February US benzene at discount on delayed imports

OREANDA-NEWS. February 02, 2016. February US benzene prices are at a 3-4?/USG discount to March amid expectations for rising import volumes from South Korea following earlier loading delays.

Second-half November fixed exports from South Korea to the US were originally due to arrive in January but are now expected to arrive in February. About 83,200 t was fixed in November, with about 53,800 t fixed in the second half of November.

In addition to the already record level number of fixed US exports in December totaling 197,800 t, the delayed volume has traders expecting a larger number of benzene cargoes coming into the US in February. That supports a discounted market for the front month.

April prices are at a 2?/USG premium to March and May is at a 2-3?/USG premium to April. The styrene market is expected to continue to provide support for benzene along the forward curve as styrene unit turnarounds in Asia are poised to support demand for US exports. As well, downstream phenol and aniline demand remains stable.