The US styrene-benzene spread widened on the week to a five-month high, assessed at $312.62/mt Monday, up $58.57/mt on the week, according to Platts data.
The spread was at its widest since August 26, when it was at $374.83/mt and has 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 widening to start the year, based on Platts data. The spread at $200/mt or higher is considered healthy, sources said.
The spread rose above $300/mt on Friday for the first time since August 27, based on Platts data.
The US spot styrene assessment was at 39 cents/lb ($859.79/mt) FOB US Gulf Coast Monday, down 0.25 cent/lb from Friday, tracking lower Asian styrene spot prices. The arbitrage to Asia was attractive, but spot supply was limited through March, sources said.
US spot benzene was assessed at $1.83/gal ($547.17/mt) FOB USG Monday, down 5 cents/gal from Friday on weaker crude.
US styrene spot prices have been tracking the arbitrage to Asia since November, sources said.
US spot benzene prices have been falling to start the new year tracking lower crude prices, sources said.
Benzene makes up 70-80% 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 10 months, based on Platts data.
Ethylene spot prices were assessed at 18 cents/lb FD USG Monday.
Due to the cheaper feedstock prices, variable costs for styrene were estimated at 26.5-29 cents/lb, according to Platts data.
Based on variable costs, margins on US spot styrene deals could be as high as 8-10 cents/lb, sources said.
