Monday saw benzene prices marginally rise on the back of late last week's gain in the US prices.
Inspite of decline in crude output Friday, sellers were able to seek higher rates, thus giving indications of bullish prices.
But, traders turned cautious again this morning despite benzene prices gaining overnight, especially in Europe.
The drop in upstream crude oil prices has been very sharp on Monday on the back of profit booking with drop of over $2 per barrel of crude in Nymex prices.
As a result, FOB Korea benzene bids which yesterday were pegged at the $705 per metric ton levels have been withdrawn.
Benzene market is also affected by sluggishness of downstream SM industry.
SM prices did recover last week with demand in parts of Asia, but a hold on volume buying by China affected SM spot prices which slid lower yesterday, continues its slide this morning too.
Hence, benzene feedstock buyers have slashed their bid prices with one buyer showing interest at less than $700 per metric ton FOB levels.
marketing@alchempro.com
