Europe spot benzene firms for August
Truong Mellor
14-Aug-2013
LONDON
(ICIS)–European benzene spot numbers have gained ground this
week amid a growing sense of tightness and firming prices in
the US and Asia, sources said on Wednesday.
After opening the week around the $1,250/tonne
(€938/tonne) level, August spot deals were later done at
$1,275/tonne and $1,280/tonne CIF (cost, insurance
& freight) ARA (Amsterdam-Rotterdam-Antwerp) as
the market rallied on some renewed buying interest.
September held a slight contango still, with a deal
done early in the week at $1,270/tonne before
offers moved as high as $1,290/tonne.
By Wednesday 14 August, spot values for
August were at $1,270-1,285/tonne while September remained
slightly firmer at $1,280-1,290/tonne.
The European benzene market saw some
downward movement on spot pricing earlier in the month, but
has since started to show signs of recovery as the US market
picks up. Ongoing macroeconomic
uncertainty amid oil and energy losses last week kept
sentiment bearish to a degree, although some gains on naphtha
helped reverse some of the earlier losses.
Some gains on crude oil futures so far
this week have also helped support the current upward
momentum on spot benzene, with Brent pushing up over
$109/bbl.
Looking ahead, the European market is
increasingly bullish into the back end of 2013, with some
scheduled cracker shutdowns planned for the second half of
the year potentially leading to feedstock supply disruption,
in what remains a structurally tight global market.
Traders said there is a sense that prompt
availability could tighten ahead of September, with some
players looking to cover themselves ahead of the cracker
turnarounds later in the year.
July was a comparatively weak month for European
benzene, with spot prices reaching a yearly low of $1,210/tonne CIF ARA on
seasonally slow demand and the arrival of up to 30,000 tonnes
of imported material from South America and the US Gulf
region.
The European August benzene contract was agreed at a US dollar concept of
$1,257/tonne FOB (free on board) NWE (northwest Europe) and
converted to the euro price of €946/tonne at the agreed
exchange rate of €1:$1.3288.
($1 = €0.75)
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