European spot prices were rangebound Friday as spot trading slowed.

Chemical Industry

– Styrene CRP settles at $1,150/mt

–  CFR China rises $27/mt on the day

European spot prices were rangebound Friday as spot trading slowed. S&P Global Friday assessed styrene for loading 5-30 days forward at $1,072.50/mt FOB ARA Friday, down $0.50 on the day. Buyers and sellers were far apart today as $40/mt and $30/mt spreads were heard for April and May cargoes. A narrower notional bid and offer were heard but was not corroborated. The European April styrene customer reference price, also known as the truck contract price, has settled Eur95 up on the month at Eur1,150/mt. The increase was in line with expectations in the market, with sources pointing to improved buying interest ahead of the styrene plant maintenance as the driving factor. Feedstock costs had also increased in March, prompting market participants to expect an increase for the styrene April contract. In Asia, the explosion at the Jiangsu chemical plant is expected to prompt stricter safety inspections across a range of facilities. Some petrochemical producers have already received requests to reduce the volume of hazardous chemicals stored in their tanks for safety reasons, market sources said. This could spur increased selling interest for prompt cargoes in an attempt to reduce stocks. Styrene rose $27/mt on the day to $1,090/mt CFR China Friday, almost recovering all of its losses seen last week.

RATIONALE:

S&P Global Friday assessed styrene for loading 5-30 days forward at $1,072.50/mt FOB ARA Friday, down $0.50 on the day. April was assessed at $1,074/mt, stable on the day, within the firm bid offer range heard at $1,050-$1,090/mt. May was assessed at $1,064/mt, stable on the day, within the latest bid offer range heard at $1,050-$1,080/mt. The backwardation between April and May remained stable at $10/mt on Friday.

 

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