NWE Benzene – Trading thin as Easter approaches

Chemical Industry

– No bids or offers heard

– Crude bounces 20 cents/b

There were no reports of trading in the European benzene market on Wednesday. The  5-30 days forward assessment slipped $1 to $721.50/mt CIF ARA, based on the existing backwardation between April and May. Benzene trading has quietened down this week as public holidays around Europe approach at the end of the week for Easter celebrations. Bid and offer ranges heard at the tail end of last week were heavily bound to the upstream crude oil market, before disappearing on Wednesday. Crude prices slipped over the weekend, but bounced on Wednesday. The 16:30 assessment of ICE Brent crude was up 20 cents at $71.19/b. Margins for benzene against naphtha continued to rise on Wednesday, with the spread widening to $167.50/mt. The spread has gradually widened since the beginning of April, when the spread was $141.50/mt. Asian benzene was down $9.66/mt on the day to $628.67/mt for the FOB Korea marker.

RATIONALE:

S&P Global  assessed benzene for delivery 5-30 days forward at $721.50/mt CIF ARA Wednesday, down $1 from Wednesday due to a backwardated market. April was assessed stable at $731/mt with no disproving indications. May was assessed stable at $715/mt, based on a curve. First-half May was assessed stable at $716/mt. H2 May was assessed stable at $714/mt, both with no disproving indications. June was assessed at $699/mt, stable with no disproving indications. July was assessed at $698/mt, $1 under June. August was assessed flat to July. FOB was assessed at $721.50/mt, flat to CIF.

 

Chemical Industry
Chemical Industry

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