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

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index