11 July 2008 18:30 [Source: ICIS news]
LONDON (ICIS news)--Spot benzene values shot up almost $100/tonne within 24 hours in Europe as energy values shot up and more players bid for a tightening supply of material, players said on Friday.
Where July bids and offers had been seen at $1,340-1,355/tonne (€844-854/tonne) CIF (cost, insurance and freight) ARA (Amsterdam, Rotterdam, Antwerp) on the afternoon of Thursday 10 July, by the close of business on Friday the market was valued at $1,430-1,450/tonne CIF ARA, some $90-95/tonne higher.
Deals had been seen throughout Friday at $1,410/tonne, $1,430/tonne and $1,445/tonne CIF ARA for July, a record high.
The new prices represented an increase at the highest level of $130/tonne from the week’s lowest front month deal of $1,315/tonne CIF ARA, according to global chemical intelligence service ICIS pricing.
Market participants attributed the increase to a spate of production problems and reduced production in European crackers leading to tighter supply, alongside record high crude oil and gasoline costs.
“It isn’t just one thing,” said one trader. “July has run tight, and now the producers are seeing themselves without material and trying to buy volumes. Traders have already sold a lot of their July volumes, and with crude spiking, we are seeing some crazy numbers.”
($1 = €0.63)
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