Europe benzene December, January spot prices spike 15-18%
Mark Victory
18-Dec-2014
LONDON
(ICIS)–European benzene December and January spot prices
spiked 15-18% on Thursday morning amid a flurry of overnight
deals.
Several January deals were reported by
buyers at $700-725/tonne CIF (cost, insurance and freight)
ARA (Amsterdam, Antwerp, Rotterdam), while a December deal
was reported at $690/tonne CIF ARA.
Offers continued to firm in the morning session with December
rising to $690-740/tonne CIF ARA, and January at
$700-740/tonne CIF ARA.
At 17:00 GMT yesterday, benzene December was trading at $600-630/tonne CIF ARA and January was at $600-620/tonne CIF ARA. This represents a 17-19% rise.
The increase was driven by rising crude oil prices,
talk of production problems at a major European producer –
although this could not be immediately confirmed – and US
benzene markets opening firmer.
“I think crude could be a reason, US
opened stronger, some rumours of production problems. People
thought it could be the tunaround,” a buyer said.
As a result, a flurry of industry buying
activity took place, creating a spike in prices.
Nevertheless, spot prices still remain well below the
December contract price, which was
$960/tonne FOB (free on board) NWE (northwest
Europe).
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