Europe benzene $5 off record high on crude surge

20 February 2008 15:09  [Source: ICIS news]

LONDON (ICIS news)--Spot Europe benzene values approached a record high on Tuesday as energy complex values and demand for prompt material nudged both bids and offers above $1,210/tonne (€823/tonne), according to market participants.

At 14:00 GMT, Buy-sell indications were heard at $1,210-1,220/tonne CIF (cost, insurance and freight) ARA (Amsterdam, Rotterdam, Antwerp) for February loading, some $10/tonne higher on the bids than the previous close.

The high end of this range is $5/tonne off the record deal of $1,225/tonne CIF ARA, recorded on 23 April 2007 for a May deal.

Deals had been rumoured at $1,210/tonne CIF ARA for February on both Monday and Tuesday, although little business was thought to have been done in a market described as volatile.

“It’s a pretty quiet market,” said one trader. “But crude has pushed things up. There isn’t that much time left to book February material either so prices will go up.”

NYMEX crude settled at a record high of $100.10/bbl for March contracts before falling to a low of $98.60/bbl and recovering to $99.98/bbl at 14:20 GMT.

Toluene, used in the production of benzene, had also made significant gains, valued at $930-960/tonne FOB (free on board) Rotterdam for March loading, up $10/tonne on the bid from Tuesday’s close.

($1 = €0.68)

ICIS Copyright © Reed Business Information 2009

Author: Peter Salisbury
+44 20 8652 3214

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