The spread between Asian styrene monomer and benzene widened to an 18-month high of $339.50/mt last Friday, as limited supply pushed SM prices higher amid a weakening benzene market.
The last high for the spread was on September 19, 2011, at $354/mt, Platts data showed.
SM prices rose $16.50/mt week on week to be assessed at $1,631.50/mt FOB Korea last Friday, or unchanged from a day ago. Prices on a CFR China basis rose $17.50/mt over the week, or up $1/mt from the previous day, to be assessed at $1,650.50/mt last Friday.
Part of the support for the Chinese SM market came from relatively low inventory of around 84,500 mt, down about 3% from the week before, amid turnarounds at Middle Eastern and South Korean SM plants.
Benzene prices meanwhile, crashed through the $1,300/mt psychological barrier Friday, shedding $11/mt day on day and $32/mt from a week ago to be assessed at a 19-week low of $1,292/mt FOB Korea. The fall was attributed to the weak US and China benzene markets, market sources said.
Last week's rise in SM prices also saw its spread to its other feedstock, ethylene, widening to $381.50/mt last Friday -- its highest in over two months -- amid a week-on-week fall of $85/mt in ethylene to $1,250/mt CFR Northeast Asia.
This is its widest since January 10, at $403/mt.
SM is made of about 80% benzene and 30% ethylene.
