In China, supply of benzene is tightening. Import cargoes are limited and production volumes by domestic makers are low. In addition, information is heard that troubles occurred at some facilities and buying inquiries from traders are strong. Further, crude oil prices, which affect feedstock prices, are hovering high and this is also regarded as a bullish factor.

In the derivative market, import of styrene monomer would decrease going forward. Therefore, present high inventories might be improved. Moreover, in the phenol market, as sellers are adopting a bullish stance on the back of high feedstock prices, demand for derivatives is weak and prices are capped.

Going forward, while benzene facilities that were undergoing turnaround are gradually restarting, several derivative plants suffered deteriorating profits. Under such circumstances, some market sources forecast the benzene market to be declining in the future. But as feedstock costs are high and supply remains tight, many market sources reckon that the market would unlikely fall sharply.