Europe November benzene contract agreed at €660/t, down €41/t

31 October 2011 16:10  [Source: ICIS news]

LONDON (ICIS)--The European November benzene contract has been agreed at €660/tonne ($930/tonne), down €41/tonne from the previous month, one seller confirmed on Monday.

The settlement was made at a US dollar concept of $935/tonne FOB (free on board) NWE (northwest Europe) and converted to the euro price at the officially agreed exchange rate of €1 to $1.416. Further confirmation from other players is pending.

A decrease was expected, as spot levels came down towards the end of October on oversupply because of weak styrene demand. Buying interest from the phenolic chain was also described by one player as softer in the fourth quarter.

As a result, downstream sources said that they expect a similar reduction for styrene in November.

Ethylene came down by €20/tonne,” said one styrene purchaser. “I would expect discussions for styrene to be focused with the minus €20-30/tonne range.”

However, with some tightness emerging for early November styrene on the back of delayed production restarts and the late arrival of scheduled imports from the US, other players argue that a decrease was not necessarily a forgone conclusion.

($1 = €0.71)

For more on benzene and styrene, visit ICIS chemical intelligence

By: Truong Mellor
+44 208 652 3214

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