European benzene prices fell on October 16, tracking lower offers as feedback indicated a slowdown in octane blending activities.
The 5-to-30-day forward delivery assessment for benzene stood at $1,429.50/mt CIF Amsterdam-Rotterdam-Antwerp (ARA), down $46/mt day-on-day, based on an October-to-November backwardation structure.
Prior to the closing assessment process, the most competitive bids for any date in November and December dropped by $15/mt and $40/mt day-on-day, respectively, while buying interest weakened by $80–$90/mt.
During the Market On Close (MOC) session, November offers softened further, with Tricon Energy Ltd. quoting 1,000 tonnes at $1,408/mt.
One trader noted that octane activity was indeed slowing. It was reported that the narrowing European gasoline-naphtha spread was also dampening the flow of naphtha-derived components into the octane pool, while chemical buyers were reportedly raising their bids for naphtha supply.
Previously, it was reported that cumene and some ethylbenzene octane activities had supported European benzene prices in recent weeks, with the CIF ARA benchmark reaching $1,476/mt on October 14, its highest level since July 2022.
Overall, despite subdued trading activity this week, the benchmark rose $11.50/mt week-on-week.
Downstream, the 5-to-30-day forward shipment assessment for styrene stood at $1,962.25/mt FOB ARA, down $52.25/mt day-on-day, based on an October-to-November backwardation structure.
Prices softened due to a low-priced November trade of 1,000 tonnes at $1,920/mt. Despite the softening in November prices, market feedback this week suggested that near-term supply remained somewhat tight, a factor that had previously caused October prices to jump.
It was reported that October trades concluded this week at $1,945/mt and $2,020/mt, with another deal at $2,070/mt heard after the October 16 assessment cutoff. At least 4,000 tonnes were reportedly traded this week.
Styrene supply in Turkey remains relatively tight, a situation that has recently prompted exports from Northwest Europe to the Mediterranean.
Although sentiment in the FOB ARA market was bullish for October, one distributor stated that this was not reflected in the FCA ARA truckload market.
The distributor noted that at these price levels, distribution customers were withdrawing from the market, hoping for lower prices in November. While there was some tightness in the market, it was not as severe as some claimed. "If I wanted to buy, I still have multiple options available right now," the distributor added.
Overall, the FOB ARA styrene benchmark rose $127.25/mt week-on-week, peaking at $2,015/mt on October 14, its highest level since May 2022.
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