 22 July amid limited export opportunities and lower prices in the Asian and European markets.

Meanwhile, benzene spot prices early in the year had held range-bound at a relatively low level, contributing to the wide spread.

US benzene imports during Q1 had been at high levels, leading to record inventory levels at the end of that quarter. Turnarounds in downstream markets during Q2 had slowed the absorption of the extra inventory.

However, with downstream plants restarted and import levels much lower in Q2, benzene supply has been tightening in recent weeks and prices have been rising. Benzene spot prices continued to rise for the week ended 22 July.