US benzene contract down for third straight month in October

HOUSTON (ICIS)–The US October benzene contract has settled down by 47-48 cents/gal at $4.22/gal, according to trade sources on Wednesday. The settlement, which was confirmed late Tuesday, came alongside a recent decline in spot prices.

Dropping from the September split contract price of $4.69-4.70/gal FOB (free on board), the decline also represented the third consecutive decline in the benzene contract.

Participants had also been expecting a decline for the October benzene contract, citing the recent decline in spot prices brought on by lacklustre energy futures, improved supply availability for much of the month and weak demand from the downstream styrenics market.

The US benzene contract typically follows direction from the spot market. Current prompt benzene spot prices are at $4.19-4.20/gal FOB, down from the September contract price.

Major US benzene producers include ExxonMobil, Flint Hills, LyondellBasell, Marathon, Shell, and Phillips 66.