European benzene spot prices rangebound despite bullish oil

European benzene spot prices have been rangebound this week, failing to react to a significant rise in the oil complex.

The 5-30 day forward benzene spot price was last assessed Thursday at $870.50/mt CIF ARA, and has been trending in the range $867-$870.50/mt this week, seeing minimal changes.

This is in spite of front month ICE Brent crude price reaching $74.73/b on Thursday, up from $71.83/b last Friday.Prices for naphtha have also come up in line with crude, with the CIF NWE naphtha price assessed Thursday at $644.75/mt, up from $621.75/mt last Friday.

Benzene demand has been uninspiring in Europe, especially for prompt dates.

An ongoing production issue at LyondellBasell and Covestro's propylene oxide/styrene monomer facility in Maasvlakte, the Netherlands continued to weigh on prompt demand.

In other downstream markets, plant run rates remained high in the phenol and acetone markets, driven by strong phenol demand. Nevertheless, this did little to push benzene spot prices significantly higher in line with crude.

Earlier in the month, there was talk of potential exports to the US from the EU. However, the arbitrage was seen narrow or closed this week.

The FOB USG September price was last assessed at 295 cents/gal ($882/mt) on Thursday.

The benzene market remained in a contango this week amid the expected restart of downstream operations and the pick up of business activity in September after the summer holiday period.