Interest to export styrene from Europe to Asia has been heard, although the export arbitrage is closed, according to market sources.
Sources said that there was interest to ship product from Europe to Asia from prior purchases of styrene, with some requests for availability of cargoes on this route heard recently.
The arbitrage is, however, currently closed.
S&P Global Platts assessed the May styrene spot price at $1,341/mt FOB ARA on Monday. On Tuesday, the CFR China marker price for July was assessed at $1,399/mt.
Freight costs to deliver product from Europe to Far East Asia are around $70/mt, trader sources said.
Sources said that it was "risky" to expect an arbitrage to open.
Nevertheless, the outlook for styrene prices has been mixed.
Some sources say that prices are bottoming out, while others say that there was still room for prices to fall.
In terms of other trade opportunities, the import arbitrage from the US remains open. Prompt US prices were assessed at 58.05 cents/lb ($1,278.50/mt) on Monday. With the European June price assessed Monday at $1,341/mt FOB ARA, the arbitrage is open.
Sources are expecting a flow of US product into Europe through May, after delays in April and early May.