EU April Styrene Premium over Feedstock Costs Down 20%, but Remains at Firm Leve

European styrene's premium over its feedstock costs has declined 20% on the month for April, but the outright level remains at a high level, according to S&P Global Platts data Monday.

The April styrene barge contract price was fully settled Monday at Eur1,375/mt ($1,467/mt), declining Eur275/mt or 17% on the month. Feedstock costs saw a smaller monthly decrease, falling 15% on the month.

The benzene April contract price was fully settled at Eur745/mt, down Eur192/mt, and the ethylene contract was fully settled at Eur1,050/mt, at a rollover.

Taking an industry estimated formula of 0.79 mt benzene and 0.29 mt ethylene to produce 1 mt of styrene, costs can be calculated at Eur893/mt.

The styrene premium over feedstock costs can be calculated at Eur482/mt for April, declining 20% on the month. The April styrene premium is significantly above the 2016 average for the premium at Eur324/mt.

Despite the monthly fall, the premium remains at a firm level, around the first quarter average of Eur490/mt.

Some buyers in the contract negotiations were heard to be asking for a larger decrease in the April contract price.

"Perhaps [the monthly fall was] not as large as it should have been," a styrene buyer said Monday