USG benzene spot prices gain ground, push above 240 cts/gal

14-Feb-05

USG spot benzene prices turned 180-degrees Wednesday, shrugging off recent heavy losses and trading back above 240 cts/gal for January liftings, sources said. A sharp decline early this week dragged benzene prices into the low 220s cts/gal range, but benzene spot prices changed course during the morning session in parallel with higher NYMEX energy prices. By 3:00 p.m. CDT, January spot benzene deals were heard done at 242 cts/gal and 245 cts/gal, the latter deal at least 20 cts/gal above the bid level at the close of Tuesday's markets. December benzene traded early in the day at 222 cts/gal, but trade was later heard at 229 cts/gal. Benzene market sources were trying to piece together the exact cause of Wednesday's run-up, and market sources disagreed on the overall impact higher crude oil prices made on benzene prices. NYMEX January crude futures rose $2.37/bbl to close at $44.19/bbl on the back of stronger heating oil. Separate to this, tightness in the global polycarbonate market and rising feedstock costs were cited by Bayer for a proposed E400 a tonne rise in the price of its Makrolon material for December.