US May benzene contract price settles 8 cents higher on month at 233 cents/gal
The US benzene contract price was heard to have settled 8 cents higher on the month at 233 cents/gal for May.
Petrotahlil(Tehran) - The increase was in line with expectations and traded level seen throughout much of the contract period.
The increase comes as the spot benzene market maintains a backwardated structure from May to June, partly due to expectation of increased benzene imports into the US in June.
Sources have said that nearly 68,000 mt of benzene were loaded out of South Korea and destined for the US during the first three weeks of April. Some participants estimated that total benzene exports out of Asia could reach as high as 100,000 mt in May, after landed volumes increased in April, last estimated at near 86,000 mt.
Meanwhile, derivative styrene demand was expected to improve, with a US producer finishing up maintenance in early May, a source said. Downstream styrene prices have been trending lower since the last week and were assessed at $1,020/mt FOB USG Tuesday for prompt material.
Higher benzene contract has also dented styrene margins, which were last estimated at near $236/mt Wednesday morning
