European styrene traders are looking to work the import arbitrage from the US, according to industry sources Monday.
The European styrene monomer spot price for June was assessed at $1,040/mt, while the May price in the US was assessed Friday at 44.45 cents/lb ($979.50/mt), down 1.15 cents/lb or $25.50/mt on the day, opening an import arbitrage window.
"Traders are working on [the arbitrage] right now," a trader based in Europe said Monday.
It is the first time the arbitrage window was open since end of March, according to S&P Global Platts data.
Sources previously said that both structural and spot volumes were fixed from the US to Europe for delivery in May.
Bearish sentiment in Asia amid relatively high inventory levels in China meant that European 5-30 day spot price inched above the CFR China marker price.
The 5-30 day styrene spot price was assessed at $1,027/mt FOB ARA Monday, while the CFR China marker price was assessed at $1,025/mt.
There was a suggestion that the arbitrage window may be short-lived.
"[Europe] cannot stay above Asia," the first trader source said.
