US August benzene contracts decrease with lower spot prices

US August benzene contracts settled lower, tracking lower spot prices in late July.

Contracts decreased 13 cents/gal ($69/tonne) from July to $2.54/gal FOB (free on board) in the US Gulf.

Spot prices declined at the end of July amid easing supply concerns stemming from steady imports, narrowing the intermonth backwardation between current- and forward-month material.

A similar volume of imports is expected in August, putting downward pressure on the market.

US benzene contracts typically settle on the last working day of the prior month and are largely determined by the average spot price over the last 10 days of the month.

Benzene is used to produce a number of intermediates that are used to create polymers, solvents and detergents.

Major producers of US benzene include ExxonMobil, Marathon Petroleum, Shell, Flint Hills Resources, Chevron, CITGO,  LyondellBasell, Valero and Total.