The US styrene-benzene spread widened by $15.42/mt week on week to an assessment at $407.61/mt on Monday.
The spread had fallen below $400/mt on April 26 when it was $380.23/mt but rebounded over the remainder April and into May, according to S&P Global Platts data. It bounced back over $400/mt on May 3 at $404.15/mt before peaking at $417.70/mt May 5.
The spread was over $400/mt for most of March and April. It peaked at $456.88/mt on March 15, after falling to $380.11/mt on March 7.
A spread at $200/mt or higher is considered healthy, sources have said.
The US spot styrene assessment was at 45.75 cents/lb ($1,008.60/mt) FOB US Gulf Coast Monday, down 0.50 cent/lb from Friday, tracking lower global spot pricing. The arbitrage to Europe has become the more attractive netback compared to Asia, sources said.
US spot benzene was assessed at $2.01/gal ($600.99/mt) FOB USG Monday, down 4 cents/gal from Friday on lower crude.
US styrene spot prices have been tracking the arbitrage to either Asia or Europe since November, sources said.
US spot benzene prices have been mostly lower since the start of April due to oversupply, sources said. Benzene makes up 70%-80% of styrene, while ethylene makes up between 20%-30% of styrene.
The styrene-ethylene spread has been over $300/mt for most of the last 17 months, based on Platts data.
Ethylene spot prices were assessed at 25.25 cents/lb FD USG Monday.
Due to the cheaper feedstock prices, variable costs for styrene were estimated at 30-32 cents/lb, according to Platts data. Based on variable costs, margins on US spot styrene deals could be at least 10 cents/lb, sources said.
