The Northwest European January styrene contract price is expected to increase on a monthly basis in line with higher feedstock costs.
Both benzene and ethylene contract prices are anticipated to increase and this will feed into a higher styrene contract price, sources said Thursday.
The benzene contract price is set for a sharp monthly increase, based on the spot trades concluded between December 22 and 29.
January trades were concluded between $830-845/mt (one private and confidential deal was reported at $850/mt), with the average trade calculated at around $837/mt or Eur791/mt.
The ethylene contract price is also anticipated to see a sharp increase. S&P Global Platts ethylene contract price indicator was calculated at Eur993.50/mt on Thursday. The December settlement was at Eur940/mt.
Taking an industry estimated formula of 0.79 benzene and 0.29 ethylene to produce ethylbenzene, a precursor of styrene, costs for January can be estimated at around Eur920/mt, approximately Eur150/mt above December.
Styrene spot prices in Europe have also been on an upward trend following a production problem at LyondellBasell/Covestro's propylene oxide styrene monomer unit in late November. Covestro's force majeure was also in place for the first half of December which placed upward pressure on styrene spot prices.
The styrene spot price was last assessed Thursday at $1,169/mt FOB ARA, up from $1,130/mt on November 30.
Global fundamentals in the styrene market are expected to remain tight in January with a heavy turnaround season in Asia and the US which will likely support January contract and spot prices, according to sources.
