Prices of benzene in Asia tanked on Wednesday. Prices tumbled on bearish cues from the US markets. Although concerns regarding aromatic plant shutdowns in Japan post last week’s earthquake and Tsunami continued to cause underlying worries about supply disruptions, the steep 12 cents/gallon fall in US benzene rates, held centre stage.
FOB Korea prices of benzene were assessed at the USD 1180/mt levels, a day on day fall of USD 30/mt. Buyers polled said that they were unlikely to buy at these levels following the plunge in US benzene rates.
A benzene trader a polymerupdate team member spoke with said, “ Asian demand for benzene softened on Wednesday. The ongoing turnarounds at downstream SM facilities supported the call to avoid benzene purchases. With limited opportunities to ship Asian benzene to the west at current levels, the buying interest has further waned. Moreover, the arbitrage window between South Korea and the US remains shut. We therefore believe that benzene prices need to correct further lower. This morning, bids have further dropped following the overnight drop in benzene rates in Europe.”
