Spot styrene costs move South in Asia and Europe

Spot styrene prices saw decreases both in Asia and in Europe, while the amount of decrease is larger in Europe given the weaker derivative demand and lower naphtha prices in that region, as per ChemOrbis. In Asia, too, players report muted PS demand but the rather limited styrene availability stemming from some production issues caused the decrease in that region to be relatively smaller when compared to Europe. Looking at overall spot market prices, styrene prices retreated by US$25/ton on FOB South Korea basis and they lost US$210/ton on FOB NWE basis with respect to the beginning of September. Players in Europe point to increasing supply levels amidst weak derivative demand for the lower spot styrene prices. Spot benzene prices, which lost US$35/ton on CIF NWE basis since early September and US$50/ton softer naphtha prices also pulled down styrene prices in the region. PS producers are not pronouncing hopeful views when considering the weaker upstream markets. A West European PS producer commented that they anticipate decreases of €60-80/ton for October due to the declining production costs. A distributor said, “We hear some talk regarding possible October decreases by around €30-50/ton but we think that producers may initially try to stand firm on their offer levels.” In Asia, a similar downward trend is observed in the styrene market but the decrease amount is rather limited when compared to the drop in the European styrene market. Naphtha prices in Asia retreated by around US$45/ton since the start of September and influenced the decrease trend in the styrene market. However, production issues mostly prevented larger decreases from being seen on Asian styrene prices. According to ChemOrbis, Nihon Oxirane’s 420,000 tpa styrene plant in Chiba, Japan was shut for maintenance on September 4. The plant will be restarted in mid-October. Asahi Kasei started a scheduled turnaround at their 390,000 tpa No. 3 plant in Mizushima, Japan on September 26. The shutdown is expected to last for 40 days. South Korean Lotte Chemical shut their 560,000 tpa Daesan plant for maintenance on September 23 while the restart date is slated for the second half of October. Meanwhile, Singapore’s Ellba Eastern lifted the force majeure on their styrene supplies from their 550,000 tpa plant in Jurong Island, Singapore to its joint venture partners BASF and Shell Chemical on September 26, according to market sources. The company declared force majeure on styrene on September 16.