Trade Resources Industry Trends The NWA 3-30 Day Benzene Price Was Assessed at $1,295.50/Mt CIF ARA

The NWA 3-30 Day Benzene Price Was Assessed at $1,295.50/Mt CIF ARA

The northwest Europe styrene premium to benzene has hit its highest level in over one month on tight supplies following a potential production issue and vessel delays, according to market sources.

At Tuesday's European close, the NWE 3-30 day styrene price was assessed at $1,832/mt FOB ARA, up $14/mt from Friday, and marking a record high, Platts data shows. The last record was $1,828.50/mt FOB ARA on July 23, 2008, according to Platts data.

The NWE 3-30 day benzene price was assessed at $1,295.50/mt CIF ARA, down $9.50/mt from Friday. This puts styrene at a $536.50/mt premium to benzene, the highest seen since July 22 when it was assessed at $543/mt, Platts data shows.

"There might be a styrene production problem somewhere in Europe," a trade source said Wednesday morning. "As a consequence, styrene producers have to buy styrene and sell benzene which widens the differential. I have also heard of vessel delays from consumers, which is another reason for the current hype in styrene."

The source could not provide further details on the matter which remained unconfirmed. However, several industry sources have recently pointed to both a styrene production issue and vessel delays as key contributing factors to the rise in styrene prices.

The surge in styrene prices since last last week has also been attributed to a lack of imports, stronger domestic demand and sustained production issues out of the Middle East.

On the week, NWE styrene prices have risen sharply by just over $100/mt, while NWE benzene prices have remained largely range-bound, posting an increase of $14/mt, Platts data shows.

While market sources agree that the styrene market is tight, there are no signs of tightness yet in the benzene market and trading activity is muted ahead of the September contract settlement, a second trade source said late Tuesday.

"I think people are waiting for the September contract to settle later this week. They are trying to keep the market firm and steady."

Source: http://news.chemnet.com/Chemical-News/detail-2141709.html
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NWE Styrene Premium to Benzene Hits Month High on Tight Supplies
Topics: Chemicals