Benzene falls in Asia on Brexit vote, but stabilizes in Europe

27-Jun-16

Benzene prices in Asia fell on uncertainty following the UK's decision to vote to leave the EU. However, European prices have stabilized during the course of the morning, as per Platts. The benzene FOB Korea price was assessed at US$607/mt Friday, down US$8/mt on the day, tracking weaker crude oil prices as the result of the Brexit referendum became apparent. The European benzene market opened on a bearish note, with bids fell to a range of SUS$625-630/mt. This was about US$15/mt down on the day, according to a source.

On Thursday, trades were heard for June at US$640/mt and July at US$645/mt, showing a fall in benzene value in Europe Friday morning. However, during the first few hours of European trading, benzene bids have increased to levels similar to Thursday. July was heard traded at US$640/mt, showing a mild US$5/mt fall from the traded value on Thursday. The bid-offer range for July was last heard outstanding at US$640-645/mt. In the downstream styrene market, prices were largely unchanged and bid-offer ranges were heard at US$970-1010/mt.
Although prices were stabilizing in Europe, a feeling of uncertainty continues to loom further upstream in the crude oil market, which could dampen sentiment in the benzene market in the afternoon.