UpdateEurope Dec benzene falls €131 to €185/t

28 November 2008 17:58  [Source: ICIS news]

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LONDON (ICIS news)--Initial December benzene contracts have been settled down €131/tonne or 41% from November on weak demand and lower energy complex values, market sources said on Friday.

The settlement was made at a dollar concept of $238/tonne or $239/tonne FOB (free on board) NWE (northwest Europe) and converted to a euro price of €185/tonne FOB NWE at an officially agreed exchange rate of $1.29 to the euro, according to a major buyer. 

General sentiment was depressed, as benzene was traded at approximately $70/tonne below naphtha all through the week, indicating the product was sold at a loss.

“This is extreme, we hope we have reached the bottom now,” one producer said.

Another producer said that “nobody is really satisfied, with the spread between benzene and naphtha at $70-80/tonne”.

The last time a European contract price was settled at less than €300/tonne was in May 2003, when the contract was agreed at €290/tonne FOB NWE.

December spot prices were assessed at $240-250/tonne CIF (cost, insurance, freight) ARA (Amsterdam, Rotterdam, Antwerp) by global chemical market intelligence service ICIS pricing.

For more on benzene visit ICIS chemical intelligence
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By: Madelon Ten Cate
+44 20 8652 3214

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