The European styrene premium over feedstocks fell 9% on the month in December to Eur279/mt ($332/mt), as the sharp increase in costs outpaced the rise in styrene, according to S&P Global Platts data.
The styrene December contract price was fully settled at Eur1,255/mt Friday, up Eur95/mt on the month. Despite a large increase in the contract settlement, its premium over feedstocks declined due to a faster rise in costs.
The December benzene contract price was fully settled at $1,002/mt or Eur847/mt, up $187/mt or Eur145/mt. The ethylene contract price was fully settled at Eur1,057/mt, up Eur32/mt on the month.
Taking an industry estimated 0.79 units of benzene and 0.29 of ethylene to produce one unit of ethylbenzene, a precursor of styrene, costs were calculated at Eur976/mt.
In the benzene market, strong export demand in the prompt market due to tightness in the US market led to the contract price exceeding the $1,000/mt mark, the first time since February 2017.
Rising crude oil and naphtha prices also supported the price increase in benzene.
