Europe October benzene contract confirmed at €926/tonne

LONDON (ICIS)–The European October benzene contract has been confirmed at €926/tonne, down €51/tonne from the previous month, as the initial settlement received further support from players on Tuesday.

The contract was agreed at a US dollar concept of $1,254/tonne FOB (free on board) NWE (northwest Europe) and converted to the euro price at the agreed exchange rate of €1:$1.3542.

European benzene spot numbers have gradually edged down throughout September, the decrease supported by lower Asian and US pricing as well as recent losses on crude oil futures.

“The outlook for benzene has been very unclear,” said one aromatics trader. “Phenol demand is still poor, and we have seen the expected downward correction on styrene now.”

Following the €35/tonne reduction for ethylene this month, European styrene players are braced for a decrease on the monthly barge contract in October purely on a feedstock basis.