The Northwest European benzene market is likely to remain supported in August despite the sharp fall in upstream markets over the last two days, as per Platts. Since trading at US$1322/mt for 1,000 mt CIF ARA August barges Tuesday, prices have dipped by a minimum of US$52/mt due to a steep fall in crude and naphtha prices. H1-August market was at a bid-offer range of US$1250-1275/mt on Friday morning, with any-August marginally lower at US$1240-1270/mt. Sources opine that the market is well set to retain some strength.
The spread between benzene and European naphtha remained in the US$330's, well above the break-even point for production (around US$250/mt). Traders said fundamentals were currently supportive of benzene pricing, with August believed to be balanced to tight. For August, traders would look to squeeze those participants with short positions, having accumulated length over the previous weeks. Whether this could be achieved appeared to depend on buyers stepping forward from industry. Many sources believe that industry's inventories are low, while traders have product in tank.
08-Aug-11 
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