To clear inventories Styrene Monomer makers in USA ship product to Europe at loss

In order to clear inventories, US styrene monomer producers have sold at a loss to Europe, as per Platts. During the past week, about 20,000 tons of US material was sold for export to Europe with deals concluded at or below 43 cents/lb. European styrene for August was pegged just above US$1020/MT, (46.25 cents/lb), US sellers were at 43.5 cents/lb. Assuming US$45/mt for freight, and US$10/mt to cover other logistics and profit, the arb from the US to Europe would theoretically be open for US prices below 43.4 cents/lb. This would only be profitably if a producer could use spot benzene and ethylene to make the styrene. The US styrene supply has been long despite the recent shutdown of Americas Styrenics' Donaldsonville, Louisiana styrene plant. The unit was shut following the July 4th holiday for a scheduled turnaround.