US styrene spot export price falls amid crude oil crash

HOUSTON (ICIS)–The US styrene spot export price range was assessed lower this week amid decreases in upstream benzene costs following the crash in crude oil prices earlier in the week.

The were no deals heard during the week as market participants were hesitant to transact amid plummeting global crude oil prices, which are weighing on the chemical markets.

US spot export prices were assessed this week by ICIS at 29.71-30.39 cents/lb FOB (free on board) on bids and offers.

The decrease has spot export prices at their lowest since early 2009.

Even with prices this low, spot buyers are not yet willing to enter the market.

“With collapse in prices, everyone will be doing everything they can to minimise inventory,” a market participant said.

Looking at supply, US producer AmSty has completed its planned turnaround at its 953,000 tonne/year plant in St James, Louisiana, and INEOS Styrolution has begun a planned maintenance at its 455,000 tonne/year plant in Texas City, Texas, from March to April.

Styrene is a chemical used to make latex and polystyrene resins, which in turn are used to make plastic packaging, disposable cups and insulation.

North American styrene producers include AmSty, INEOS Styrolution, LyondellBasell Chemical, Pemex, Shell Chemicals Canada, Total Petrochemicals and Westlake Styrene.

Click here to view stories and content on the coronavirus and analysis on its impact on chemical markets