US spot styrene rose 0.90 cent/lb ($19.84/mt) day on day to a Monday assessment at 75 cents/lb ($1,653.45/mt) FOB US Gulf Coast, tracking higher European styrene prices. US spot styrene was heard around the same levels Tuesday.
US spot benzene fell 2 cents/gal ($5.98/mt) day on day to an assessment Monday at $4.11/gal ($1,228.89/mt) FOB USG. A July benzene bid-offer range was heard Tuesday at $4.08-4.20/gal FOB USG.
After falling to its lowest level in three months on May 3 at $224.94/mt, the spread has been widening since.
The styrene-benzene spread is at its highest level since November 17, 2008, when it was at $527.79/mt, according to Platts data.
US spot styrene has climbed 2.35 cents/lb since being assessed at 72.65 cents/lb FOB USG on June 27, tracking the higher European styrene levels. Two styrene deals were done Monday at 74.50 cents/lb FOB USG -- one for August for 3,000 mt and one for September for 2,000 mt. Spot supply continued to be described as tight, especially for prompt, sources said.
US spot benzene has been fairly stable over the last week because of weak demand and excess 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 57.50 cents/lb ($1,267.64/mt) FD USG Monday.
Based on feedstock ethylene and benzene prices, US producers were likely seeing double-digit margins on spot deals, according to Platts data. For minimum feedstock prices, variable costs were estimated near 59.90 cents/lb, while for maximum feedstock prices, variable costs were estimated at 63.90 cents/lb, according to Platts data Monday.