14 May 2012 09:23 [Source: ICIS news]
By Mahua Chakravarty
SINGAPORE (ICIS)--Asia’s benzene prices could decline further in coming days after touching a four-month low on Monday morning as a result of a downturn in ?xml:namespace>
Benzene spot prices were assessed at $1,120-1,140/tonne (€862-878/tonne) FOB
Weaker crude and naphtha futures, a downtrend in
Discussions plummeted with bids for second half June loading heard on Monday morning at $1,135/tonne FOB
An offer for second half June at $1,145/tonne FOB
Sentiment was bearish in
Following today’s downturn in Asian prices, the arbitrage window was wide open as he US-Asia benzene price spread was $80-85/tone.
Asia is a net exporter of benzene to the
“If you look at the spread with naphtha, there is still room to go down further,” the trader said referring to the recent decline in naphtha prices and the current $190.50-207.50/tonne spread between benzene and naphtha.
The aromatics producers consider a spread of about $140-150/tonne from naphtha to benzene, toluene and MX as the break-even point for production margins.
Benzene prices have been on a steady downtrend since 4 May 2012, when prices were at $1,200-1,205/tonne FOB
Benzene supply in northeast
Demand from the downstream styrene monomer (SM) sector is also stable-to-weak, and near-term expectations about SM are bearish due to a poor derivatives styrenics sector, they added.($1 = €0.77)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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