US aromatics complex sets new pricing records
07 July 2004 19:12 [Source: ICIS news]
HOUSTON (CNI)--US benzene prices reached new highs Wednesday, driven to as much as $3.20/gal on the US Gulf (USG) by an already tight market and robust demand from downstream sectors such as cumene, cyclohexane and styrene.
Traders report July deals sealed at $3.17/gal and $3.20/gal in the USG. In June the price topped off at $3.10/gal.
The US benzene market in part reflects elevated crude oil and gasoline values as trading resumed after the three-day Independence Day weekend. News that Iraqi oil exports were curtailed due to pipeline sabotage helped push Tuesday crude prices up by $1.26/bbl to $39.65/bbl. Gasoline rose 2.77 cent/gal to $1.2721/gal.
Benzene spot values drew additional strength from the strong energy complex Tuesday, rising to a high of $3.15/gal FOB USG for July cargoes and $3.10/gal for August. The July high was rewritten early Wednesday as the market maintained positive sentiment.
Spot toluene prices were fast on the heels of benzene numbers, with Tuesday deals completed within the $1.88-1.90/gal FOB USG range. A trader commented: “I wouldn’t be surprised to see toluene prices hit $2/gal in August.”
However, mixed xylenes (MX) prices were lagging in the $1.83-1.85/gal FOB USG band. But there were conflicting reasons provided for MX’s sluggish movement. A market analyst said MX supply is long, with a major producer having recently resumed MX fractionation activities. Trader sources called the MX market tight, with two major suppliers reportedly sold out for July. “There is little if any spot left to sell; that’s why prices are not moving up as fast,” said a trader.
Benzene’s main derivative product, styrene, also fared well in the past week, with truck and railcar volumes last heard to have changed hands at 48 cent/lb FOB USG Friday. Just two weeks ago, styrene prices were struggling to climb out of the low 40 cents/lb range.
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