Rare two-tier settlement done in US July benzene

01 July 2005 17:06  [Source: ICIS news]

HOUSTON (CNI)--July US benzene contract prices have been finalised in a rare two-tier settlement at $2.95 (Euro2.46)/gal and $3/gal, market participants said Friday.

 

Equistar settled July benzene contract prices with its customers at $2.95/gal and ExxonMobil settled with its customers at $3/gal, according to traders. The two July settlements are 65 cents/gal and 70 cents/gal higher respectively than the June settlement of $2.30/gal.

 

Neither Equistar nor ExxonMobil would provide public confirmation of their benzene contract prices with customers.

 

The July benzene contract price settlement is the first non-uniform US benzene settlement since January 1990. That January, 1990 benzene contract price reportedly settled in a range of $1.35-1.45/gal.  While a two-tier settlement in US benzene contracts is unusual, it conveys no particular significance for the market - unless the two-tier price spread was a significant amount.

 

The July benzene contract settlement comes after spot prices increased from a monthly low of $2.25-2.30/gal FOB USG during the first week in June to as high as $3-3.05 the last week in June. Traders said those late June spot prices heavily influenced July contract price settlements. Average spot prices for 23-30 June were assessed in a range of $2.93-2.97/gal FOB USG.


By: Aaron Goetze
+1 713 525 2653



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