Europe aromatics rise $10-60/t on high crude

26 March 2008 16:58  [Source: ICIS news]

LONDON (ICIS news)--European aromatics spot values increased some $10-60/tonne on Wednesday as crude oil prices moved up on US data released earlier in the day.

 

Benzene and styrene were valued at $1,145-1,170/tonne (€733-748/tonne) CIF (cost, insurance and freight) ARA (Amsterdam, Rotterdam, Antwerp) and $1,480-1,500/tonne FOB (free on board) Rotterdam for April loading by global chemical intelligence service ICIS pricing in afternoon trading, up $15-30/tonne and $10-20/tonne respectively from morning trading.

 

March loading styrene, meanwhile, was pegged $50-60/tonne higher than at the close of the previous day’s business, at $1,470-1,490/tonne.

 

Deals for April and May loading benzene were widely rumoured at $1,145/tonne CIF ARA, meanwhile, at a $25/tonne increase to the previous day’s high deals at $1,120/tonne CIF ARA.

 

May Brent crude was trading at $103.75/bbl (barrel) at 16:13 GMT on Wednesday, up $3.15/bbl from Tuesday’s close, after weekly US stock figures from the Energy Information Administration showed crude stocks to be unchanged and a larger than expected draw on products, with gasoline stocks in particular falling 3.3 million barrels.

 

“Things are definitely rebounding on energy,” said a trader source.  “We saw buyer interest pick up on benzene yesterday on lower numbers and energy has definitely helped to pick things up. At the current price [$1,145/tonne CIF ARA] people will want to buy.”

 

“The market has moved up a lot today,” said another styrene trader.  “The stats helped and the US styrene market is definitely stronger as well.”

 

Benzene and styrene values had been eroded in recent weeks as crude oil values collapsed on worries over the US economy and lower perceived forward demand.

 

($1 = €0.64)

 

For more on aromatics see ICIS chemical intelligence

By: Peter Salisbury
+44 20 8652 3214

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