Spread between naphtha and benzene falls to year low of US$150/MT

07-Dec-10

The spread between December Northwest European naphtha and benzene has dropped to US$150/mt as per Platts. Length in benzene has meant that strong crude-inspired gains in naphtha have not been passed through to benzene price as per Platts. Platts data shows that the assessed naphtha-benzene spread December 2 was US$150/mt. This appeared little changed despite ICE January Brent climbing above US$91/barrel, December benzene was seen stable at a bid/offer range of US$985-995/mt for 1000 mt CIF ARA barges. European open-spec naphtha was seen holding at a 26-month-high of around the US$840/mt CIF NWE for prompt cash barges, maintaining the current spread. This is the lowest naphtha-benzene spread of the year to date, and highlights the softening of benzene prices over Q4 and H2-2010. Platts data shows that the average naphtha-benzene spread for November was US$180.60/mt compared to US$211.52/mt in October. The average spread for H1-2010 was US$324.44/mt. Some sources have cited the comparatively low spread as a potential reason for a climb in the NWE price. Length in December was stopping benzene prices rising further and widening the spread, however.