In the China benzene market, buying interest for spot cargoes is strengthening. As a major producer of derivative styrene monomer (SM) completed maintenance this week, demand for feedstock benzene is increasing. Inventories of benzene at makers in the north were low until last week and spot cargoes for sales were limited. As a result, benzene prices in the north are firm.

In the derivative market, SM facilities that were previously under maintenance are restarting and perceptions of tight supply for SM are easing. But as inventories are still low, market sentiments are firm.

The market going forward is expected to depend on operations of derivative facilities and consumption of inventories of benzene at ports. Players are also paying attention to the crude market and the Chinese government's economic stimulus.