US spot benzene recovers after six-year lows

HOUSTON (ICIS)–US spot benzene prices dropped to a six-year low this week before recovering on Friday to the high end of last week’s range.

US spot benzene opened on Monday with bids and offers at lows not seen since May 2009 in the wake of the Great Recession, although deals were heard at higher levels later in the day. Benzene had been responding to plummeting crude oil prices and a large drop in the stock market.

Upstream West Texas Intermediate (WTI) crude oil futures dropped below $40/bbl on Monday and remained volatile throughout the week, eventually recovering the early week loss and settling on Friday above $45/bbl.

Benzene spot values followed the volatility, with a deal heard at $1.88/gal DDP (delivered, duty paid) late on Wednesday, the lowest deal heard since May 2009, followed by deals later in the week at more than $2/gal.

US spot benzene was assessed at $2.09-2.15/gal FOB (free on board) on Friday, compared with $2.06-2.15/gal FOB a week ago.