Europe spot benzene drops to seven-week low

LONDON (ICIS)–European spot benzene prices are at a seven-week low – at $1245-1255/tonne CIF ARA – largely as a result of falling crude, lower demand and a dip in US and Asian spot values, sources said on Friday.

“Europe moves down, so Asia and the US follows – it goes in a circle,” said one trader source.

Another aromatics trader said it had also seen spot benzene prices coming down this week.

“Buying is really hand-to-mouth and there is enough of it [benzene] around. [Name traders] all have storage and the Dow cracker is out so you would think there would be some length in the market,” the trader said.

Not a great deal of spot activity took place this week, with the only public trades done at $1,250-1,255/tonne CIF ARA for October.

The translates into a euro price of €925-929/tonne CIF ARA, which is €48-52/tonne below the September benzene contract price.

($1 = €0.74)