Styrene prices hit a year low in Europe

20-May-14

Spot styrene prices in Europe hit a year low after tracking a downward trend since the beginning of May, as per ChemOrbis. The weakness in the styrene market was attributed to softer benzene prices as well as rising supply levels. Spot prices on an FOB NWE basis dropped $60/ton on the week to move below the US$1600/ton threshold. When compared to the beginning of May, prices are suggesting a larger drop of US$90/ton. Some players think that the market has reached the bottom level while others are arguing the opposite, pointing to the other softer global styrene markets. The Asian spot styrene market is tracking a stable to slightly softer trend amidst slow trading activities while prices in the US dropped to the lowest level since November 2013. The benzene market has remained on a downward note since the end of March in line with increasing import availability. Spot prices on a CIF NWE basis declined by US$35/ton week over week and they are also standing around US$70/ton below early May levels when they stood slightly above US$1400/ton. According to ChemOrbis, slower than expected demand in the downstream PS market was cited as another reason weighing down styrene costs. Increases of up to €20/ton are passing on May PS deals in Europe in line with the higher May monomer contracts, but rollovers were also reported in the second half of the month after many sellers stepped back from their hike requests due to thin trading activities. Most converters report seeing better demand for their end products when compared with the first half of 2013, but they remain cautious about their purchases citing their sufficient stocks.