ARA-US Gulf benzene arbitrage closes as supply tightens

14-Apr-15

The benzene arbitrage from the Amsterdam-Rotterdam-Antwerp region to the US Gulf closed as supply length in the European benzene market shortened on the back of previous exports to the USG, as per sources in Platts. The benzene market has seen ample supply since the beginning of 2015 amid a combination of high cracker run rates and turnarounds at downstream styrene monomer units. "Supply is gradually getting tighter. It's still easy to get material, but with all the exports, it is becoming a little more balanced," as per a source. The same source also said there was a demand gap left by turnarounds at downstream styrene monomer production plants which would be filled once styrene units come back online in the second quarter. Another source estimated approximately 30,000-40,000 mt of material has already been exported out of the region this month.