The US styrene to benzene spread remained above $300/mt for much of the last week, with the spread at $303.66/mt Monday, according to Platts data.
US spot styrene lowered 0.05 cent/lb ($1.10/mt) day on day to a Monday assessment at 72.50 cents/lb ($1,598.33/mt) FOB US Gulf Coast, tracking lower feedstock benzene.
US spot benzene fell 2 cents/gal ($5.98/mt) day on day to an assessment Monday at $4.33/gal ($1,294.67/mt) FOB USG.
After falling to its lowest level in three months on May 3 at $224.94, the spread climbed for the rest of May, reaching a peak at $313.11/mt May 24, according to Platts data.
US spot styrene fell 1.25 cents/lb over the last two weeks since being assessed at 73.75 cents/lb FOB USG May 22. Sources said demand in the market has weakened because of closed arbitrage windows to Europe and Asia as well as tight spot supply.
US spot benzene was steady in May due to long supply.
The wider the styrene to benzene spread, with styrene more than benzene, the more profitable it is to produce styrene, industry sources said.
Styrene consists of about 70-80% benzene and 30% ethylene, according to industry sources. Spot ethylene was assessed at 54 cents/lb ($1,190.48/mt) FD USG Monday.
Based on feedstock ethylene and benzene prices, US producers could see as much as a 5-9 cent/lb margin on spot deals, according to Platts data. For minimum feedstock prices, variable costs were estimated near 63.47 cents/lb, while for maximum feedstock prices, variable costs were estimated at 66.50 cents/lb, according to Platts data Monday.
