Seller margins for European styrene producers increased 29% on the month in February after a surge in the styrene contract price, according to S&P Global Platts data.
The styrene contract price was fully settled Wednesday at Eur1,560/mt ($1,684/mt), surging Eur260 or 20% on the month.
Feedstock costs on the other hand increased 16% on the month.
The benzene contract price was fully settled at Eur983/mt, up Eur177, and the ethylene contract price was fully settled at Eur1,020/mt, up Eur35.
Taking an industry estimated formula of 0.79 benzene and 0.29 ethylene to producer ethyl-benzene, a precursor of styrene, feedstock costs increased 16% to Eur1,072/mt.
Styrene's premium over its feedstocks rose 29% to Eur488/mt.
The global styrene market is expected to face acute tightness in February due to turnarounds.
In Europe, Trinseo's Terneuzen unit in the Netherlands is to go on maintenance, while several units in Asia and the US will be down.
News from the US that the restart of Americas Styrenics' 950,000 mt/year unit in Louisiana will be delayed until mid-March sent spot prices soaring in the US.
The US Gulf price hit a 27-month high on Tuesday and was assessed at 67.15 cents/lb ($1,480/mt).
The CFR China marker price in Asia also hit its highest since October 2014 and was assessed Wednesday at $1,490/mt.
The European price was assessed Tuesday at $1,450.50/mt FOB ARA and, in a reversal of fortunes, are now the lowest of the three regions.
