Europe benzene market lacks direction amid global softening
Truong Mellor
23-Jan-2013
LONDON
(ICIS)–European benzene players are struggling to find
direction in the market so far in 2013, sources said on
Wednesday, as lukewarm derivative demand and global price
volatility keep activity subdued.
“The [benzene] market has been a little
bit all over the place so far this
year,” one trader said. “There is no rhyme or reason to
it.”
Other players agreed, noting that European
prices had previously moved down on improvements
in domestic availability, but that some aggressive buying has
also conversely pushed the numbers back up.
“There is no incentive to trade,” said
another source. “This means that the brokers have incentive
to push the numbers up or down.”
The European market has recently been
taking cues from the US, where prices edged down earlier this
week. Lower numbers in Asia have also helped lower domestic
buy/sell ideas.
January benzene prices opened the week with
offers as high as $1,495/tonne (€1,121/tonne), but have since
steadily edged down, closing on Tuesday 22 January at
$1,450-1,475/tonne.
While offers were up again this morning at $1,485/tonne, one
trader said that the market was largely quiet, and expects
that any business done would be completed closer to the
$1,460/tonne mark. January bids were later heard at
$1,440/tonne, which seemed to confirm this.
February prices have been flat to firm when compared to the
current month, supported by a bullish outlook for the
downstream styrene market ahead of several planned
turnarounds starting in March.
Deals for February delivery were done as high as $1,485/tonne
so far this week, while offers reached the $1,500/tonne mark
on Tuesday 22 January before easing off slightly.
Downstream, the styrene market has seen buyers pull back this
week, with January offers still above $1,700/tonne but
gradually coming down, while there were no firm corresponding
bids.
There was some speculation that imported cargoes from the US
scheduled to arrive next month is keeping consumers on the
sidelines, amid an uncertain outlook on demand for key
styrenics derivatives.
Nevertheless, the majority of players believe the next few
months on styrene pricing will be bullish, once availability
is tightened when the forthcoming turnarounds get
underway.
($1 = €0.75)
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