LONDON (ICIS)--After limited spot trading activity since the start of the week, the European styrene market has seen a flurry of deals since late Wednesday amid some extreme tightness for prompt delivery, sources said on Thursday.
With bids and offers for March stuck around a range of $1,350-1,450/tonne FOB for most of the week, the wide buy/sell spread kept deals limited. However, a prompt deal was reported this morning at $1,400/tonne, and offers quickly soared higher to $1,550/tonne.
“It’s crazy, but I really don’t think that there are the physical barrels to meet demand,” said one trader. “I have never seen the market this tight in more than 10 years trading styrene.”
The second half of April traded at $1,300/tonne and $1,310/tonne this morning, and there was talk of deals done late yesterday at $1,280/tonne and $1,290/tonne. However, some of the current month tightness looks set to carry into April
“It will be interesting to see where the contract number for April settles,” said one distribution market source. “We saw a similar flurry last year pre-shutdowns.”