The European benzene market, which has been under pressure since the end of April amid lower prices in Asia and the US on a weak outlook for derivative styrene, has hit a 21-week low versus toluene.
Meanwhile, European toluene prices have proven resilient to lower prices in other regions and an overall bearish crude oil complex since the beginning of May.
Strong downstream demand in Europe and minor production issues around the continent have been seen as supportive to toluene in Europe, sources said.
Benzene was assessed at a $133.50/mt premium to toluene Tuesday, its lowest since December 20, S&P Global Platts data showed.
The European spot price of benzene was assessed at $753.50/mt CIF ARA Tuesday, down $57/mt day on day. The toluene spot price was assessed at $620/mt FOB ARA, up $1/mt.
That meant most toluene-to-benzene conversion processes were uneconomical, considering spot prices.
Conversion processes need a benzene premium to toluene of $150-$200/mt to break even, according to industry estimates.
