30 April 2012 17:11 [Source: ICIS news]
LONDON (ICIS)--An initial European benzene contract price (CP) for May has been agreed at €948/tonne, an increase of €58/tonne from the previous month, one buyer confirmed on Monday.
The settlement was made at a US dollar concept of $1,254/tonne FOB (free on board) NWE (northwest Europe) and converted to the euro price at the agreed exchange rate of €1:$1.3228.
An increase had been expected, as supply tightened because of an upturn in demand and reduced production output owing to previously bearish sentiment.
One trader said the spike in activity seen since last week has been caused by some players looking to cover positions, as availability for the prompt market is being squeezed by restricted pygas supply.
Further confirmation from other players is pending.
Follow Truong Mellor on Twitter for daily tweets on the aromatics markets
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