Front-month US benzene average spot price in October rose 11%, or 48 cents/gal ($143.52/mt), from September to 486.25 cents/gal FOB US Gulf ($1,453.89/mt), Platts data showed.
The month-on-month increase is the second largest this year. In July, front month benzene spot price averaged 487.05 cents/gal ($1,456.28/mt) FOB, surging 66.10 cents/gal ($197.64) or 15.7% from June as supply tightened on production issues.
On a DDP basis, the October average price gained 42.2 cents/gal ($126.18/mt) month on month to 481.05 cents/gal ($1,438.34/mt)
October benzene spot price fluctuated wildly, hitting a historic high of $5.36/gal FOB ($1,602.64/mt) on October 19 but ended the month at $4.97/gal (1,486.03/mt). The DDP price also hit a record high that same day, assessed at $5.35/gal ($1,599.65/mt).
Market sources attributed the price swings to short covering by traders as Asian imports were delayed. More than 40,000 mt of Asian benzene was due to arrive in the second half of October, but shipments were postponed after Typhoon Bolaven ravaged the coast of South Korea in late August. South Korea is the largest benzene supplier to the US, accounting for around 14% of total US annual imports.
Benzene prices retreated amid resistance from styrene producers who cut operation rates and mulled selling their excess feedstock into the spot market.
In Asia, the October monthly average spot price was $1,258.31/mt FOB Korea, up $36.63/mt or 3% from September. European benzene fell in October, averaging $1,313.67/mt FOB Rdam, down $48.78/mt or 3.6% month on month.
SEP (cts/gal) OCT (cts/gal) Price change % change Benzene M1 FOB 438.25 486.25 48.00 10.95
Benzene M2 FOB 433.55 473.95 40.40 9.32
Benzene M1 DDP 438.85 481.05 42.20 9.62
Benzene M2 DDP 425.95 452.15 26.20 6.15
