The Northwest European January styrene contract price is expected to increase on a monthly 

basis in line with higher feedstock costs. 

Both  benzene  and ethylene contract prices are anticipated to increase and this will feed into 

a higher styrene contract price, sources said Thursday. 

The  benzene  contract  price  is  set  for a sharp monthly increase, based on the spot trades 

concluded between December 22 and 29. 

January  trades were concluded between $830-845/mt (one private and confidential deal was 

reported at $850/mt), with the average trade calculated at around $837/mt or Eur791/mt. 

The  ethylene  contract  price  is  also anticipated to see a sharp increase. S&P Global Platts 

ethylene contract price indicator was calculated at Eur993.50/mt on Thursday. The Decembe

r settlement was at Eur940/mt. 

Taking  an  industry  estimated   formula  of  0.79  benzene  and  0.29  ethylene  to  produce 

ethylbenzene,  a   precursor  of  styrene,  costs  for  January  can  be  estimated  at   around 

Eur920/mt, approximately Eur150/mt above December. 

Styrene  spot   prices   in   Europe   have   also   been   on   an   upward   trend  following  a 

production problem at LyondellBasell/Covestro's propylene oxide styrene monomer unit in la

te November. Covestro's force majeure was also in place for the first half of December which 

placed upward pressure on styrene spot prices. 

The  styrene  spot  price  was  last  assessed  Thursday  at  $1,169/mt  FOB  ARA,  up from 

$1,130/mt on November 30. 

Global  fundamentals  in  the  styrene market  are expected to remain tight in January with a 

heavy  turnaround season in  Asia and the US which will likely support January contract and 

spot prices, according to sources.