The benzene price in the European spot market sank to a 13-week low Thursday after a week of a sharp -- around $100/mt -- downward correction.
Barges for the delivery in ARA region 3-30 days forward were assessed at $1,238/mt at Thursday's close.
This was the lowest level since March 28, when the price was assessed at $1,230/mt, after which it set on a rising trend through most of April.
Current spot price represents a $115/mt discount to the dollar-denominated contract price agreed for June, which was $1,353/mt.
The latest decline in values was primarily supply-driven, sources said, as availability of product -- both from domestic producers and from outside the region -- was increasing.
"With the capacities back up [and] large imports from the US, I see no upside for the next [few] weeks," one trader said.
BASF's steam cracker in Antwerp, Belgium, and Total's steam cracker and benzene extraction unit at Carling, eastern France, were both restarted this week after turnarounds, company sources confirmed Thursday.
Further aromatics units were set to come back online by the end of June, though there were no other confirmations of restarts so far.
Persistent weakness of benzene market on the other side of the Atlantic was another bearish factor for European benzene.
"There is too much inventory in the US. People were expecting that the US market would tighten, but this never happened," another trader said.
US benzene was last assessed at 411 cents/gallon ($1,228.89/mt) FOB USG at Wednesday's close, the lowest level in around a year.
The arbitrage window from the US was currently firmly closed, however, it was previously reported that around 50,000 mt of benzene was fixed over June to be shipped from the US to ARA.
Increasing supplies were not matched by any improvements in the downstream demand. Sources said that cumene chain continued to be weak, and phenol producers were running at around 70% only.
Styrene was seemingly buoyant at the front. However, despite attractive margins, styrene failed to support feedstock benzene.
"EBSM are all running at full rates already, except for those which have issues. They can not absorb more. POSM units are the key though, they run very low due to weak PO demand," a trader said.
