Europe benzene trades up $60/t on energy surge

27 March 2008 12:47  [Source: ICIS news]

LONDON (ICIS news)--Spot benzene is trading up $60/tonne (€38/tonne) on deals earlier in the week spurred on by energy complex strength, players said on Thursday.

A deal was reported at $1,180/tonne CIF (cost, insurance and freight) ARA (Amsterdam, Rotterdam, Antwerp) for April loading, $60/tonne higher than the last confirmed April deal of the week at $1,120/tonne CIF ARA on Tuesday.

Market participants attributed the 5% increase in market price to resurgent energy complex values, with Brent crude valued at $104.70/bbl at 11:27 GMT, up $0.71/bbl from the previous day’s close.  

Summer blend gasoline traded at $927.50/tonne FOB (free on board) ARA on Thursday morning, meanwhile, where winter blend material had been seen trading as low as $875/tonne FOB ARA earlier in the week.

Toluene, which can be used in the production of benzene and is a component of the summer gasoline blend, was bid and offered within a $950-990/tonne FOB Rotterdam range, up $50-90/tonne from the last confirmed deal at $900/tonne FOB Rotterdam on 20 March.

“There don’t seem to be any production issues in Europe, and there is no supply issue,” a trader said, “so it can only really be related to energy.”

Some players said that a planned maintenance outage at ExxonMobil’s Botlek plant in the Netherlands, could have lent a tightening effect.

The plant, which produces 650,000 tonnes/year of benzene and 260,000 tonnes/year of toluene, was said to be two weeks into a six-to-eight-week turnaround. although ExxonMobil would not comment on the dates or duration of the outage.

($1 = €0.63)

For more on benzene and toluene visit ICIS chemical intelligence

By: Peter Salisbury
+44 20 8652 3214

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