Home > Chemical News

Chemical News

China's Jul crude oil imports fall 15% on month to 19-mil mt: GAC

https://www.chemnet.com   Aug 11,2010
US styrene offers for August were heard between 48 and 49 cents/lb on Monday, down slightly from last week as variable cost estimates were lower.


One seller said any spot deal would have to be backed up with spot feedstock purchases. With spot benzene at 295 cents/gal for August and ethylene offered at 37 cents/lb, variable costs for styrene production in the US were near 45.75 cents/lb. Assuming 3 cents to cover fixed costs and profit,the notional offer would fall between 48 and 49 cents/lb.


Early last week, a September styrene deal was reported done at 50.75cents/lb. At the time, September benzene prices had climbed to 305 cents/gal.


"That deal made sense at the time -- based on feedstocks," a styrene seller said Monday. "But feedstocks have fallen since then, so I doubt you'd be able to sell that high now."


A buyer late last week said end of August and beginning of September material could be had for less than 47 cents/lb. The offers above 48 cents/lb would limit export opportunities, a source said.


"Unless it's going to Latin America," the source said. "If it's going south to Latin America, it'll probably be able to go for a penny more than to Europe or Asia."


European styrene prices were stable on Monday near $1,090/mt. At that level, the US price would have to fall below 46.75 cents/lb to encourage shipments. Asian trading was closed on Monday because of a holiday, keeping the workable arbitrage level from the US to Asia below 45.75 cents/lb.


The US 3- to 30-day styrene price on Friday was assessed at 47.3 cents/lb FOB USG. The assessment reflected a price at the start of the fourth week of August.
 Print  |    add to Favorites  |    Close