The Northwest European styrene premium over its two main feedstocks, ethylene and benzene, has declined in October, according to market sources on the sidelines of the EPCA annual meeting in Budapest Monday.
Styrene fundamentals have been lackluster in Europe in September, leading to softer prices against its feedstocks, according to sources.
Indeed, the October styrene contract price was fully settled at Eur985/mt ($1,107/mt), down Eur50/mt. The benzene contract price was fully settled at Eur597/mt, down Eur30, while the ethylene contract price was fully settled at Eur940/mt, up Eur40/mt.
Using an industry-estimated formula of 0.79 benzene and 0.29 ethylene to produce ethylbenzene, the precursor of styrene, this points to a 2.5% fall in feedstock costs. The styrene premium over its feedstocks can be calculated at Eur241/mt, declining 11% from September.
On the spot market, the styrene premium over benzene hit a two-month low on Thursday of $252/mt.
The spot price sank to a fresh seven-month low last week and was assessed at $920/mt FOB ARA Wednesday.
One source said that he expected the premium to “decline further” through the year.