Europe benzene sentiment strong while styrene moves lower
Truong Mellor
16-Apr-2013
LONDON
(ICIS)–Strong forward sentiment amid cracker turnarounds is keeping European benzene
levels steady-to-firm, sources said on Tuesday, despite heavy
losses on crude and energy futures this week.
Spot values for April benzene have stayed
above $1,300/tonne (€1,001/tonne) CIF
(cost, insurance, freight) ARA
(Amsterdam-Rotterdam-Antwerp) level, relatively stable
from last week’s close, even as Brent futures dropped below $100/bbl on global economic
concerns.
April bids and offers were at
$1,300-1,320/tonne this morning following an unconfirmed deal
on 15 April at $1,300/tonne. The market for May has held a
steady $10/tonne contango over the current month, while June
was talked even higher at $1,315-1,345/tonne CIF ARA.
Europe benzene had already started to see
some upward gains last week on higher US
numbers, although prices in the region have idled so far this
week.
“A lot of it is down to the cracker
turnarounds,” explained one downstream source. “Demand for
benzene is not that great. It seems to be speculative, as it
is the traders who are most active.”
Meanwhile, the European styrene market is
still struggling with ample supply and weaker than expected
demand, which has kept some downward pressure on spot values
this week. Deals for April were done as low as $1,570/tonne
FOB (free on board) Rotterdam last week, but bids are
currently around $1,535-1,540/tonne.
“Demand is disappointing from a lot of
different angles,” said one styrene trader. “PS
(polystyrene), EPS (expandable polystyrene). UPR
(unsaturated polyester resins) is okay but that
is only a small sector.”
This was confirmed by one major EPS producer, who added
that the market is reaching the point where EPS becomes
comparative to alternatives such as Rock Wool.
“The sentiment from the buyers for the
styrene CP [May barge contract price] will be down
€20-30/tonne plus any movement in feedstocks,” the producer
said.
($1 = €0.77)
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