04 December 2012 11:15 [Source: ICIS news]
LONDON (ICIS)--European spot benzene prices for both December and January remain bullish, shooting up by as much as $50/tonne (€39/tonne) overnight on firming global prices, as well as ongoing feedstock fundamentals, sources said on Tuesday.
“Costs are high on cracker feeds in the US, and benzene is short there,” said one trader. “Asia has cut back on [operating] rates, so there is less benzene available, and now Europe is reacting to all of this.”
European spot numbers for December closed on Monday 3 December at $1,410-1,420/tonne CIF (cost, insurance and freight) ARA (Amsterdam-Rotterdam-Antwerp), but opened this morning at $1,440-1,470/tonne. January bids were also at $1,440/tonne, but were not yet met with any offers, indicating that the market could climb higher still.
In Asia, bids for January-loading cargoes were at $1,440-1,455/tonne FOB (free on board) Korea. An offer for January-loading cargo was heard on Tuesday 4 December at $1,480/tonne FOB Korea.
Prompt benzene spot prices in the US were discussed at $4.95-5.05/gal FOB on Monday 3 December.
The December European benzene contract was settled at a US dollar concept of $1,408/tonne FOB NWE (northwest Europe).
($1 = €0.77)
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