Europe Sept benzene CP confirmed at €1,039/tonne

LONDON (ICIS)–The European benzene contract for September has been confirmed at €1,039/tonne, down €43/tonne from the previous month, as the initial settlement heard late last week received further support from players on Monday.

The September settlement was agreed at a US dollar concept of $1,369/tonne FOB (free on board) NWE (northwest Europe) and converted to the euro price at the agreed exchange rate of €1:$1.3176.

Some downward movement for September had been expected, with spot deals done last week within a range of $1,355-1,377.50/tonne. The August settlement was agreed at $1,450/tonne FOB NWE.

US prices have moved lower in recent weeks due to some aggressive selling and lower energy futures, as well as more imports from Asia helping redress the regional tightness.

The outlook for September and the rest of the year is uncertain, with sluggish derivative sentiment counteracted by some cracker turnarounds in Europe and one major benzene shutdown in the US all beginning this month.

However, the US styrene market is also facing several turnarounds, which will likely mitigate any upward impact on pricing due to supply restrictions on benzene.