The European spot price of benzene rose above the November contract price on Tuesday triggered by surging US prices and strong export demand, according to S&P Global Platts data.
The 5-30 day forward spot price was assessed at $831/mt CIF ARA Tuesday, up $21/mt on the day. The price level was above the November contract price settlement of $815/mt or Eur702/mt, which was settled on Monday.
After Platts market close at 16:30 London time on Tuesday, bids continued to increase, with November bid-offer ranges closing at $835-$845/mt.
The increase in benzene prices in the afternoon on Tuesday was triggered by the opening of the US market, where prices surged.
The FOB USG November and December spot prices were assessed at 315 cents/gal ($942/mt) and 296 cents/gal ($885/mt) respectively, up 12 cents and 7 cents.
A trader source said Tuesday that traders continued to work the export arbitrage with the US, which meant that European prices were pulled up by the US.
The US market has been firming since the second half of October on tight US fundamentals and, as a result, attracting imports from Europe. Europe has been exporting benzene since the summer as traders attempted to clear length in the European market.
