Europe benzene within $1/t of symbolic $1,200/t

28 April 2008 16:11  [Source: ICIS news]

LONDON (ICIS news)--European benzene was traded within $1/tonne of the symbolic $1,200/tonne mark on Monday as aromatics gained further strength on resurgent gasoline values, traders said.

"There is a push from the upside. We are moving into contract negotiations and crude has pushed up a lot recently," a trader said.

"Traders seem to think that gasoline demand is going to go up [on the back of the US driving season] and that as a result there will be less aromatics around in general."

Inter-trade deals were reported on Monday at $1,196/tonne, $1,198/tonne and $1,199/tonne CIF (cost, insurance and freight) ARA (Amsterdam, Rotterdam, Antwerp) for May loading, up $9/tonne from a deal confirmed earlier in the day.

Gasoline hit a new record high of $1,016/tonne FOB (free on board) AR (Amsterdam, Rotterdam), with traders seeing demand from the US on the upturn.

Players in the benzene market had recently described $1,200/tonne CIF ARA as a psychological buying barrier, especially given what was perceived as a well supplied market.

The highest benzene deal recorded during global chemical market intelligence service ICIS pricing’s history was at $1,225/tonne CIF ARA, in April 2007, one of a handful of times that the product has traded in the $1,200s/tonne CIF ARA.

($1 = €0.64)

For more on styrene visit ICIS chemical intelligence

By: Peter Salisbury
+44 20 8652 3214

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