The Asian benzene-naphtha spread widened to hit a two-year high on Wednesday when it was assessed at $387.50/mt, wider by $37.375/mt day on day, amid surging benzene.
The spread was last wider at $390.125/mt on November 11, 2014, S&P Global Platts data showed.
Asia benzene jumped $32/mt day on day to be assessed at $846/mt FOB Korea Wednesday, while benchmark Mean of Platts Japan Naphtha was assessed at $460.50/mt Wednesday, down $5.375/mt from the day before.
Over the past month, FOB Korea benzene has risen 26.8% while feedstock naphtha prices only increased 10.6%.
Industry sources said that benzene prices in Asia were mainly supported by strong Chinese demand while spot supply was limited in the FOB Korea market.
Production of benzene was expected to be stable as producers were likely to keep refinery output high, said another market participant.
Refineries typically expect a breakeven spread of $120-150/mt to maintain high operating rates.
In addition, more benzene supply could be expected from secondary production plants such as toluene disproportionate units that are likely to be operated at full capacity as margins were high, a trader said.
