Europe spot benzene firms ahead of September contract price
Truong Mellor
27-Aug-2013
LONDON
(ICIS)–European benzene players are braced for a minor
increase in the September monthly contract later this week,
as spot numbers have gradually edged up over the $1,300/tonne
(€975/tonne) mark towards the end of August.
The August settlement was agreed at
€946/tonne, initially done at a US dollar concept of
$1,257/tonne FOB (free on board) NWE (northwest Europe) and
converted to the euro price at the agreed exchange rate of
€1:$1.3288.
Prompt spot numbers were largely
rangebound last week, with the holiday period and some
ongoing length for August stalling the upward momentum seen earlier in line
with gains seen in both Asia and the US.
However, the spot market opened the week firmer,
with September cargo valued at $1,295-1,315/tonne CIF
(cost, insurance & freight) ARA
(Amsterdam-Rotterdam-Antwerp).
September eventually traded at $1,305/tonne, while
October moved higher following a deal done at
$1,315/tonne.
“I would expect a settlement around
$1,290-1,295/tonne for September, unless oil goes up
further,” one industry player said this morning.
While July saw the European spot market
hit yearly lows on weak demand and good
availability in Europe owing to imports, sources agree that
the market is looking increasingly tight for September and
beyond.
With the US now driving the global market
direction, this means that material is likely to flow into
the region as opposed to Europe. Current US spot numbers are
around the $1,320/tonne level, with turnarounds in September
and October poised to keep availability limited and prices
bullish.
Asian prices are also firming ahead of
September, supported by strong downstream styrene monomer
numbers this month and buoyant crude futures.
($1 = €0.75)
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