Europe benzene October to settle early for EPCA

25 September 2008 13:37  [Source: ICIS news]

By Peter Salisbury

LONDON (ICIS news)--October benzene contracts in Europe will be settled early so negotiations do not coincide with a major industry event, participants said on Thursday, with expectations of a decrease from September levels widely mooted.

“We will settle tomorrow because of EPCA,” said a source at a major producer.

The annual European Petrochemical Association meeting, to be held this year in Monte Carlo, Monaco, is scheduled to take place from Saturday 27 September to Tuesday 1 October, with the vast majority of benzene market participants expected to attend.

As most attendees would be in meetings for much of the event’s duration, it was considered wise to conclude negotiations early for October, said one buyer source.

Monthly benzene negotiations in Europe have traditionally taken place on the last day of the month, with contract partners referencing the previous day’s spot values and exchange rate.

In September, a dollar concept of $1,286/tonne FOB (free on board) NWE (northwest Europe) had been agreed, converted to a euro price of €871/tonne FOB NWE at an officially agreed exchange rate of $1.4771 to the euro.

General expectations were of a significantly lower settlement in October

Deals were rumoured at $1,165/tonne and $1,175/tonne CIF (cost, insurance and freight) ARA (Amsterdam, Rotterdam, Antwerp) on Thursday.

At a current exchange rate of €1 = $1.4707, this would equate to a euro price of €792-799/tonne CIF ARA, €72-79/tonne lower than September.

“The market has been up and down with crude, finance and the hurricanes in the US,” said a source at one major producer, explaining the drop in values.

($1 = €0.68)

For more on benzene visit ICIS chemical intelligence
To discuss issues facing the chemical industry visit ICIS connect

By: Peter Salisbury
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly