Asia benzene jumps up by $25/tonne on supply concerns

15 March 2011 10:37  [Source: ICIS news]

SINGAPORE (ICIS)--Asian benzene prices jumped up by $25/tonne (€18/tonne) on Tuesday afternoon due to concerns that regional supply will tighten as a number of plants in Japan have either reduced or stopped production in the wake of the 11 March earthquake, industry sources said.

Deals were concluded at $1,205/tonne FOB (free on board) Korea for May loading this afternoon, $25/tonne higher from Monday’s transaction price.

One cargo was sold at $1,215/tonne FOB Korea for first half April loading, as much as $50/tonne above the buying ideas cited on Monday.

Japan and South Korea are the two biggest suppliers and exporters of benzene in northeast Asia.

List of benzene units in Japan and their current operating status

Company

Location

Capacity

Operation status

Mitsubishi Chemical

Kashima

420,000 tonnes/year

Shut

JX Nippon Oil & Energy

Kashima

Kawasaki

190,000 tonnes/year

70,000-80,000 tonnes/year

Shut

Taiyo Oil

Kikuma

450,000 tonnes/year

Running at 65%

Idemitsu Kosan

Chiba

Tokuyama

577,000 tonnes/year

274,000 tonnes/year

Running normally

Sumitomo Chemical

Chiba

150,000 tonnes/year

Running at reduced rate of 85-90%

Mitsui Chemicals

Chiba

130,000 tonnes/year

Running at reduced rate

($1 = €0.72)


By: Chow Bee Lin
+65 6780 4359



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