Market and product

The Northwest European styrene monomer spot price fell $21.50/mt on Tuesday as fundamentals eased, erasing nearly half of the gains seen so far this month.

Platts assessed the styrene spot price, which had gained $48/mt over April 1-25, down $21.50/mt to $1,086.50/mt FOB ARA Tuesday -- the largest daily fall since March 31.

The fall in Europe reflected weak sentiment globally in the styrene market.

Earlier in the day on Tuesday, the Asia price dipped $11/mt to $1,074/mt CFR China, while the USG price declined 0.5 cents/lb ($11/mt) to 46 cents/lb ($1,014/mt) FOB USG Tuesday later in the day. On Wednesday, the CFR China price was steady.

The drop in prices in Europe was due to expectations that product availability will rise.

In terms of European production, maintenance works at Shell's Dutch Moerdijk POSM-1 unit and Trinseo's German Bohlen unit are expected to finish in the next few weeks.

A source said that he expected Shell to begin testing product as early as the end of this week.

Imports arriving in June will also contribute to better supply.

A second source said that he expected US product to arrive in June.

The styrene market between May and June dates was heard pegged at a $5-30/mt backwardation by sources, and Platts assessed it at $15/mt on Tuesday.

The fall in the styrene spot price comes in the week before the contract price is settled.

In the feedstock market, the benzene spot price was assessed at $674/mt CIF ARA Tuesday, falling modestly by $1.50/mt on the day. The ethylene spot price was assessed at Eur888/mt FD NWE Tuesday, steady on the day.

Styrene monomer uses a feedtock ratio of 0.79 benzene and 0.29 ethylene in the ethyl-benzene production process.