EU's benzene net imports for May rise 34.3% year on year

17-Jul-14

The European Union's net imports of benzene grew 34.3% year on year to 92,972 mt in May 2014, following a significant drop in exports, Eurostat data was reported in Platts. Over the first five months of the year, EU's net imports totaled 263,244 mt, a 48.3% year-on-year increase. There was a significant uptick in imports and a reduction in exports in May compared with previous months. Benzene exports dropped to just over 4,000 mt, with just about all of it going to the US. Benzene imports rose to 97,038 mt in May, up by 24.1% year on year and almost double imports in April. Europe became the highest-priced region in April and in H2-May, month the reverse cross-Atlantic arbitrage opened. Light cracking and previous shipments out of the region left Europe scrambling for molecules, and parcels from Americas and Asia headed there to fill the gap. The main recipients of benzene within the EU were countries in the Mediterranean region, with Spain and Italy taking over 70,000 mt. Imports into the ARA region were just under 20,000 mt. India (17,847), Turkey (13,509 mt), the US (12,905 mt), Thailand (9,690 mt), Ukraine (8,398 mt), Canada (8,055 mt), Algeria (5,234 mt) and Brazil (3,708 mt)were the main suppliers of benzene to the region in May. Imports from Israel, which were cut in half in April following a fire at the Gadiv's Haifa plant, returned to normal levels in May. In fact, Israel was the second biggest supplier of benzene to the EU in May, exporting 14,989/mt. EU has a structural shortage of supply and is usually a net importer of benzene, with India, Israel and Turkey being usually its main suppliers, providing around 75% of total benzene imports to the block.