In the China benzene market, supply is perceived to be tight. Arriving volumes of imported cargoes are low while sales are high. As a result, inventories are consumed quickly especially at ports in East China. Meanwhile, refineries in North China focus on production of oil products such as gasoline and production of aromatics including benzene is decreasing. In addition, crude prices are at high levels and an increase in feedstock costs is supporting the market.

But profitability is worsening and buying interest from derivative makers is said to be scarce. As China will be on Lunar New Year holidays from next week, trade is muted.

Regarding the market situation going forward, players are paying attention to operations of derivative facilities, changes in crude prices and economic stimulus from the Chinese government.