In the absence of confirmed deals, the weekly (+) range will be comprised of the highest bid and the lowest offer of the week.
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The European August benzene contract has been agreed at €886/tonne FOB NWE, up by €132/tonne from the previous month.
The settlement was made at a US dollar concept of $1,263/tonne and converted to the euro price at the officially agreed exchange rate of €1 to $1.4255.
A sizable increase was expected for August, as firming global markets and some short covering have pushed domestic spot prices up by nearly $200/tonne over the course of July.
A bullish US market had initially pushed domestic values up, but sources now feel that the upward movement was instead the effect of a global upturn in pricing, with firming sentiment in each region supporting gains elsewhere.
Towards the end of July, European benzene numbers saw another spike as players looked to the month ahead. With all signs pointing to a bullish market in August in spite of the traditional summer holiday slowdown, several traders were actively buying in order to cover short positions.
Several sources expressed surprise at developments this month, particularly in light of the cumene supply issues at BP Gelsenkirchen and the domino effect this has had in the phenol market, which was expected to create some length for benzene.
One trader said that other players had stepped in to cover phenol demand, which actually had the effect of pushing up both demand and pricing.
Spot values opened the week at $1,235-1,260/tonne for July, with August bids slightly firmer at $1,245/tonne.
July later traded at $1,240/tonne and $1,245/tonne, while deals for August were done at $1,240/tonne and $1,250/tonne. September also traded at $1,237.50/tonne.
By midweek, players said that July was finished, and attention focused on August and increasingly September volumes in anticipation of some tightness towards the end of the summer holiday period.
August traded at $1,265/tonne, while deals for September were reported at $1,260/tonne and later at $1,250/tonne.
By Friday, the range for August moved up to $1,280-1,295/tonne. August later traded at $1,280/tonne and several times at $1,285/tonne, within the current range. July was quiet, and assessed flat with August. September was valued at $1,260-1,270/tonne, and this is where the market closed on Friday afternoon.
The weekly range for July is $1,240-1,245/tonne.
The weekly range for August is $1,240-1,285/tonne.
The European styrene market was subdued this week as players waited for the August barge contracts to settle. Activity was sparse, with buyers electing to remain on the sidelines. Many feel the market has become overheated, one trader said, adding to the muted feeling during the week. Spot values were at $1,500-1,520/tonne FOB Rotterdam on Friday, up $20/tonne from the previous week’s close.
Crude oil prices remained volatile during the week. The inability of US law makers to reach a consensus regarding its self-imposed debt ceiling and a rise in US crude stocks mid-week provided downward pressure to WTI values. However, there was some short-lived bullish momentum in the market after US oil-and-gas facilities were affected by tropical storm Don. ICE Brent prices were steady for most of the week, supported by a weaker dollar. However, continued concern over European debt issues capped gains.
On Friday afternoon, September Brent was trading around $116.70/bbl, down from the previous week’s close of $118.67/bbl. September WTI was trading around $95.95/bbl, down from $99.87/bbl.
($1=€0.70)
This week on ICIS ( www.icis.com ) :
29/07/2011 07:29 Asia benzene hits three-month high on rising prices in US, styrene
28/07/2011 20:48 US Congress may review 'likely carcinogen' label on styrene
28/07/2011 16:07 Europe August benzene contract to firm on global bullishness
27/07/2011 17:59 US August benzene contract to settle above $4.00/gal - traders
