Spot Northwest European benzene prices fell below $1,200/mt Tuesday morning, with product trading down as sellers stepped into the market, sources said.
After beginning the day at a bid/offer range of $1,200-1,210/mt for 1,000 mt CIF ARA April delivered barges, prices steadily moved down from Monday's closing assessment of $1,205/mt.
Sources reported a trade done first at $1,202/mt and then at $1,200/mt.
Following this, the April range moved to $1,190-1,200/mt, before a third trade was reported done, this time at $1,195/mt.
The fall below $1,200/mt surprised one trader, given that US prices were seen stable at 383 cents/gallon ($1,145/mt). With freight seen between $50-60/mt, the arbitrage between the US and Europe was closed at $1,200/mt, meaning ARA prices did not need to come any lower to stop imports from being moved into Europe.
The trader added that the fall could be linked to the impending April contract settlement--due March 31.
"There's no fundamental reason [for prices to fall] except the contract price," the trader said.
