The Northwest European July benzene contract price has been fully settled at Eur978/mt or $1,274/mt CIF ARA, according to negotiating parties. The settlement is down Eur67/mt ($79/mt) from the June contract price of Eur1,045/mt ($1,353/mt) CIF ARA.
LyondellBasell, BASF and Bayer confirmed settling as buyers with all their suppliers. Dow Chemical and Total confirmed as sellers.
The decrease in July CP was in line with market players' expectations and represented the average of spot trades over the preceding five days, sources said.
The sharp downward correction in European spot prices over the last two weeks has occurred against a backdrop of maintenance ending at crackers and aromatics extraction units.
BASF and Total completed maintenance work at their Antwerp and Carling facilities, sources with the companies said this week. Earlier this month, sources reported that Ineos Cologne and Slovnaft also restarted their aromatics extraction units in Dormagen and Bratislava, respectively.
Widespread expectations of better availability of benzene in Europe stems not only from returning plants, but also from the change in the feedstock plate given the narrowing propane/naphtha price spread.
In addition, the bearish effect of the local production capacity restarts has been exacerbated by the weakness in the global benzene markets and swelling inventories in Asia and the US.
"There is just too much product. Turnarounds have finished and the US product is coming to Europe, so the market is getting longer," one producer said.
Meanwhile, consumption in Europe remains sluggish and not able to absorb additional volumes appearing in the market.
The phenol sector remains lackluster, with plants running on average at 70% of their capacity.
Despite the styrene-benzene spread surging to its highest levels for over nine months, styrene units are not able to ramp up production further.
"All styrene producers are maximizing production if they can, because the spreads are very good," a trader said.
Sources expected styrene to remain strong through the month of July, while in August it would likely soften.
