US benzene contracts for Nov settle higher on supply limitations

31 October 2017 21:06 Source:ICIS News

HOUSTON (ICIS)--US benzene contracts for November settled 10-12 cents/gal higher than the October settlement on Tuesday.

Photo by Cultura/REX/Shutterstock

November benzene contract prices were agreed at $2.84-2.87/gal FOB (free on board) US Gulf, compared with $2.74-2.75/gal for October.

The settlement was in line with expectations earlier in the week calling for a settlement of around $2.85-2.86/gal.

Spot prices posted gains during the month of October as an unexpected drop in refinery operating rates mid-month resulted in a shortage of material.

Prices for prompt cargoes continued to firm at the start of the week.

October spot trades were seen last week at $3.02-3.07/gal delivered duty paid (DDP), while bids and offers for November shipments seen earlier on Tuesday at $2.93-3.20/gal.

The European benzene contract for November had settled with an increase of€31/tonne on Monday.

The European market has found support from the strong US market, with European suppliers concluding deals to export more than 25,000 tonnes of benzene from Northwest Europe to the US Gulf.

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By Zachary Moore