EU benzene exports to US in July plunges 17.5% amid sharp rise in Asian exports

17-Sep-14

Despite an open arbitrage on higher imports from Asia, benzene exports from NW Europe to the US Gulf fell 17.5% month-on-month, latest Eurostat data showed, as per Platts. Exports from Europe fell to 15,105 mt in July from 18,313 mt 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. South Korea's benzene exports to the US in that month spiked 29.8% month-on-month to 42,960 mt. Start up of three new paraxylene-benzene plants was seen at Ulsan, Daesan and Incheon over the last two months, pushing up benzene exports as a result. A total of 1.17 mlnn 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.