Europe April benzene settlement confirmed at €745/tonne

03 April 2017 13:03 Source:ICIS News

LONDON (ICIS)--The European benzene contract for April has been settled at €745/tonne, a decrease of €192/tonne from the previous month, as the initial settlement heard last week received further support from players on Monday.

The settlement was agreed at a US dollar concept of $800/tonne and converted to the euro price at an agreed exchange rate of €1 to $1.0737.

A large decrease had been expected for April, as European spot numbers dropped significantly over the course of March in line with falling global benzene prices.

The outlook for regional demand in April and the rest of the second quarter is mixed overall. There is a major downstream phenol shutdown scheduled for April that was brought forward from May, and talk that at least one styrene unit will come down for maintenance later in the month.

With the summer months approaching, output from refineries and reformers should see an upturn, with higher oil and gasoline numbers and healthier seasonal fuel demand.

This could support benzene supply, but the traditional shift among European cracker operators towards lighter feedstocks is likely to curtail pygas availability for benzene production.

By Truong Mellor