The US styrene-benzene spread narrowed as it remained below $200/mt, assessed at $161.07/mt Tuesday, down $19.52 on the week, according to Platts data.
The spread has been below $200/mt for the majority of November, assessed above $200/mt only on November 13 at $204.04/mt, according to Platts data. The spread narrowed to as low as $135.09/mt on November 3, a 14-month low.
The US spot styrene assessment was at 38.50 cents/lb ($848.77/mt) FOB US Gulf Coast on Tuesday, stable from Monday, amid tight spot supply and stable front-month pricing in Europe. December styrene in Europe was assessed at $905/mt FOB Amsterdam-Rotterdam-Antwerp.
The arbitrage to Europe was more attractive on paper compared with the arbitrage to Asia, according to Platts data.
US spot benzene was assessed at $2.30/gal ($687.70/mt) FOB USG, down 2 cents from Monday on weaker sentiment.
US spot styrene prices have been mostly rangebound at 38-39.5 cents/lb FOB USG in November as supply has been limited and the arbitrage to Asia has been open for most of the month, sources said.
US spot benzene prices have been more volatile in a range from $2.19-$2.36/gal FOB USG in November due to higher crude and tighter supply.
Benzene makes up as much as 80% of styrene, while ethylene makes up 20-30% of styrene.
The styrene-ethylene spread has been over $300/mt for most of the last nine months, based on Platts data. Ethylene spot prices were assessed at 21.50 cents/lb FD USG on Tuesday.
Due to the cheaper feedstock prices, variable costs for styrene were estimated at 31-35 cents/lb, according to Platts data.
Based on variable costs, margins on US spot styrene deals could be as high as 3-7 cents/lb, down from as high as 18 cents/lb in May, sources said.
