European styrene prices have plummeted this week as confidence in supply availability for May returned to the market. However, the backwardation between April and May remained steep as availability for prompt dates remained tight, according to sources.
The five-to-30-day forward styrene spot price was assessed at $1,398/mt FOB ARA Thursday, down $26.50/mt day on day. However, since reaching a one-month high of $1,477/mt on April 13, the price has fallen 5.35% or $79/mt.
On Thursday, April and May were assessed at $1,445/mt and $1,351/mt respectively, for a $94/mt backwardation between the two months.
Industry sources have become increasingly confident about supplies for the coming weeks and May declined over the past two days.
A normalization of supplies globally is seen as supportive of a decline in prices. Total restarted its Gonfreville styrene unit on Monday, with issues elsewhere in Europe expected to be resolved by May.
With the April styrene spot price in the US assessed at 58.05 cents/lb ($1,279.50/mt) on Wednesday, Europe's import arbitrage is wide open, allowing traders to work the arbitrage.
Nevertheless, a source said Thursday that availability for prompt dates remained tight, which had kept the backwardation steep.
