29 October 2012 19:34 [Source: ICIS news]
HOUSTON (ICIS)--US market participants expect the November benzene contract to settle higher this week, following the recent record highs seen in the spot market a couple of week earlier.
However, trade sources have been divided as to how much higher the November benzene contract will settle.
One producer has nominated the November benzene contract price at $6.00/gal ($1,796/tonne, €1,383/tonne) FOB (free on board) last week, which would be up by $1.60/gal from the October contract.
Downstream styrenics trade sources said they expect November to increase by about 40 cents/gal from October, while benzene trade sources expect the November settlement to increase by 50-60 cents/gal.
Spot price direction in the final week of the month is a general indicator of where benzene contracts will settle and which direction it will go.
Current benzene spot prices were at $4.85-5.35/gal FOB (free on board), down from a record high deal of $5.35/gal FOB two weeks earlier.
However, Monday’s range is still above spot levels of $4.31-4.43/gal FOB from 1 October.
($1 = €0.77)
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