Styrene monomer in Asia rises in line with higher energy, benzene prices

14-Jun-12

Benzene in Asia gained US$19.50/mt from June 8 to US$1033/mt FOB Korea June 11, on expectations that US benzene prices will stay firm due to supply tightness and stronger crude oil prices, as per Platts. "I heard that there are delays in benzene shipments to the US, [which] are causing prompt [US benzene] prices to be firm," a South Korean trader said. "Hence, there will be demand for prompt Asian benzene cargoes, because traders would try to ship them to the US.” In the US, benzene for June was assessed at US$1285/mt FOB USG June 8. The European price was assessed at US$1365/mt CIF ARA. July ICE Brent crude was assessed at US$100.43/barrel, rising by US$3.10/bbl from June 8, while CFR Japan naphtha was assessed at US$776/mt, up US$31/mt. The Asian paraxylene market finished at US$1225/mt CFR Taiwan/China June 11, rebounding US$7/mt from June 8 following a US$40/mt day-on-day collapse. A positive sentiment spread through the Asian PX market June 11, lifted by firmer crude oil futures as well as downstream purified terephthalic acid prices. On June 11, CFR China PTA price was assessed at US$916/mt, up US$5/mt from June 8. Asian styrene monomer for H2 July was assessed up US$8/mt from June 8 to US$1239/mt FOB Korea, tracking higher energy and benzene prices.