Prices rise nearly 7(cent)/gal
By Staff -- Purchasing, 12/10/1998
Spot market prices for benzene increased sharply in the last month from 71(cent)/gal in September to about 78(cent)/gal in October, according to data from a report by Houston-based pace Petrochemical Service. pace data are based on Gulf Coast pricing for petrochemicals, which accounts for its prices being a few cents below the national average. Respondents to Purchasing's monthly survey put benzene contracts and spot prices at 83(cent)/lb.The cause of the price spike seems rooted in benzene supply concerns brought about by the recent shutdown of Chevron's Pascagoula, Miss., facility after flood damage from hurricane Georges in late September.
According to pace, the production outage tightened supplies and helped support significant spot market gains. Contracts for the remainder of the year were nominated at about 81(cent)/gal, and improved demand and tightening supplies are expected to maintain prices at that level.
Also, benzene producers Nova Corp. and Huntsman Chemical have downtime scheduled for October and November, which will further contribute to supply concerns, and will hold benzene prices above the 80(cent)/gal mark, according to the pace report.
Latest data from Purchasing's monthly survey of chemical buyers indicates that benzene tags will start a year-long decline in the first quarter of next year.
Talkback
Related Content
Related Content
Sponsored Links
View All Blogs
Now Playing:
