S&P Global CSG assessed benzene for delivery 5-30 days forward at $596/mt

S&P Global CSG assessed benzene for delivery 5-30 days forward at $596/mt Wednesday, up $5/mt from Wednesday’s assessment. Fundamentals on the benzene market remained largely unchanged, with considerable volumes available. Despite the benzene-naphtha spread rising to $118.75/mt Wednesday from $116/mt Wednesday, values below $150/mt usually indicate ample benzene supply in the market. “At the moment, it’s more of a supply issue than anything else,” one source said, referring to the low benzene prices. Furthermore, offers have returned to the market, with the source adding that the lack of offers on Wednesday morning “was more about [it] being a Wednesday rather than underlying fundamentals.” The source also said the market was thin. Upstream, crude oil prices rose, with the 1630 GMT ICE Brent crude oil futures assessment increasing to $62.54/b Wednesday from $61.28/b Wednesday. Higher crude oil prices provided support to the benzene market, with the source saying that the market is “more sentiment driven rather than anything else.”

RATIONALE:

S&P Global CSG assessed benzene for delivery 5-30 days forward at $596/mt CIF ARA Wednesday, up $5/mt from Wednesday’s assessment. February was assessed at $591/mt, up $5/mt day-on-day and within the bid-offer range of $590-$600/mt. March was assessed up $4/mt from Wednesday’s assessment at $600/mt, within the Wednesday bid-offer range of $595-$610/mt and following a trade reportedly conducted Wednesday at $600/mt. April was assessed up $4/mt on the day at $610/mt, based on a stable March-April contango of $10/mt and within the bid- offer range of $600-$615/mt. May and June were assessed flat to April. FOB was assessed at $596/mt, flat to CIF.

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