Asia-Euro benzene arb unlikely.

摘要

Despite reduced benzene supply in NWE due to steam cracker shutdowns in the area, the Asia to Amsterdam-Rotterdam-Antwerp (ARA) benzene arbitrage window is not likely to open despite higher prices in the region. Platts assessed NWE benzene barge values for July and Aug. at $825/mt and $810/mt, respectively, on July 7 making these benzene prices the highest in the world. These high prices are still not high enough to open an arbitrage window to move benzene from Far East and Southeast Asia though as benzene prices in these regions were assessed at $738/mt FOB Korea and $730/mt FOB Southeast Asia on the same day. With freight rates from Far East Asia at $95/mt and from Southeast Asia at $90/mt, arbitrage levels on paper would need NWE benzene prices of $833/mt and $820/mt, respectively.