Northwest European benzene exports to the US Gulf fell 17.5% month-on-month to 15,105 mt in July, latest Eurostat data showed, despite an open arbitrage on higher imports from Asia.
Europe exported 18,313 mt of benzene in June. Year-to-date export volumes were also 8.13% lower at 108,360 mt, compared with 117,944 mt exported by Europe to the US Gulf in the January-July period in 2013.
The decline came on a sharp rise in Asian exports of benzene to the US Gulf, following the startup of several new plant capacities in South Korea.
South Korea’s benzene exports surged to an all-time high of 169,453 mt in July, according to the country’s customs data going back to 2006
South Korea’s benzene exports to the US in that month spiked 29.8% month-on-month to 42,960 mt.
The country saw the start up of three new paraxylene-benzene plants at Ulsan, Daesan and Incheon over the last two months, pushing up benzene exports as a result.
A total of 1.17 million mt/year of new benzene capacity was brought online by SK Energy, JX Nippon Oil and Samsung Total’s new aromatics plants in June-July.
Market sources in Europe said that over the long-term, the NWE benzene market would see sustained lower levels of demand from the US Gulf as the burgeoning length in Asia from the startup of new capacities could plug most of the US Gulf’s requirements.
“Europe could be displaced altogether by Asian product going ahead,” said a source. “For the moment benzene has always been supply driven and there are not many places to go in Europe, mainly the Mediterranean and there was no need for many homes because there was not too much product.”
– Platts.com
