US Sept benzene expected higher ahead of upcoming turnarounds

29 August 2013 20:35 Source:ICIS News

HOUSTON (ICIS)--The US September benzene contract is expected to settle higher this week, following the recent run up in spot prices on the back of tight supply expectations ahead of turnarounds in September and October, trade participants said on Thursday.

Some market participants said they expect the September benzene contract to settle within a range of $4.40-4.42/gal ($1,317-1,323/tonne, €988-992/tonne), which is 23-25 cents/gal above the August contract price of $4.17/gal.

Current benzene spot prices are at $4.37-4.42/gal FOB (free on board), also well above the August contract price.

The US benzene market has been well supplied since January of this year, but market sources have inventory will be tight because of the upcoming turnarounds.

The benzene contract typically settles at the end of the month.

($1 = €0.75)

By Brian Balboa