Europe benzene surges $40-45/t on US, Asia values

25 January 2007 11:21  [Source: ICIS news]

LONDON (ICIS news)--European benzene soared by $40-45/tonne on the back of higher US and Asia values and a better market balance, traders said on Thursday.

 

European February benzene was last assessed at $950-965/tonne (€731-743/tonne) CIF (cost, insurance, freight) ARA (Amsterdam, Rotterdam, Antwerp) on Thursday morning, according to global chemical market intelligence service ICIS pricing, after closing at $910-920/tonne on Wednesday.

 

The jump of $40-45/tonne was, according to traders, widely attributed to firmer US February benzene values, which closed on Wednesday at $3.23-3.27/gal DDP (delivery duty paid) USG (US Gulf Coast), roughly equivalent to $966-977/tonne DDP USG.

 

Furthermore, Asia benzene was assessed at $925-935/tonne FOB (free on board) Korea on Thursday, a hike of $45/tonne from the previous close, which also supported the upward European sentiment.

 

Traders said that the European market had become less oversupplied in the last week due to shipments to the US of around 16,000-17,000 tonnes of benzene since the westbound arbitrage opened on 16 January and to solid demand.

 

The US arbitrage could appear to have closed on paper due to higher European values, but some traders felt the current levels had been reached too fast, were unsustainable and could change downward as soon as the US market opens.

 

Upstream, naphtha indications were at $520-524/tonne CIF NWE (northwest Europe), up $2/tonne from Wednesday’s close.

 

Downstream, styrene was slowly pulled upwards by the hike in benzene with February values at $1,160-1,170/tonne FOB Rotterdam on Thursday morning, up $15/tonne from the previous close.

 

($1 = €0.77)

By: Jorn Steffensen
+44 20 8652 3214

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