European benzene's premium to naphtha slipped to a 3.5-month low at the end of last week as benzene failed to keep pace with strengthening upstream markets.
The spread between spot benzene and its feedstock naphtha was assessed at $363.75/mt at Friday's close, Platts data showed.
Spot benzene barges were last assessed at $1,268/mt CIF ARA, around $150/mt below the average price of benzene in the April-June period.
NWE naphtha meanwhile rose to a four-month high at $904.25/mt CIF ARA, lifted by the buoyant gasoline market.
Last time the benzene-naphtha spread was assessed lower was March 28, when it dipped to $349/mt, as downstream styrene and phenol turnarounds contributed to oversupply on the European benzene market.
The current level is more than $250/mt down from the spread's peak at the end of April, when it hit a ten-month high at $615/mt on April 23.
The sharp correction in spot benzene prices at the end of June was due to a combination of factors including persisting weak demand for some benzene derivatives, restarts of benzene producing capacities after turnarounds and fixtures from the US.
Sources said around 30,000 mt of material of US and Brazilian origin is expected to arrive in Europe in late July.
"The main question is whether imports will weigh on prices. If these volumes are not completely placed, there might be some pressure on July values," one trader said.
