Benzene prices have been declining amid passive downstream market

Benzene prices in China have been on a steady decline recently, driven by multiple market pressures. The refining and shipping sector certain regions is still under strain, leading to subdued confidence among downstream buyers. As a result, purchasing enthusiasm remains low, and several factories have opted to cut prices further in response to weak demand. Despite a reduction in port inventories, the ongoing supply pressure from international markets continues to weigh on domestic benzene prices, prompting spot holders to offload stocks at lower rates.

In the broader market, fluctuations in crude oil prices have contributed to the uncertainty in benzene pricing. The latest trends indicate a downturn in international crude oil futures, further limiting cost-side support for benzene. Additionally, while FOB Korea and CFR China prices showed minor increases, FOB Rotterdam remained stable, and FOB USG saw a drop, highlighting mixed signals from global trade flows.

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The benzene market is expected to remain weak in the short term as participants assess the impact of crude oil price movements, external market fluctuations, and demand-supply shifts. The focus will be on changes in benzene production capacities, downstream operational adjustments, and shifts in demand trends, all of which will influence pricing movements in the coming weeks.