The Northwest European spot benzene-styrene monomer spread has hit a two-month high as different supply outlooks for the two products pushed prices in opposite directions.
The spread was assessed at $411/mt Tuesday, the highest since December 15 when it was $416.50/mt, according to Platts data.
“I suspect benzene is not as bullish as styrene because of the length in the market,” one source said. “With little else supporting benzene, we are just seeing it fluctuate with crude.”
The same source also expected the spread to widen in coming weeks as turnarounds in Northwest Europe would limit the amount of styrene monomer available for the spot market.
However, another source said: “It is slightly harder to find styrene, but there is material around. What is more important is how much material downstream demand will absorb and that will determinate the supply outlook in the coming weeks.”
NWE benzene spot prices were assessed at $604/mt CIF ARA Tuesday, down $19.50/mt day on day. Meanwhile, styrene prices were assessed at $1,015/mt FOB ARA, up $17.50/mt.
– Platts.com
