The ratio of benzene prices to naphtha in Northwest Europe is at a two-week high as oversupply in European benzene has eased with exports heading to the US.
The ratio, at 1.35 Tuesday, remained well below the five-year average of 1.42 and the 2015 average of 1.51, however.
About 10,000-20,000 mt of benzene has been fixed to the US from Europe in October following about 30,000 mt in September.
The ratio has fallen from a record 1.95 on August 3 as benzene supplies outpaced demand, hitting prices while naphtha has remained stable.
A combination of high cracker run rates and good availability of feedstock pyrolysis gasoline left a glut of supply in the European domestic market while demand derivatives like styrene and phenol/acetone faltered.
Benzene supply is dependent on gasoline production out of the refinery and as a co-product of naphtha cracking.
Sources expected benzene prices to rise, given Europe has the lowest price in the world.
The European benzene 5-30 day marker was assessed at $599/mt CIF ARA Tuesday, down $5/mt day on day.
US October was assessed at $643/mt FOB USG Tuesday, while Asian benzene was assessed unchanged at $610/mt FOB Korea Wednesday.
In 2014, Western European benzene consumption was 7.534 million mt, while production was 6.715 million mt.
Pyrolysis gasoline was the first source of supply with 54 % of the total, reformatted-based production represented 29%, and on-purpose and coal-based production represented 17%.
EU imports in 2014 were 798,300 mt while exports were 194,400 mt, mostly to the US.
