Europe February benzene confirmed at €1,055/tonne

LONDON (ICIS)–The European benzene settlement for February has been confirmed at €1,055/tonne, up €61/tonne from the previous month, as the initial settlement reported late last week received further support from players in the market.

The contract was agreed on Friday 31 January at a US dollar concept of $1,432/tonne FOB (free on board) NWE (northwest Europe) and converted to the euro price at the agreed exchange rate of €1:$1.3573.

An increase had been expected in line with spot market gains over the course of January, where prompt tightness pushed the European market up to record levels, with deals done as high as $1,560/tonne CIF (cost, insurance & freight) ARA (Amsterdam-Rotterdam-Antwerp) .

Although prices subsequently eased off and moved as low as $1,390/tonne, some continued short covering and a rallying in the market last week helped push prompt February spot levels well above $1,450/tonne by the end of January.

The outlook beyond the February contract and the rest of the first quarter remains unclear, with some players expecting further price volatility and short covering while downstream markets continue to struggle amid modest demand levels, squeezed margins and bearish macroeconomic signals.