US benzene spot prices at eight-month low

24 January 2007 17:17  [Source: ICIS news]

HOUSTON (ICIS news)--US benzene spot prices have reached an eight-month low this week, due to weaker energy prices, healthy production rates and open arbitrage windows in Europe and Asia, trade participants said on Wednesday

Current benzene spot prices in the US were at $3.10-3.13/gal FOB (free on board) HTC (Houston-Texas City), traders said on Wednesday morning.

The last time spot benzene prices were that low was 26 May, when values were assessed at $3.08-3.09/gal by global market intelligence service ICIS pricing.

“[The] US market sees arbitrage opening from Europe and Asia and based on global supply and demand, US benzene prices will slowly come down further,” an aromatics producer said.

On Wednesday, Europe benzene prices were at $910-925/tonne CIF (cost, insurance and freight) ARA (Amsterdam, Rotterdam, Antwerp), or about $3.03-3.08/gal, below current prices in the US.

In Asia, traders said current benzene bid/offers were at $880-890/tonne FOB Korea, or about $2.93-2.97/gal, also below US benzene prices.

“When you have two regions that can ship to the US, then you know the arbitrage window has to close soon,” a Houston-based aromatics broker said. “People would rather move the market down than have tons of product move to the US.”

Major benzene producers in the US are ExxonMobil, Lyondell’s Equistar, Shell and Chevron Phillips.

By: Brian Balboa
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