01 October 2012 10:10 [Source: ICIS news]
Correction: In the ICIS story headlined "Europe October benzene contract fully confirmed at €998/tonne" dated 1 October 2012, please read in the second paragraph ...agreed exchange rate of €1:$1.2876... instead of ...agreed exchange rate of €1:$1.2896... A corrected story follows.
LONDON (ICIS)--The European benzene contract price for October has been fully confirmed at €998/tonne, down by €28/tonne from the previous month, two major buyers said on Monday.
The settlement was made at a US dollar concept of $1,285/tonne FOB (free on board) NWE (northwest Europe) and converted to the euro price at the agreed exchange rate of €1:$1.2876.
The October contract price was confirmed by two major producers ahead of business close on Friday.
A slight decrease in dollar terms had been expected as the spot market has fallen over the past week in tandem with softer oil and energy numbers.
However, the downward movement was tempered by ongoing supply restrictions for the first half of October, and the overall bullishness seen in the market is expected to continue into the fourth quarter.
Although a slight decrease was expected as September drew to a close, there was some panic in the market earlier in the month when spot benzene traded as high as $1,500/tonne CIF (cost, insurance, freight) ARA (Amsterdam, Rotterdam, Antwerp) because of tight prompt availability.
In relation to this and following confirmation of the October contract, a major buyer said: “There was some panic because of unforeseen supply issues and people speculating.”
An aromatics trader expected to see the benzene marking calming down following a period of uncertainty. “It’s been rather busy, but it seems for the seoncd half of October we will see better availability and lower prices,” the trader said.
($1 = €0.78)
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