"With Europe near $1,325/mt, the US price would have to be near 58 cents," a source said Monday. "But there's really nothing left out there to sell." Freight to Europe was being estimated at $45/mt.
A deal was reported done late last week at 55 cents/lb FOB USG. At the time, the focus in the US was on filling a potential arb to Asia or Latin America. The European styrene market, though, opened the week as much as $50/mt (2.27 cents/lb) higher, a source said. And Asian prices started the
week lower, making Europe the more likely target for exports.
"With the problems Total is having [in Europe], the price is running up," the source said. Sources in Europe noted the impact of strikes by refinery workers in France, halting production at the country's refineries and hampering styrene production at Total's styrene monomer site, although the
company was not immediately available to confirm this.
Spot benzene in the US have climbed above 340 cents/gal, putting variable costs for styrene production in the US near 51 cents/lb. Producers will generally add 3 to 5 cents to cover fixed costs and margins, creating a notional range between 54 and 56 cents/lb. However the current tight supply --and strong demand from Europe -- would allow producers to capture wider margins, a source said.
October product in the US was essentially sold out, though, sources said. And November supplies were tight as Ineos prepared to shut its Texas City, Texas, styrene unit for a planned turnaround.
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