On September 11, the assessed price for pure benzene in Asia stood at USD 1201.67/ton FOB Korea, down by USD 10.66/ton from the previous day, pressured by declines in Chinese pure benzene futures.
Analysts noted that as markets brace for a prolonged conflict in the Middle East, front-month ICE Brent crude oil futures surged by USD 3.76/barrel during trading hours to reach USD 105.47/barrel. Meanwhile, naphtha C+F Japan assessments jumped by USD 60/ton during the same period on September 11, rising to USD 968.50/ton.
In the FOB Korea market, the spot premium structure between October and November cargo delivery periods narrowed from USD 35/ton earlier in the day to USD 34/ton.
Regarding floating price discussions in the FOB Korea market, a bid was heard for December shipment cargoes at a premium of USD 49/ton over the weekly average Korean price for December. No counter-offers were reported prior to the final assessment time.
In China, the sharp decline in pure benzene futures likely reflected a pullback following significant gains in the previous session, compounded by weakening crude oil prices during midday trading.
Amid recent surges in feedstock prices, market participants indicated that downstream producers are currently cutting operating rates.
In the CFR unnamed destination market, tradable indications for October arrival cargoes were heard at premiums of USD 50–55/ton over the FOB Korea benchmark.
Offers for October arrival cargoes were reportedly made at premiums of approximately USD 60/ton over the FOB Korea benchmark; however, no trades materialized as buyers deemed these offers too high.
The source considered a premium level of USD 50/ton acceptable, noting that a USD 55/ton premium is quite high. Feedstock prices have risen too rapidly for downstream sectors to keep pace.
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