The price spread between styrene monomer and its main feedstock benzene was pegged at $391.50/mt Thursday morning, its widest point in more than four years, as SM remains firm after an unexpected shutdown by South Korean producer Lotte Chemical earlier this week, Platts data shows.
SM was pegged down $1/mt day on day to $1,670.50/mt FOB Korea Thursday, while benzene was pegged down $2/mt to $1,279/mt FOB Korea over the same period.
The Asian SM-benzene spread was assessed at $390.50/mt Wednesday, as SM rose $5.50/mt from Tuesday to $1,671.50/mt FOB Korea and benzene slipped $5/mt over the same period to $1,281/mt FOB Korea.
The last the time the spread was wider was April 2, 2009, when it was $394.50/mt -- with SM assessed at $960/mt FOB Korea and benzene at $565.50/mt FOB Korea.
Lotte Chemical on Monday shut its 560,000 mt/year SM plant at Daesan due to unknown technical problems. The shutdown is expected to last around 10 days and cut production by about 15,000-20,000 mt, a company source said earlier.
Cancellation and delays of contract cargoes to customers forced spot prices higher in an already relatively tight Asian market following a heavy turnaround season in the first half of this year.
Asian benzene prices had been rangebound since early June at about $1,273-$1,288.50/mt FOB Korea. The reduced benzene supply in Asia, resulting from the various turnarounds of aromatics plants from mid-April to June, balanced the weaker demand from the US and China.
