Spot Northwest European benzene prices strengthened further at the end of last week, with further evidence of a widening spread between upstream naphtha and benzene, as per Platts.
August deal was reported at US$1175/mt for a 1,000 mt CIF ARA barge late Thursday. Spot prices for July were seen at a bid/offer range of US$1160-1175/mt for 1,000 mt CIF ARA barges while August moved up to US$1165-1190/mt.
The current August bid level compared to a European open-spec August naphtha value of around US$970/mt CIF NWE. This gave a minimum spread of US$195/mt for August. Late Thursday trade of US$1175/mt suggested that the spread is currently above US$200/mt, the level considered a break-even point for European production economics.
Prices are estimated to continue to climb, and despite consistent reports of a supply overhang in Europe, the market seems to be tighter than some people believed. Another source dismissed this view, arguing that the European market was still fundamentally long.
18-Jul-11 
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