US benzene spot values widen amid long supply, volatile crude

HOUSTON (ICIS)–US prompt spot benzene prices were assessed wider on Friday as upstream crude volatility and long supply pressured the market.

Spot benzene prices tracked a sharp decline in upstream crude values early in the week. As crude values recovered at mid-week benzene values were slow to follow, with long supply putting downward pressure on US benzene.

Benzene spot values dropped last week as increased imports strained local inventories.

The increase in imports is largely due to outages globally in downstream styrene plants, leaving a significant volume of benzene available for export to the US.

Market sources expect styrene plant restarts to pull length out of the benzene market in June or July.

On Friday, US spot benzene was assessed at $2.41-2.54/gal FOB (free on board), compared with $2.47-2.53/gal FOB the previous week.

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