The US styrene-benzene spread narrowed to $302.31/mt Tuesday, down $5.98/mt from Monday and down $43.45/mt on the week, according to S&P Global Platts data.
The week-on-week decline came after the spread was at a one-month high of $345.76/mt July 5, according to Platts data.
The spread pulled in as spot benzene pricing rose on the week, while styrene spot prices dropped. A spread at $200/mt or higher is considered healthy, sources have said.
The US spot styrene assessment was at 44.50 cents/lb ($981.04/mt) FOB US Gulf Coast Tuesday, flat on the day and down 0.75 cent/lb on the week, tracking Asia styrene spot movement. The arbitrage to China has been open for much of the last month, so the US market has been following movement in that region, sources said.
US spot benzene was assessed at $2.27/gal ($678.73/mt) FOB USG Tuesday, up 2 cents/gal from Monday and 9 cents/gal on the week, tracking crude prices and reflecting the impact of lower imports, 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 18 months, based on Platts data.
Ethylene spot prices were assessed at 26.50 cents/lb FD USG Tuesday.
Due to the cheaper feedstock prices, variable costs for styrene were estimated at 32.8-35.3 cents/lb, according to Platts data. Based on variable costs, margins on US spot styrene deals have remained healthy, sources have said.
