US benzene was in a roughly 4.50 cent ($13.50/mt) backwardation from November to December on early Tuesday, with sources offering varying explanations for the spread. Some suggested the roughly 40,000 mt of Far East imports due to arrive by month's end were slipping into December. However, there was no confirmation of these delays. Others said traders were hesitant to take strong positions for December, heading into the end of the year as the market tries to destock and avoid end-of-year inventory taxes.
A third participant said demand would also weaken into December due to premium spot ethylene dampening styrene export interest as well as domestic polystyrene suppliers' reduced rates.
November DDP was bid at 327 cents/gal and offered at 332 cents/gal. FOB was seen at 325-333 cents/gal. Meanwhile December DDP was at 320-330 cents/gal. On Tuesday, ranges were being pulled down by energy, with December crude futures on the NYMEX shedding more than $2 to $82.81/barrel at 10:24 am Houston time (1624 GMT).
On Monday, two late trades were reported, both done at 332 cents/gal. One parcel was sold by KST on a DDP basis, and the second was sold by BP for November 15-30 on an FOB basis.
A third participant said demand would also weaken into December due to premium spot ethylene dampening styrene export interest as well as domestic polystyrene suppliers' reduced rates.
November DDP was bid at 327 cents/gal and offered at 332 cents/gal. FOB was seen at 325-333 cents/gal. Meanwhile December DDP was at 320-330 cents/gal. On Tuesday, ranges were being pulled down by energy, with December crude futures on the NYMEX shedding more than $2 to $82.81/barrel at 10:24 am Houston time (1624 GMT).
On Monday, two late trades were reported, both done at 332 cents/gal. One parcel was sold by KST on a DDP basis, and the second was sold by BP for November 15-30 on an FOB basis.
