Europe February benzene CP confirmed at €1,040/tonne
Truong Mellor
01-Feb-2013
LONDON (ICIS)–The European February benzene contract was
agreed at €1,040/tonne, down €113/tonne from the previous
month, as the initial settlement received
further support from players on Friday.
The initial number was heard from one seller on Thursday 31
January and was later confirmed by numerous other parties.
“I have agreed €1,040/tonne with all of my suppliers except one,” said one buyer.
Following the record-high settlement of January
in dollar terms, some downward correction was expected for
February. Spot values have gradually eased over the course
of the month, as prices in the US have slipped on improved
availability and softer Asian pricing.
February spot deals were done this week between
$1,395-1,410/tonne, with values coming off as the week
progressed in line with the softer US numbers.
Despite the sizable drop for February, there is still a
relatively bullish outlook on benzene due to ongoing
feedstock restrictions, a dynamic that looks set to continue into 2013.
Sources said that January was a strange month, with price
volatility being driven by various competing factors.
Upcoming shutdowns on key derivative markets like styrene and
phenol are likely to slow benzene consumption down in Europe,
which may help improve availability.
The February contract was agreed on a US dollar concept of $1,408/tonne FOB (free on board) NWE (northwest Europe) and converted to the euro price at the agreed exchange rate of €1:$1.3538.
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