US spot benzene fell 13 cents Tuesday, reaching a 28-month low assessment at $3.82 cents/gal DDP US Gulf Coast.
Spot pricing has not been seen below this level since June 4, when it was assessed at $3.77/gal DDP USG, according to Platts data.
Sources attributed declines to excess market supply as a result of shipment arrivals from Asia.
The US was having trouble absorbing those shipments because of weak demand downstream and product sitting on the water, sources said.
The shipments were fixed from July through August, when higher US prices opened arbitrage opportunities for Asian suppliers.
These cheaper benzene levels could spark activity in derivative styrene, sources said.
Market participants expect more benzene to arrive from Asia this month and in November.
The market was last heard bid at $3.79/gal and offered at $3.85/gal on a DDP basis.
– Platts.com
