US spot benzene lower in quiet market

HOUSTON (ICIS)–US spot benzene prices were assessed lower on Friday in a quiet market ahead of a major US holiday.

Little business was heard in the market early this week, but offers and sentiment declined leading into the Thanksgiving holiday, with several participants out of the market.

Despite this week’s drop, US spot benzene prices have been higher in November than in late October, putting upward pressure on the December contract settlement.

US benzene contract prices are typically settled on the last day of the prior month and generally follow direction from spot prices in the week prior to the settlement.

In the week prior to the November settlement, spot prices ranged $2.14-2.17/gal FOB (free on board). Strong demand and tightening supply have pushed benzene values higher in November.

US spot benzene was assessed on Friday at 2.27-2.30/gal FOB (free on board), compared with $2.35-2.40/gal FOB a week ago.

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