Houston (Platts)–26 Oct 2015 605 pm EDT/2205 GMT
The US styrene-benzene spread narrowed $24.97/mt on the week but remained above $200/mt, assessed Monday at $212.43/mt, Platts data showed.
The spread has been above $200/mt since October 12 after being below $200/mt for the week prior, dropping to a 13-month low at $177.89/mt on October 8, according to Platts data.
The US spot styrene assessment was at 38.75 cents/lb ($854.28/mt) FOB US Gulf Coast Monday, down a half-cent from Friday, as the market was talked lower, sources said.
US spot benzene was assessed at $2.15/gal ($642.85/mt) FOB USG Monday, up 5 cents/gal from Friday on increased buying downstream.
US spot styrene prices have higher over the last month, assessed at 37 cents/lb FOB USG October 2-7, before climbing to 39.25 cents/lb FOB USG over the last week, tracking the rise in global styrene spot prices. The arbitrage to Asia has been workable during the month, but spot US supply has been limited, sources said.
US spot benzene prices have been in a $2.09-$2.19/gal range for the last three weeks, based on Platts data.
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 nearly nine months, based on Platts data.
Ethylene spot prices were assessed at 24.50 cents/lb FD USG Monday.
Due to the cheaper feedstock prices, variable costs for styrene were estimated at 31-33 cents/lb, according to Platts data.
Based on variable costs, margins on US spot styrene deals could be as high as 4-7 cents/lb, down from as high as 18 cents in May, sources said.
