Asia benzene at five-month highs on crude gains, strong SM

23 March 2009 04:25  [Source: ICIS news]

SINGAPORE (ICIS news)--Asian benzene was hovering at five-month highs on Monday after crossing the $450/tonne (€333/tonne) level last Friday on the back of surging crude values and a firm downstream styrene monomer (SM) market, said traders and producers.  

Prices were largely stable in morning trade amid thin trading after closing at $460-470/tonne FOB (free on board) Korea last Friday, up $15-20/tonne from the previous week and the highest recorded since 24 October 2008, according to global chemical market intelligence service ICIS pricing.

Crude values breaching the $50/bbl level late last week, along with the uptrend in SM values, pushed benzene higher, said traders and producers.

Benzene demand from SM producers has been on the rise since the hike in SM values in the past few weeks, they added.

SM plants in Japan have been raising operating rates or restarting units as SM supply in the region was tight. 

Tight benzene supply in Japan, where most crackers and reformers were operating below capacity, also supported benzene values, said producers.

Asia benzene values has been the lowest priced among all major aromatics products in this region since the fourth quarter last year as prices collapsed from mid-$900/tonne FOB Korea level in early October 2008 to $350/tonne FOB Korea by the end of the same month.

($1 = €0.74)

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By: Mahua Chakravarty
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