NPRA '08: US benzene players split on April price

30 March 2008 22:54  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--US trade participants are divided over the direction of the upcoming April benzene contract settlement due to volatility in the spot market, they said on Sunday.

Aromatics spot traders, speaking on the sidelines of the 33rd National Petrochemical & Refiners Association (NPRA) meeting, said April contracts would likely move lower.

The lower sentiment was based on a decline in benzene spot prices compared with a month earlier.

 

Prompt benzene spot levels are at $3.78-3.82/gal FOB HTC (Houston-Texas City), according to aromatics traders, down from $3.93-3.95/gal FOB HTC on 29 February, according to global chemical market intelligence service ICIS pricing.

 

US benzene producers last week nominated April contracts at $4.00/gal ($1,200/tonne) FOB (free on board) due to recent record highs seen in the energy industry and the upcoming summer driving season, according to trade sources.

The $4.00/gal FOB nomination was up 3 cents from the March benzene contract of $3.97/gal FOB.

 

The US benzene contract is expected to be settled by 31 March. Major producers include ExxonMobil, Equistar and BP.

 

For more on benzene visit ICIS chemical intelligence 

By: Brian Balboa
+1 713 525 2653

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