LONDON (ICIS)--European benzene spot numbers have held firm above the July contract settlement agreed on 30 June, sources said on Wednesday, largely on the back of firmer US pricing and healthy domestic fundamentals. The July benzene settlement was agreed at $649/tonne in US dollar terms, tracking some upward movement seen in the spot market towards the end of June. In the US, July pricing has been on a steady upward trend so far due to tightening regional availability. Prices were at $2.18-2.21/gal DDP (delivered, duty paid) on 5 July. There had previously been a build of inventory in the US, with ample Asian material arriving throughout Q1 2016 as well as several derivative turnarounds in Q2. However, this supply now looks as though it has been worked through, with the volatility on global crude oil in the wake of the UK’s vote to leave the EU on 23 June having limited impact on the upward momentum for benzene. European spot levels have edged up this month to keep pace with numbers in the US, with July bids and offers initially valued at $650-665/tonne this week. There was a sharp drop in crude oil prices on 5 July as the greenback firmed against the euro and the US market returned after the Independence Day holiday. However, there was so far no noticeable downward impact on pricing in either the US or European markets. Trading activity in the European spot market has remained fairly thin this week. July was quiet so far today, with July numbers last seen at $650-660/tonne and a $5/tonne premium for the first half of the month.

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