Initial European April benzene contract settles at €883/tonne

01 April 2010 15:33  [Source: ICIS news]

(ICIS news)--An initial European April benzene contract has settled up €142/tonne from March at €883/tonne, one consumer and one producer said on Thursday.

The settlement was made at a dollar concept of $1,190/tonne FOB (free on board) NWE (northwest Europe), up $191//tonne from March, and converted to the euro price at an officially agreed exchange rate of $1.3482 to €1.

Players had expected a significant increase as spot levels had risen in the past few weeks due to a tight prompt market.

However, according to sources it was especially difficult to give an accurate estimation for the outcome this month, since a considerable premium of at least $50-80/tonne between delivery in the first half of April and delivery at any time in April was noted.

Players were divided as to whether the weighted average of all deals would be taken into account for the negotiations, or whether only deals for delivery at any time in April would be used as a starting point.

On 30 March, the day identified by most players as the starting point for negotiations, contracts for delivery at any time in April were seen at $1,130-1,180/tonne CIF (cost, insurance, freight) ARA (Amsterdam, Rotterdam, Antwerp), while a deal for delivery in early April was done at $1,250/tonne.

The March contract had been agreed at $999/tonne or €741/tonne.

Meanwhile, deals on Thursday were already higher at $1,190-1,230/tonne for delivery at any time in April, with a prompt spot deal also reported at $1,350/tonne.

Confirmation from other players was pending.

($1 = €0.74)

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By: Madelon Ten Cate
+44 20 8652 3214

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