EU styrene imports up again in June 2014 – Eurostat

LONDON (ICIS)–Imports of styrene into the EU from other regions in June 2014 more than doubled compared to the same month last year, according to data released by Eurostat last week.

This continues a trend seen in May 2014, when monthly imports reached 71,000 tonnes, also up by more than double compared to the same month in 2013.

However, March and April 2014 saw yearly decreases in styrene imports compared to the same months in 2013, as European pricing and sentiment remained bearish overall.

Some expected bullishness in Asia due to turnarounds at the time also saw export volumes from the US diverted east, although the general trend in Asia has been similar to that of Europe throughout 2014 so far.

With no real upturn seen in the Asia region and no clear signals for any recovery in the styrenics market, this makes Europe a more attractive destination for US exports despite the lack of any healthy arbitrage out of the US gulf into Europe at present.

The styrene market in Europe has seen a shift towards structural imports this year following sharp spot pricing volatility seen in 2013.

However, the lacklustre performance of downstream markets has kept supply ample throughout 2014, despite the unexpected restrictions brought about by the Moerdijk explosion in early June this year.

Perhaps tellingly, there was little impact on import volumes evidenced in the aftermath of the explosion, which were in fact down by around 7,000 tonnes, while exports out of the EU were slightly up both compared to the previous month as well as the same month in 2013.

Looking ahead, some styrene production outages in the US linked to benzene shutdowns in September means that there will be less export material being shipped to Europe under contract.

Eurostat import/export data is subject to revision as more detailed information becomes available.