Benzene prices in China have been firm since May and hit a record high in June. This was due to robust benzene prices in the US and strong demand for gasoline blending. In addition, low inventories were cited as a bullish factor as well. Besides that, petrochemical players mainly purchased light naphtha and aromatics production was reduced. As a result, supply of benzene seemed to be tightening.

Meanwhile, considering that feedstock costs have room to move down, derivative producers maintain their production although the profitability of several derivatives is worsening. Thus, most sources view that benzene prices are unlikely to considerably fall.

Regarding the future market, the arbitrage from Asia to the US is expected to be open for the time being due to strong crude prices and firmness in the benzene market in the US. Inventory levels might remain low if exports become active.