The spot US benzene price declined 12 cents Thursday to reach a 10-month low at an assessment of $4.10/gal FOB US Gulf Coast as sentiment remained bearish on weak demand and expectations that the market is set to be flooded with supply, sources said.
The last time spot benzene was any lower was on November 11, 2013, when it was assessed at $4.09/gal FOB USG.
Demand for US benzene derivatives styrene and phenol has been slow amid limited arbitrage opportunities and unattractive production costs due to higher spot benzene prices in July and August, sources said.
Market participants anticipate 50,000 mt of benzene imports will arrive at US ports in September and a combined 250,000 mt in October and November. Unless there is some type of change in downstream demand, the market will have a hard time absorbing this supply, sources said.
US spot benzene pricing has fallen a total of 98 cents ($293.31/mt) since August 14, according to Platts data.
– Platts.com
