One aromatics broker even suggested Tropical Storm Bret, which was forecast to move away from the Bahamas earlier this week, was factored into the higher US prices.
“All great elements for speculative trading,” the broker said.
Some US benzene and styrene producers have lowered production rates due to the seasonal lull in demand. But one benzene trader said there was talk of an upcoming turnaround in early August at a refinery in Baytown, Texas, which also could have triggered the increase.
The increase also comes as styrene and benzene prices move higher in Europe.
Despite the increase overseas, European benzene prices are still below US values, which has created an open trans-Atlantic arbitrage window.
Current prompt benzene spot prices in the US are at $4.10-4.15/gal ($1,227-1,242/tonne, €71-882/tonne) FOB (free on board), up from $3.98-4.03/gal FOB on Monday.
Meanwhile, benzene spot prices in Europe are at $1,220-1,230/tonne CIF (cost, insurance and freight).
Shipping sources reported hearing of benzene shipments from Europe to the US last week. One source said 8,000 tonnes had been fixed, while another shipping broker said there was 6,000 tonnes set for late July. Total size of the benzene could reach 25,000-30,000 tonnes this month, a shipping source said.
($1 = €.71)
