The China benzene (BZ) market is supported by strength in crude prices and overseas benzene prices. The market is also supported by low inventories at ports in China. On the other hand, for derivatives, buying is actively taking place to replenish inventories before the National Day holidays. Therefore, supply/demand is tightening. But as benzene prices have been bullish until now and the market is seen to be overheated, derivative makers might refrain from buying going forward.

In the derivative market, styrene monomer (SM) prices are firm as inventories of SM in East China are low and players are expected to continue buying to cover short-positions. In the phenol (PH) market, feedstock costs are high. In addition, some PH facilities are shut down and supply is perceived to be tight. Derivative makers are cautious about high prices while some traders are moving to sell for profit taking. As a result, the rise of the market might be limited.