Europe benzene falls $70/t on plunging crude

02 September 2008 12:48  [Source: ICIS news]

LONDON (ICIS news)--Benzene traded down $70/tonne (€52/tonne) in Europe on Tuesday, falling on upstream energy complex values, market participants said, with related markets also following the downtrend.

 

Spot benzene for September loading had traded at $1,160/tonne CIF (cost, insurance and freight) ARA (Amsterdam, Rotterdam, Antwerp) inter trade earlier, compared with a deal recorded the previous day at $1,230/tonne CIF ARA.

 

By 11:00 GMT, a second trade was rumoured at $1,170/tonne CIF ARA, with the market valued at $1,170-1,190/tonne CIF ARA, up $20/tonne from earlier in the day, according to global chemical market intelligence service ICIS pricing.

 

“We are only 10 working hours from the CP [monthly contract price] and we are $100/tonne off the settlement,” a trader source said.

 

The September benzene contract had been settled on Friday 29 August at a dollar concept of $1,286/tonne FOB (free on board) NWE (northwest Europe) on the basis of spot business concluded the day before, converted to a euro price of €871/tonne FOB NWE at an officially agreed exchange rate of €1 = $1.4771.

 

As benzene fell, downstream styrene followed suit, with bids and offers assessed at $1,540-1,610/tonne FOB Rotterdam with September loading and $1,550-1,580/tonne FOB Rotterdam for October, down $30-70/tonne and $20-30/tonne respectively from the previous close.

 

“The styrene market is tanking right now with the help of crude and benzene,” a trader source said.

 

October Brent crude traded mid-morning at around $105.86/bbl, after hitting a low of $104.22 at 09:15 GMT which marked a $5/bbl fall from Monday’s close, following reports that Hurricane Gustav caused minimal damage to oil facilities in the Gulf of Mexico.

 

At the same time, naphtha, upstream from benzene, was assessed at $888-898/tonne CIF NWE, down from Monday's close of $924-934/tonne.

 

($1 = €0.68)

 

To discuss issues facing the chemicals industry visit ICIS connect

For more details on benzene visit ICIS chemical intelligence

 

By: Peter Salisbury
+44 20 8652 3214

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