The US styrene market was seeing little direct impact Friday from the UK vote to leave the European Union or Brexit, sources said.
US styrene was assessed Thursday at 42.75 cents/lb ($943/mt) FOB US Gulf Coast for June and July and was being talked in a range from $930/mt to $970/mt (42.2-44 cents/lb) Friday morning, with freight between US and Asia heard in a $60s to $70/mt range, at least $10/mt lower than where it was previously talked. Sources said the US market continued to track the arbitrage to Asia.
Asian styrene was assessed at $1,013/mt CFR China and $993/mt FOB South Korea Friday, both down $12/mt from Thursday, following the Brexit ruling that sent upstream oil markets lower.
The US styrene market has seen a tightness in spot supplies of late as sellers have sold product months in advance to lock in margins, sources said, adding that export demand has slowed over the last month.
The US is a net exporter of styrene, tracking the arbitrage to Europe for the latter part of the first quarter and most of the second quarter this year, sources have said.
However, participants in the US have shifted their attention to Asia in the last couple of weeks as the arbitrage to Asia has been more attractive, sources have said.
