In the China benzene market, derivative makers bought cargoes until last week to replenish inventories before the Lunar New Year in February. Therefore, demand was firm. Along with this, inventories of benzene at ports decreased. In addition, benchmark feedstock crude prices are still high and benzene prices are supported. Petrochemical makers are raising their ex-works prices and the market is expected to remain firm for a while.

In the derivative market, since some derivative styrene monomer (SM) facilities were shut down due to troubles, some players are moving to buy to replenish inventories. Further, as SM futures prices on the Dalian Commodity Exchange in China are firm, market sentiments are strong. But as demand is not that high, supply/demand is not seen to be tight. Many sources perceive that prices are unlikely to rise sharply.