Expectations for the European May styrene contract price have been revised again following strength in the spot market, according to market sources.
At the beginning of April, market sources anticipated a large fall in the May styrene contract price.
Sources said that the April styrene contract price was settled higher than expected and therefore would be countered with a sizable decrease in May, around Eur50-100/mt (about $60.90-$121.80/mt).
However, mixed expectations were heard in the past week as high crude oil prices were anticipated to push benzene prices higher, but stronger crude had limited effect on feedstock benzene, and expectations for the benzene contract price were seen bearish in the current week.
Another bullish factor for styrene emerged as styrene spot prices strengthened, leading to further revisions in expectations for the May contract price.
S&P Global Platts assessed May spot at $1,351/mt FOB ARA from Thursday to Tuesday. May was also heard traded Wednesday as high as $1,450/mt amid tightness for the first half of May.
As a result, the fall in the styrene CP is currently expected to be smaller than initial expectations, with sources saying they now anticipate a fall in the range of Eur30-50/mt.
The April styrene contract price was fully settled at Eur1,325/mt ($1,614/mt).
The May trade at $1,450/mt (Eur1,191/mt) on Wednesday was calculated at a 10% discount to the April contract.
The May contract price is expected to be settled on May 2.
