US October benzene contract expected stable to lower

27 September 2013 16:52  [Source: ICIS news]

HOUSTON (ICIS)--The US October benzene contract is expected to settle within a range of $4.35-4.40/gal ($1,302-1,317/tonne, €963-975/tonne), which is flat to lower compared with the September benzene contract of $4.40/gal, according to trade sources on Friday.

The benzene spot market has been volatile during September, leading to a mixed reaction on which direction the October benzene contract will move.

Benzene spot prices peaked at about $4.55/gal in early September, following a nearly month long increase in aromatics prices on the back tight supply expectations. The September peak was also attributed in part to supply concerns related to a potential military strike against Syria.

US benzene spot prices would gradually come down for the remainder of September as geopolitical tensions with Syria eased, and NYMEX oil futures came down.

Current benzene spot prices were at $4.27-4.35/gal FOB (free on board), below the September contract price of $4.40/gal.

The benzene contract typically settles at the end of the month, but some market participants said the September contract could settle before the weekend.

($1 = €0.74)

By: Brian Balboa
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly