European benzene prices surged significantly on October 9, following the conclusion of the European Petrochemical Association (EPCA) conference held in Vienna the previous day. Increased buying interest led to a narrowing of the bid-ask spread.
The indicative price for benzene with delivery dates ranging from 5 to 30 days forward was assessed at $1,418/tonne CIF Amsterdam-Rotterdam-Antwerp (ARA), marking a day-on-day increase of $39.75/tonne, based on a spot premium structure between October and November.
The most competitive bids heard for October and November jumped by $40/tonne day-on-day. Meanwhile, October offers remained stable, while November offers fell by $55/tonne.
For much of the conference period, bids and offers had remained steady, and physical trading activity was relatively quiet. Market feedback during the conference indicated strong demand for ethylbenzene as an octane booster in gasoline, a view corroborated by one trader on the same day.
This substantial premium for ethylbenzene could tighten the benzene market, according to the trader, who also noted that styrene appears increasingly firm.
According to sources close to the company and market participants, Repsol plans to carry out maintenance turnaround on its cracker unit at the Tarragona plant in Spain in Q1 2027. The facility has a benzene production capacity of 221,000 tonnes per year.
Overall, the CIF ARA benchmark rose by $59/tonne week-on-week, with strengthening crude oil prices adding further upward pressure.
In downstream markets, the indicative price for styrene with shipment dates ranging from 5 to 30 days forward was assessed at $1,835/tonne FOB ARA, up $97.50/tonne, based on a spot premium structure between October and November. Prices climbed alongside higher October transaction levels, with physical liquidity returning to the market after the EPCA conference. On October 8, a 2,000-tonne October cargo was traded at $1,800/tonne, while on October 9, two separate 1,000-tonne cargoes were executed at $1,835/tonne and $1,850/tonne respectively.
Beyond strong ethylbenzene demand and reduced import arrivals, market participants at the conference cited exports from the ARA region to the Mediterranean and ongoing logistical and supply constraints caused by low water levels on the Rhine River as key drivers of the market.
Recent feedback from polystyrene players in the Mediterranean indicates they are still seeking October-shipment styrene cargoes from the ARA region, amid supply disruptions or delays in other areas.
One styrene consumer stated that October is expected to be tight in terms of supply.
Overall, the FOB ARA styrene benchmark increased by $84.75/tonne week-on-week.
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