US spot styrene rose 0.55 cent/lb ($12.12/mt) to 74.25 cents/lb ($1,636.91/mt) FOB US Gulf Coast on Monday for its highest assessment in three months as it tracked gains elsewhere in the world.
The assessment was the highest since March 6, when spot styrene was assessed at 74.80 cents/lb FOB USG, according to Platts data.
US styrene has risen 2 cents over the last week on supply tightness as well as higher prices in Asia and Europe. Sources said producers do not have any product until second half of July and the product there is left to sell is in the hands of traders.
Asian styrene jumped $39.50/mt day on day to be assessed Monday at $1,718/mt FOB Korea and $1,747/mt CFR China. Both of the FOB Korea and CFR China assessments have climbed $52/mt over the last week.
European styrene was assessed $11.50/mt higher day on day Monday at $1,727/mt FOB Amsterdam-Rotterdam-Antwerp. European styrene has risen $46/mt over the past week.
Arbitrage windows to Europe and China were both open, sources said, with Europe seen as the better option because of the better netback.
With European styrene for June assessed at $1,730/mt FOB ARA Monday and freight at $50/mt, US styrene would need to be less than 76.20 cents/lb FOB USG for the arbitrage to work, according to Platts data.
For July, US styrene would need to be less than 75.90 cents/lb FOB USG for the arbitrage to work with European styrene for July assessed at $1,723/mt FOB ARA Monday and freight at $50/mt, according to Platts data. It typically takes up to four weeks to ship product to Europe, sources said.
In comparison, in order to work the arbitrage to China, US styrene would need to be less than 75.30 cents/lb FOB USG, given Chinese styrene for first half of August was assessed at $1,740/mt CFR China Monday and freight of $80/mt, according to Platts data. It typically takes between six to eight weeks to ship product to China, sources said.
