16 October 2013 20:28 [Source: ICIS news]
HOUSTON (ICIS)--US benzene spot prices rebounded on Wednesday on the back of renewed buying interest, following a nearly five-week long decline. The rebound in benzene spot levels also came alongside stronger NYMEX energy futures during the day.
Current prompt benzene spot prices were at $4.07-4.16/gal ($1,218-1,245/tonne, €901-921/tonne) FOB (free on board), market participants said. The day’s range was up from $4.04-4.07/gal FOB the previous session, which was at a 13-week low for the US benzene market.
Since early September, the benzene market has been moving down, alongside thin demand, lacklustre energy futures, readily available supply and imports from abroad.
But trade sources said earlier in the week that the floor for the benzene market was at $4.00/gal, where there was strong resistance to prices dropping below.
Market sentiment among trade participants was that the $4.00/gal barrier was more of psychological number that players did not want to move below.
Prompt benzene spot prices have not been below $4.00/gal since May 2012.
Although prices rebounded on Wednesday, market participants were reluctant to say whether benzene would continue higher trend.
($1 = €0.74)
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