US benzene prices slide, tracking global downtrend

Zachary Moore

26-May-2017

HOUSTON (ICIS)–US spot benzene prices came down in the week ended Friday, tracking softer prices in Europe and Asia as well as an early week drop in Asian styrene prices. Spot benzene also closely tracked fluctuations in crude oil markets over the week. NYMEX crude ended the week down 1.1% following a volatile trading week.

Liquidity was limited on the week, resulting in fewer confirmed deals compared to the past few weeks. Sources partially attributed thin trade to the fact a number of market participants were away from their desks attending an industry event.

US styrene exports began to pick up late in the week, with around 20,000 tonnes of US styrene exports heard fixed to Europe for late May and early June this week. The pick-up in export demand helped push styrene prices up and may encourage higher operating rates in the coming weeks.

Other major benzene derivatives such as phenol and methyl di-p phenylene isocyanate (MDI) continue to see healthy demand, according to sources.

The spread between styrene and benzene widened this week following 10 consecutive weeks of a narrowing benzene-styrene spread. The spread between the two aromatics rose to a three week high of 10.91 cents/lb, up from 8.15 cents/lb in the prior week.

US benzene was assessed on Friday at $2.60-2.64/ gal DDP (delivered, duty paid), compared to $2.78-2.85/gal DDP at last week’s close.

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


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