With the sharp rise in the market spot premium, the spot price of styrene in Europe has reached its highest point since June 1.
On Wednesday, the future FOB spot price of styrene for 5-30 days was assessed at $ 1,388 / tonne ARA, which rose by $ 5.50 / tonne that day and reached its highest level since early June. The spot premium from August to September calculated on Wednesday was $ 22 / t.
Production problems at the POSM (propylene oxide / styrene monomer) joint venture between Lyondell Basel and Covestro have driven production spikes and sharp spot premiums.
Covestro said that there was a problem on August 1, and the company also confirmed the force majeure of the styrene supply at the Dutch plant.
Rising prices are contrary to the expected market equilibrium to long-term fundamentals. From mid-July to late July, there was a delay in the import of products from the United States, but the market was considered to have sufficient supply in August, when the price increase was not large.
Covestro said the length of the factory shutdown is difficult to predict.