The European styrene spot price reached a fresh 17-month high on Wednesday despite a slowing Asia market ahead of the Chinese New Year, according to S&P Global Platts data.
The styrene 5-30 days forward spot price was assessed at $1,299.50/mt FOB ARA Wednesday, the highest level since mid-August 2015. The February price breached the $1,300/mt mark and was assessed at $1,305/mt on Wednesday as high bids pushed up the price.
Market sources said that buy activity in Asia was cooling off ahead of the Lunar New Year holiday at the end of January, with the January market largely absent in Europe as well.
East China inventory levels have been increasing ahead of the holiday and were registered at 64,100 mt on Wednesday, rising 18,400 mt on the week.
As the European market was "not short" product, an arbitrage was expected to open between Europe and Asia, allowing for any exports to be fixed with Asia for delivery after the New Year break.
Turnarounds in Asia in February-March were expected to spur buy interest for European product from Asia.
Instead, the European spot price saw a $20.50/mt daily hike on Wednesday amid minor production issues at LyondellBasell/Covestro's propylene oxide styrene monomer unit in Maasvlakte in the Netherlands.
A company spokesman from Covestro confirmed that the plant was running despite earlier issues.
The upstream benzene market also saw a surge in prices Wednesday on the back of production issues and depleted stocks, according to sources. The production issue was reported to be in the Netherlands, although Platts could not obtain confirmation.
The benzene spot price soared $46/mt on the day to $992/mt CIF ARA, the highest level in 26 months.
