US February benzene contracts settled 11 cents lower than January at $3.11/gal, or $930/mt, sources said Wednesday.
Market participants anticipated a settlement around this level after February pricing had been around this level during the end of January.
Supply and demand fundamentals were mostly balanced at the moment amid import arrivals from Asia and derivative styrene turnarounds, a source said.
Arbitrage opportunities to the US have been limited since mid-November, based on S&P Global Platts data. There are bullish expectations in the market for March benzene pricing as a result.
“Styrene maintenance will come to an end toward the end of February and benzene demand will strengthen,” a source said, adding the US could only have low imports for so long.
Benzene contracts previously settled for January at $3.22/gal.
Spot pricing for February was last assessed Tuesday at $3.10/gal FOB US Gulf Coast and $3.08/gal DDP USG, based on S&P Global Platts data. –John Calton.
- Platts.com
