The Northwest European benzene contract price looked set to have two values for January as various counter parties involved in contract price discussions confirmed settling at different price agreements Thursday evening.
January CP's were initially agreed at both Eur860/mt, or $1,108/mt, and Eur865/mt, or $1,115/mt, December 30 market sources confirmed. The contract price is considered fully settled when two separate producers and consumers confirm settling at the same price.
Since the initial settlement, two producers have confirmed settling at the lower level, with three producers agreed at the higher price.
On the buy side, there have also been two confirmations from customers at Eur860/mt and $1,108/mt -- with one producer saying he expected to settle at that level with a third consumer this week -- while at least two consumers have also confirmed settling at Eur865/mt and $1,115/mt.
One consumer even confirmed settling contracts with "different producers" at both price levels.
With both CP's getting the required level of counter party support the benzene market has been left in stalemate, according to sources.
One consumer said: "At the beginning of the week, there were people looking for an agreement over the numbers, but I can't see that happening now. Those producers who have settled at higher levels won't move down and the consumers at $1,108/mt aren't going to move up."
A producer added: "It's my understanding that there are equal amounts on both sides, but for me the higher level is completely representative."
The split in the contract discussions is an unusual situation for the NWE benzene market, where the contract settlement is usually agreed in a timely and disciplined fashion.
Some sources believed that winter holiday was a cause of the confusion, with many parties away from their desks or negotiating the settlement while on vacation.
