Japan's JX Nippon settles Feb benzene ACP lower at $1,350/tonne

30 January 2014 02:57 Source:ICIS News

SINGAPORE (ICIS)--Japan's JX Nippon Oil & Energy Corp has settled late on Wednesday its February benzene Asia Contract Price (ACP) at a slightly lower level than January, tracking the spot price movement, a company source said.

The February ACP settlement stood at $1,350/tonne CFR (cost & freight) Asia, down $3/tonne from January and $40/tonne lower than February nomination level, the source said.

The average of the daily spot benzene prices dated 27-29 January was at $1,323/tonne FOB (free on board) Korea, while the average of the daily spot prices dated 23-29 January was at $1,330/tonne FOB Korea, according to ICIS.

This was in contrast to the average of the daily spot prices dated 2-29 January at $1,343/tonne FOB Korea, as prices were escalating in mid-January, according to ICIS data.

“The lower [February ACP] settlement was a reflection of the softer [spot] prices towards month-end,” a ACP buyer said.

A decline in the spot benzene prices towards the end of January was a consequence of lower overseas prices amid battered sentiment, stemming from a decrease in the domestic China market on 26 January by yuan (CNY) 200/tonne ($33/tonne), players said.

Typically, discussions on a CFR Asia basis are priced at a premium of $20-30/tonne to FOB Korea quotes, the players added.

By Ong Sheau Ling