European styrene prices are expected to come under downward pressure for the rest of the month and into June on creeping length in the market, sources said this week.
Fundamentals are seen easing in late May and June when two European plants restart production from planned turnarounds.
Shell's Moerdijk POSM-1 unit is expected to restart by June, according to sources. Shell declined to comment on when the plant will start producing styrene.
Trinseo's Bohlen unit in east Germany is expected to resume production this month.
A source said earlier this week that prices had been lower than his initial expectations for H1 May given the ongoing planned maintenance works at the two plants.
Buyers were well prepared for the maintenance works and had good inventory levels, which meant that there was no urgency to buy, he said.
The NWE styrene spot price has eased from $1,104/mt at the end of April to be assessed at $1,071.50/mt FOB ARA Wednesday.
Several sources said this week that the styrene market had been very quiet, with no trades heard.
In addition, sources cited additional volumes arriving on European shores from the US in June which will ease fundamentals.
The styrene market structure was heard in backwardation on Thursday.
Outstanding bid-offer ranges for May and June were heard at $1,075-1,095/mt and $1,060-1,080/mt respectively on Thursday.
