The Northwest European styene spot price reached $1,125/mt on Monday, the highest since September 1, on continued production problems.
The styrene spot price was assessed at $1,125/mt FOB ARA Monday, rising $43/mt on the day — the largest daily change since mid-March.
The price surge followed production problems for Total in France and planned maintenance works elsewhere in Europe.
Total declared force majeure on its styrene unit at Gonfreville, France last week.
A source said he had received notification from Total regarding the force majeure due to the on-going labor strike and a technical problem. He said last Friday the unit was in the process of restarting.
But there was no news Monday of the restart, and Total declined to comment on the status of the plant.
Other petrochemical operations were also heard affected by the strike in France.
On Monday, the Naphtachimie steam cracker in Lavera, southern France, declared force majeure on ethylene production.
The force majeure was confirmed by an official at Kem One, which buys supplies from the cracker.
The disruptions coincided with maintenance at other plants across the continent.
Shell’s POSM-1 unit at Moerdijk, the Netherlands, remains on turnaround. A source from the company said Monday the turnaround at one of its plants at the site “is expected to be completed second half of May.”
Trinseo’s styrene unit is also in maintenance.
The drop in styrene supply was met by high buying interest on Monday.
Sources said there was strong buying interest in the market from one market player, contributing to the large day-on-day price surge.
A source said he was uncertain if high prices will be maintained or if the jump was a “short term” event.
He added Monday the direction of the June styrene contract price negotiations will change, depending on how styrene prices will trend for the rest of the week.
The June contract price is expected to settle on June 1.
