London — Styrene exports are anticipated in the coming weeks from the EU to Asia amid an open arbitrage, according to market sources this week.
The export arbitrage has been open from the EU to Asia this month.
The prompt FOB ARA July price was assessed Tuesday at $1,262/mt FOB ARA, while the CFR China H1 and H2 September prices were assessed at $1,368/mt.
Freight costs were pegged around $90/mt by a trader Wednesday, pointing to an open arbitrage.
The exact quantities are not known, but a second trader source estimated volumes of around 5,000-10,000 mt from ports in the Mediterranean and the Amsterdam-Rotterdam-Antwerp hub could be exported.
Shipping reports also noted export interest for styrene.
The EU-Asia trade route is a new route which has emerged this year in light of antidumping duties on Chinese styrene imports from the US, Taiwan and South Korea.
The duties meant that Chinese buyers have increasingly looked for alternative sources of supply.
Earlier in the year, European sources said that the EU-Asia trade route for styrene was possible, although there were some challenges to exporting large volumes.
Infrastructure availability and inventory management were noted as potential difficulties.
–Yuriko Kato, [email protected]
–Edited by Maurice Geller, [email protected]
Source: S&P Global Platts
