The January US benzene contract price was heard to have settled higher
this week, jumping 22 cents compared with December's contract price to
253 cents/gal, multiple sources told S&P Global Platts.
The increase was in line with market expectations as spot values were seen trading in the low-250s cents/gal.
Players said the market saw some support from supply-side tightness
associated with a decrease in benzene shipments from South Korea to the
US in the fourth quarter of 2019.
Between October 1 and December 20, South Korean benzene exports to
the US totaled just under 122,000 mt, according to Korea International
Trade Association statistics. By contrast, shipments in September
totaled 118,615 mt, according to KITA.
Despite the supply tightness, derivative demand from the styrene
segment has remained soft, with January styrene prices last assessed at
$825/mt FOB USG.
Styrene prices have received support associated with a cost push
from the benzene strength, sources said. Additionally, planned
maintenance by US styrene producers in the first quarter of 2020 was
expected to lend additional support for prices.
