Readers ask: Why is benzene pricey?
By Tom Stundza -- Purchasing, 1/3/2007 9:51:00 AM
What have been the probable causes for the rapid rise of benzene prices over the past several years?Mike Gilroy, Canplas LLC, Denver.
Benzene, the aromatic compound used to produce other chemicals and resins, usually tracks crude oil, its main feedstock. The chemical cost an average 90¢/lb a decade ago; nowadays, its average has been about $3. In the same timeframe, crud oil has gone from an annual average of $12/barrel to $66. Benzene has grown even more costly in recent months—and could get even pricier soon—not because of any demand surge but because of a shortage of production capacity. The January price for benzene looks to be at the $3.73/gallon cyclical price peak of last October—after a brief two-month slippage to an average $3.36—simply because supply continues to be limited in North America. Analysts suggest that until raw material prices decrease and production levels increase in the U.S. and abroad, benzene's spot-market price will remain elevated. Also, ICISpricing.com reports that January’s benzene price in Asia jumped 10% this month because of tight supply-and-demand balance—making shipments outside the region unlikely.
Benzene prices erupt across North America
04/14/2009Aluminum prices rise again
06/03/2009
Now Playing: 