Benzene prices in Europe are expected to rise by 3-4 percent as crude hit a 9-week high
- Journalist: Timothy Greene
European Benzene prices are expected to witness an increment in prices for about 3-4% as prices for Benzene move in line with the crude prices. On the 13th of January 2022, European Brent crude futures rallied to a 9-week high above USD84 a barrel, boosted by tight supply and easing concerns about the omicron variant's possible impact on demand. According to sources, energy volatility will be a crucial issue at the core of the Benzene market in H1 2022, with increasing natural gas costs prompting producers to impose extra surcharges on top of agreed contract pricing for downstream components. Benzene prices in the current week were assessed at USD 1140/MT FOB Hamburg.
The European market witnessed a mismatch in Benzene supply and demand at the start of the new year, as the impact of the coronavirus pandemic will continue to have a large influence on upstream oil prices, over the uncertainties of worries of omicron and the following impact on global markets. Furthermore, high international freight prices have decreased arbitrage opportunities, leaving the European market short on inventories.
The present pricing scenario is projected to be maintained in the coming week, with greater crude and naphtha values expected to maintain the current price position, and regional demand expected to continue optimistic. Prices in European markets are projected to rise by another 5% to 10% in the coming week as a result of this.
In the last month, Benzene prices in Europe have risen by about 4%. According to ChemAnalyst. "With strong demand and limited supply, Benzene prices are anticipated to continue their upward trend." With the predicted expansion in the respective end use sectors, Benzene demand from downstream industries such as styrene, aniline, and others is also expected to rise. As a result, prices are projected to remain stable in the next months."