Asia benzene prices fall $15/t on crude decline

16 January 2008 10:42  [Source: ICIS news]

SINGAPORE (ICIS news)--Asia’s benzene prices have fallen by 4% in the past two weeks, with Wednesday’s $15/tonne decline in prices due to lower energy values, said traders and a producer.

 

Prices have dropped about $45-50/tonne since the week ended 4 January, mainly due to the intermittent decline in NYMEX crude values and weak fundamentals in Asia, said traders.

 

NYMEX crude futures settled close to $90/bbl during trading in Asia due to recession fears and the International Energy Agency’s announcement that world oil demand growth this year would be lower than previously expected. 

 

Traders in the benzene market said the continuing bearish trend in Asia was also due to ample supply in the region and lacklustre demand from the downstream styrene monomer (SM) market.

 

Prices declined $15/tonne to $970-985/tonne FOB (free on board) Korea, according to global chemical market intelligence service ICIS pricing.

 

Meanwhile, bids for the second half of February were heard at $960/tonne FOB Korea and for March loading at $985-987/tonne FOB Korea.

 

Toluene prices in Asia also weakened $10/tonne to $920-930/tonne FOB Korea, with a bid heard for an open origin February loading cargo at $900/tonne FOB Korea, while an offer was heard for a second half of February lifting at $935/tonne FOB Korea.

 

Traders attributed the decline in prices to weaker crude and gasoline values seen overnight.  

By: Mahua Chakravarty
+65 6780 4359

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