EPCA '04: Oct benzene contract seen down Euro50-60/tonne

27 September 2004 13:45  [Source: ICIS news]

MONTE CARLO, Monaco (CNI)--There was widespread speculation here Monday that the October European benzene contract price will be settled at a discount to September.

 

With spot prices stable at $1080-1085/tonne FOB Rotterdam today, delegates at the European Petrochemical Association (EPCA) annual conference were expecting to see a decrease of around Euro50-60/tonne from the September contract price of Euro950/tonne.

 

The contract price will be settled on Thursday (30 September), since it is the established convention that the Rotterdam spot price on the last working day of the month determines the following month’s contract price.

 

Monthly contract prices have been rising for the past year, according to global market intelligence and price reporting service ICIS-LOR*. The expected decrease in the monthly contract for October will be welcomed by consumers because they have struggled to pass on the record high price of benzene in their derivative markets.

 

Although derivatives markets such as styrene and polystyrene (PS) have been able to recoup some of the increases, selling prices to final end-users have not reflected anywhere near the full magnitude of the benzene hike.

 

*ICIS-LOR is owned by the same company as CNI.

The EPCA conference concludes here tomorrow (28 September).

CNI EPCA newsroom: Suite Naiades C, Grand Hotel; Tel. + 377-9315-1070/71

By: Barbara Ortner
+44 20 8652 3214

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