In China, the benzene market remained firm until June. Supply was tight. At major ports in East China, benzene inventories were at around 50,000mt until January and February but hit a historical low at below 20,000mt in June. Further, due to a series of maintenance for benzene facilities in March onwards, domestic production plunged in China. Thus, supply was tight and the market was firm until June.

In the major derivative styrene monomer market, while feedstock costs were hovering high, demand was not strong. As a result, production remained unprofitable.

Going forward, while the crude oil market was uncertain, the turnaround season ended and operation rates of benzene facilities are gradually rising. Therefore, supply is likely to grow. In China, Yulong Petrochemical is scheduled to start up benzene facilities in the October to December period and the import of cargoes is also increasing. If benzene facilities operate smoothly, the market might soften.