The US styrene-benzene spread widened on the week as it started the year above the $200/mt level, assessed at $223.39/mt Monday, up $37.48/mt on the week, according to Platts data.
The spread was at a three-week high and had been above $200/mt since December 29, according to Platts data. After being below $200/mt for all but one day in November and for the first 10 days of December, the spread has been over $200/mt for most of the last four weeks, based on Platts data. The spread at $200/mt or higher is considered healthy for styrene production, per market feedback
The US spot styrene assessment was at 38.75 cents/lb ($854.28/mt) FOB US Gulf Coast Monday, up 0.15 cent from Thursday, on tight supply and tracking higher Asian styrene spot prices. The arbitrage to Europe and Asia was workable on paper, according to Platts data.
US spot benzene was assessed at $2.11/gal ($630.89/mt) FOB USG Monday, down 2 cents/gal from Thursday on weaker crude.
US styrene spot prices were mostly rangebound between 37-39.5 cents/lb FOB USG in November and December and to start January as supply has been limited and the arbitrage to Europe has been open for most of the last two months, sources said.
US spot benzene prices had been more volatile in a range from $2.03-$2.14/gal FOB USG over the last three weeks, tracking crude movement. Benzene makes up as much as 80% of styrene, while ethylene makes up between 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 19 cents/lb FD USG Monday.
Due to the cheaper feedstock prices, variable costs for styrene were estimated at 30-33 cents/lb, according to Platts data.
Based on variable costs, margins on US spot styrene deals could be as high as 5-9 cents/lb, sources said.
