Asia benzene was assessed at $1,176.67/mt FOB Korea, up by $1.67/mt from the previous session, as a higher trade emerged during the November close assessment (MOC) process.
During the Asian midday trading session on September 25, crude oil prices edged lower as the market digested reports of US-Iran negotiations regarding a potential phased reopening of the Strait of Hormuz.
Three trades were heard in the market. Gunvor sold a cargo for November shipment, FOB Korea, to GS Caltex at $1,171/mt. Trafigura sold a December shipment cargo, FOB Korea, to Gunvor at $1,128/mt. BP also sold a December shipment cargo, FOB Korea, to Gunvor at $1,128/mt.
In the FOB Korea market, the spot backwardation structure between October and November cargoes widened to $17/mt from an intraday level of $15/mt. The backwardation between November and December cargoes expanded to $43/mt from an intraday level of $40/mt.
Regarding FOB Korea floating price discussions, a bid for November cargoes was heard pre-MOC at a premium of $58/mt over the weekly Mean of Platts Korea (wMOPK) for November; no offers were reported.
In the CFR Taiwan market, domestic buyers reportedly remained resistant to rising premiums, with indications for October and November arrivals priced at slightly above $50/mt over the wMOPK for the month of arrival. One buyer stated, “Downstream participants are unable to purchase. Rising premiums are suppressing demand, and the traditional ‘Golden September, Silver October’ peak season has failed to provide significant demand support.”
However, one Southeast Asian trader believed that premiums of just above $50/mt would be difficult to achieve, given that indications for November arrivals were heard at premiums approaching $70/mt, indicating a wide bid-ask spread.
In China, the East China benzene domestic spot benchmark hit a more-than-four-year high on September 24, supported by sustained crude oil gains and short-covering activity near month-end, while port inventories remained persistently low.
Comments
0