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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