London — Export demand has prevented a fall in European benzene spot prices despite length in the market, according to sources this week.
The 5-30 day forward benzene spot price was last assessed Thursday at $872.50/mt CIF ARA, up from $862/mt a week ago.
Spot benzene has risen in the past week despite a decline in upstream crude oil prices and continued length in the market.
Benzene spot prices in the US have remained stable in the past week and this has sustained European prices, sources said, as traders looked to export product to the US.
"The only factor that prevented the [European benzene] price from falling lower is US prices rising," a sources said on Friday.
The European benzene market has been long in the past few weeks as problems in the downstream styrene market hampered demand.
LyondellBasell and Covestro's jointly owned Maasvlakte propylene oxide styrene monomer facility in the Netherlands suffered a problem on August 1. This contributed to a reduction in benzene demand.
Export interest to the US also led to a fall in the contango structure as prompt prices rose.
On Thursday, the contango between August and September was calculated at $6.50/mt, down from $12/mt last Thursday and $16/mt earlier in the week.
