The Cost of Benzene in the European Market in June 2017Jun 20th, 2017
Some European buyers and sellers of benzene reported that contract price of benzene decreased by EUR 17 compared to the May price. Today a tonne of benzene is EUR 737. The current exchange rate of Euro to the U.S. dollar (EUR/$) is $1, 1173. Accordingly, in dollar terms, the price per tonne of benzene in June is $824. The market players state that the talks about the June price were active and therefore, the price was quickly agreed upon.
As predicted by some sources, the growth of prices on benzene was expected in the result of OPEC’s statement about the extension of the agreement on stabilisation in oil prices, which limited oil production to March 2018.
Producers and market participants expected the prices for crude oil to rise, but the last OPEC’s decision disappointed them. That means the production will not be stopped for a long time, and as a result, the production of petroleum products and fuels would not be reduced significantly. All this has influenced the forecasts regarding the European benzene market which were uncertain and vague in relation to the contract benzene pricing in the next month.
The April price was agreed at EUR745 per tonne. It is almost EUR 190 below the March price. A significant decrease in the spot quotes in Europe and the fall of the international price of benzene made market players expect lower prices in April.
Benzene is a raw material for the production of styrene. Styrene is applied in the manufacture of polystyrene. In May the prices for polystyrene were stable, but in the future, the Russian players expect lower prices for these products, which will reduce the cost of styrene products for consumers.