With the US-China "trade war" escalating, the China aromatics market going forward is becoming uncertain.

Up until last week, the crude oil market dived as the US government announced reciprocal tariffs. Asian petrochemical makers were concerned about a decrease in naphtha demand. Under such circumstances, the market for aromatics including benzene remained soft.

In the wake of the US reciprocal tariffs, the futures market for derivative styrene monomer plunged on the Dalian Commodity Exchange in China. The benzene market tumbled as well. The derivative market was also on a downtrend along with a decline in feedstock costs.

Market players are paying attention to the US tariff policy going forward. In addition, the operation status of naphtha crackers in Asia is also drawing attention. In the benzene market, buying is expected as players feel that the market has hit bottom after a sharp fall until last week. The toluene market also seems to have hit bottom but is capped since demand for exports is unlikely to recover. The downside is, however, limited as gasoline prices are not falling that much.