Trade Resources Economy Benzene Production Margins in Europe Have Sunk to Their Lowest Level in The Past Six Month

Benzene Production Margins in Europe Have Sunk to Their Lowest Level in The Past Six Month

Benzene production margins in Europe have sunk to their lowest level in the past six months following a continuous drop in spot benzene prices over the last four weeks, Platts data showed.

Benzene's premium to naphtha dropped to $353.25/mt Wednesday. The last time it was lower was November 26, when it was $308.25/mt.

The spot benzene price was assessed last at $1,304/mt CIF ARA, down $20.50/mt on the day. Thus since the end of April, when the market set on a downward trend, benzene prices have dropped by 10.7%, as spot demand fell amid benzene fixtures from Americas and Asia.

Meanwhile, the price of naphtha is rising cautiously, with CIF cargoes last assessed at $950.75/mt.

So far this year the premium of benzene over naphtha has averaged $485/mt, due to the extreme tightness of Atlantic benzene supplies seen at the start of the year. The highest the premium climbed to this year was $636.75/mt on January 16.

Normally a premium of $250/mt is sufficient to cover production costs. 

 

Source: http://news.chemnet.com/Chemical-News/detail-2318882.html
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NWE Benzene's Premium to Naphtha Dips to 6-Month Low
Topics: Chemicals