High spot demand for benzene has lifted Northwest European spot prices to a 6% premium over the $590/mt February contract price, sources said Wednesday, attributing the rise to gains in the energy complex.
“Benzene is simply following energy up. Crude is going up and Europe benzene is going up,” one source said.
With the Northwest European February benzene contract price at $590/mt CIF ARA and spot prices assessed at $626/mt CIF ARA Tuesday, the spot market was $36/mt higher than the CP.
The last time the spot market was higher than the contract price was October 8 when spot prices were $1,355/mt and contract prices $1,327/mt.
During January, spot prices averaged a discount of $98/mt to the $693/mt contract price, according to Platts data.
One trader source reported several trades in a $605-630/mt range Tuesday.
“When there is an expectation of higher prices, people will try to buy prompt when it is cheaper…this is creating the price movements in the spot market,” the source said.
– Platts.com
