NWE benzene weakens vs naphtha, yet sentiment remains company for Feb
. Area Northwest European benzene prices deteriorated compared with feedstock upstream naphtha Wednesday, although market resources were still certain of the recurring strength of benzene in Europe for February.
Spot benzene rates for February slipped by over $10/mt to trade at $1,270/ mt for a 1,000 mt CIF ARA barge Wednesday afternoon, compared to rising worths in upstream naphtha.
The CIF NWE front-month naphtha split has rallied just recently on news of Western refinery closures, peaking at an eight-month high of minus $1.85/ b on Friday, January 27, after news of an FCC interruption at ConocoPhillips? 238,000 b/d Bayway Refinery.
The split has held over minus $7/b since January 17. In December it had actually been as low as as minus $11.30/ b.
This has actually seen the spread between benzene and naphtha slim to simply over $280/mt, compared to $372.50/ mt on January 24, where a brief squeeze on benzene supply saw rates relocate above $1,300/ mt.
The strong market conditions through January saw a sharp climb in contract values also. The NWE February CP for benzene resolved at Eur979/mt or $1,283/ mt Monday, up Eur116.50/ mt as well as $171.50/ mt compared to January.
The source of the benzene rate spike was stated to be a combination of minimal supply as a result of lack of feedstock pyrolisis fuel in Western Europe and better-than-expected need over January.
According to dtpmp phosphonate , this dynamic was likely to continue over February, suggesting that the current weakening of costs might be short term.
One investor said: "For February, I see that on the supply side, the impact of feedstock constraints is still beginning and I assume need is better than anticipated. The marketplace might have shed some momentum presently, yet it's still even more of a buy, there's very little downside." A sector source added: "We're still losing a lot of pygas to the gasoline swimming pool and also the marketplace comprehends that benzene rates have to remain attractive if we intend to obtain the pygas.".
March spot costs were claimed to be valued $10-15/ mt below February however, with the turn-arounds downstream likely to hit intake prices throughout March and early Q2.
Spot benzene rates for February slipped by over $10/mt to trade at $1,270/ mt for a 1,000 mt CIF ARA barge Wednesday afternoon, compared to rising worths in upstream naphtha.
The CIF NWE front-month naphtha split has rallied just recently on news of Western refinery closures, peaking at an eight-month high of minus $1.85/ b on Friday, January 27, after news of an FCC interruption at ConocoPhillips? 238,000 b/d Bayway Refinery.
The split has held over minus $7/b since January 17. In December it had actually been as low as as minus $11.30/ b.
This has actually seen the spread between benzene and naphtha slim to simply over $280/mt, compared to $372.50/ mt on January 24, where a brief squeeze on benzene supply saw rates relocate above $1,300/ mt.
The strong market conditions through January saw a sharp climb in contract values also. The NWE February CP for benzene resolved at Eur979/mt or $1,283/ mt Monday, up Eur116.50/ mt as well as $171.50/ mt compared to January.
The source of the benzene rate spike was stated to be a combination of minimal supply as a result of lack of feedstock pyrolisis fuel in Western Europe and better-than-expected need over January.
According to dtpmp phosphonate , this dynamic was likely to continue over February, suggesting that the current weakening of costs might be short term.
One investor said: "For February, I see that on the supply side, the impact of feedstock constraints is still beginning and I assume need is better than anticipated. The marketplace might have shed some momentum presently, yet it's still even more of a buy, there's very little downside." A sector source added: "We're still losing a lot of pygas to the gasoline swimming pool and also the marketplace comprehends that benzene rates have to remain attractive if we intend to obtain the pygas.".
March spot costs were claimed to be valued $10-15/ mt below February however, with the turn-arounds downstream likely to hit intake prices throughout March and early Q2.
