On October 21, spot benzene prices in the US Gulf Coast (USGC) declined by 21 cents per gallon across all shipment periods and trade terms. This downward trend followed a shift in downstream styrene margins, which pressured both octane blending values and benzene prices, as styrene producers redirected their focus toward producing styrene rather than ethylbenzene (EB).
Since the beginning of the week, prompt benzene prices have accumulated a decline of 50 cents per gallon. This latest drop is attributed to the transmission of weaker styrene margins following a significant slump in octane blending values.
One styrene producer stated that benzene pricing has fallen "due to a substantial decrease in ethylbenzene demand," adding that even at lower spot benzene prices, it remains uneconomical to produce EB.
A source in the benzene industry noted that while styrene producers are raising operating rates, the decline in benzene prices stems from reduced consumption of ethylbenzene in the octane blending sector.
Market chatter indicated a deal for December delivery in the US Gulf Coast was struck at 463 cents per gallon on the day.
The assessed price for October benzene stands at 475 cents/gallon DDP, down 21 cents/day on a day-over-day basis. November cargo assessments are at 470 cents/gallon DDP, also down 21 cents; December cargo assessments are at 463 cents/gallon DDP, likewise down 21 cents day-over-day.
The assessed price for October benzene is 478 cents/gallon FOB, down 21 cents/day day-over-day. November cargo assessments are at 473 cents/gallon FOB, down 21 cents; December cargo assessments are at 466 cents/gallon FOB, also down 21 cents day-over-day.
The calculated benzene-to-crude ratio for the day is 1.96. The assessed spot price for October ethylbenzene is 471 cents/gallon DDP, unchanged; November DDP ethylbenzene assessments are at 460 cents/gallon DDP, also steady day-over-day.
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