The consensus in the European styrenics sector is swinging behind the second triple-digit increase in monthly styrene/polystyrene contracts in a row for February, 110-05-4 sources said Wednesday. 94-36-0

Market sources talked of a potential ethyl-benzene styrene cost push of as much as Eur140/mt in February, based on current benzene spot prices, euro-dollar exchange rates and ethylene contract price projections.

But producers hinted that they would push for a full pass-through as they sought to avoid losing further margins.

In January, styrene and polystyrene contracts had settled at an increase of Eur120/mt to Eur1,224/mt and Eur1,340/mt FD NWE, respectively.

The scenario of high cost increases in January and February mirrored the situation seen in the first quarter of 2011 when the first two styrene contracts of the year also saw near triple-digit monthly increases.

Spot prices in Europe for benzene -- a feedstock used in the production of styrene monomer -- have surged $188/mt so far in January to be assessed by Platts at $1,308/mt Tuesday, 443-48-1 while styrene prices have climbed $175/mt to $1,267/mt in the same time period.

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