The US styrene-benzene spread widened on the week, but remained just shy of $400/mt, assessed at $399/mt Monday, up $34.43/mt from February 16, according to Platts data.
Platts did not assess on February 15, the week-ago date, due to the Presidents Day holiday.
The spread Monday was at its widest since August 24, when it was at $447.13/mt and has been above $200/mt since December 29, according to Platts data. After starting the year at $223.39/mt, the spread has been widening since. The spread at $200/mt or higher is considered healthy, sources have said.
The spread rose above $300/mt on January 29 for the first time since August 27 and has not been above $400 since August 24, based on Platts data.
The US spot styrene assessment was at a six-month high at 42.85 cents/lb ($944.67/mt) FOB US Gulf Coast Monday, up 1.10 cents/lb from Friday, tracking higher Asian spot styrene prices, sources said. The arbitrage to Asia was attractive, but spot supply was limited through May, sources said.
US spot benzene was assessed at $1.825/gal ($545.67/mt) FOB USG Monday, up 3 cents/gal from Friday on stronger crude.
US styrene spot prices have been tracking the arbitrage to Asia since November, sources said.
US spot benzene prices have been tracking crude prices of late, sources said.
Benzene makes up 70%-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 10 months, based on Platts data.
Ethylene spot prices were assessed at 20 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 at least 8-10 cents/lb, sources said.
