The European styrene premium over its two main feedstocks -- benzene and ethylene -- is at a two-month low as falls in the styrene price outpaced declines in feedstock prices, S&P Global Platts data showed.
The European styrene spot price was assessed Friday at $1,155/mt FOB ARA, falling $365/mt since March 1 or 24%.
The benzene price was assessed at $764/mt CIF ARA Friday, down $208/mt or 21% and the ethylene price was assessed at Eur1,110/mt ($1,202/mt) FD NWE or down $9.50/mt or 1% during the same period.
The styrene premium over feedstock costs can be calculated at $201/mt, based on an industry estimated formula of 0.79 mt of benzene and 0.29 mt of ethylene to produce 1 mt of styrene.
This is the lowest level since January 24.
Tumbling styrene prices in Europe tracked similar sharp falls in Asia and the US.
Fundamentals eased in Europe last week as Trinseo restarted its Terneuzen styrene unit in the Netherlands.
Sources previously said that the market in Europe was lengthening and incremental volumes were heard fixed to the Americas.
In the contract market for styrene, its premium over feedstocks widened by 24% on the month to Eur605/mt as the March styrene contract price increased Eur90/mt, despite a fall in feedstock costs by 2.5%.
In April, expectations for the styrene contract price are bearish, with market participants agreeing that the settlement will fall by over Eur200/mt.
Feedstock costs are also expected to plummet in April, with last trades for April heard at $765/mt, over $200/mt lower than the March contract price settlement of $992/mt.
Platts ethylene contract price indicator was calculated at Eur1,044.50/mt on Monday, pointing to a fall from the April settle of Eur1,050/mt.
