Asia benzene falls $20/t on US drop, weak trading

19 June 2008 04:51  [Source: ICIS news]

SINGAPORE (ICIS news)--Asian benzene values slipped $20/tonne on Thursday morning due to an overnight decline in US values and a resultant weak trading sentiment in Asia, said traders.

Despite overnight increases in NYMEX crude values to $136/bbl, Asia’s benzene values were notionally assessed at $1,300-1,310/tonne FOB (free on board) Korea, $20/tonne lower than Wednesday’s close.

An offer for a big berth any August loading $1,325/tonne FOB Korea heard at the start of trades slid to $1,305-1,310/tonne FOB Korea closer to mid-day in Singapore. No bids were heard.

A deal was heard at $1,300/tonne FOB Korea for a big berth any August loading cargo, $22/tonne lower than the last transaction Wednesday.

"Sentiment is weak [here] as Asia benzene is too high compared with the US," said a Korean trader.

Asia is a net exporter of benzene to the US, with an estimated 40,000-50,000 tonnes shipped every month when the arbitrage window is open.

The US benzene spot bid-offer range for June was at $4.06-4.09/gal FOB (free on board) HTC (Houston-Texas City) late Wednesday evening, down from $4.12-4.17/gal FOB HTC on Tuesday.

Also, affecting today’s market was the news of restart of Kashima Aromatics in Japan, said another Singapore-based trader.

For more on benzene visit ICIS chemical intelligence 
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By: Mahua Chakravarty
+65 6780 4359

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