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Spot NWE benzene prices gain $10/mt as buyers return to market

https://www.chemnet.com   Aug 04,2010
Spot Northwest European benzene prices gained around $10/mt as the market
traded upwards with buyers returning to the spot market Tuesday morning.


The September market was heard traded twice at $935/mt and $945/mt for
1,000 mt CIF ARA barges, with Vitol and Mitsui confirmed as the buyers.


There were also unconfirmed reports of any-August also trading at $945/mt
and both markets were reported at a bid/offer range of $940-950/mt.


According to Platts data, August barges for Monday were valued at
$935.50/mt. September was assessed at $930/mt.


Although the any-August and September markets were seen as flat in
structure, the overall value for August was potentially higher, with sources
saying that H1 could command a premium of $10/mt to the any-August laycan.


Offers for H1 August were seen at $960/mt, according to one trader,
although no bid levels were seen.


Price rises were supported by a continuing rise in the energy complex
with ICE Brent for September pushing up above $81/barrel. One trader also felt
that buyers returning to the market was helping push benzene levels higher.


"There seems to be mainly short covering on the back of global economic
and aromatics strength," the trader said.


He added that the settlement of the August contract price had also
brought buyers back to the market.


Although an initial August CP settlement had been confirmed done at
$873/mt FD NWE late Friday, some consumers were reported to have not settled
at that level. This appeared to have been resolved by Tuesday morning.


"I hear that only one consumer hasn't agreed at $873/mt," a trader said.
"They are saying they agreed $870/mt."


But this had not been confirmed by parties involved in the settlement.
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