US spot benzene market values could be facing a sharp decline during Q1-2014 amid upcoming derivative styrene turnarounds and shipments from Asia, as per market sources in Platts. A similar situation was seen in the US benzene market during Q1-2013 when prices were pressured lower by styrene producer turnarounds. As seen in Q1-2013, normal consumers of benzene could become sellers during their turnarounds, weakening demand and lengthening market supply. In addition to the upcoming turnarounds, Cosmar, a joint venture between Total and Sabic, took a styrene unit at its Carville, Louisiana, facility down for a 2-3 week unplanned maintenance on Monday.
Supply tightness could also be eased amid benzene shipments from Asia arriving during H2-February, sources said, adding that arbitrage opportunities are currently attractive. Currently, higher US spot benzene pricing has been supported by limited supply availability, sources said.
US spot benzene was last assessed Tuesday at US$4.93/gal FOB US Gulf Coast for January. Bids and offers for January were absent Wednesday morning.
13-Jan-14 
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