In the China benzene market, sentiments were previously bearish but they are strengthening since it was reported that problems about tariffs between China and the US were being resolved. Previously, prices were softening since several derivative facilities were scheduled to enter maintenance in May onwards and demand for benzene was decreasing. In addition, crude prices softened during the Labor Day holidays.

In the derivative market, for styrene monomer, the arbitrage between regions is closed while end-users are only buying necessary volumes. Under this situation, supply/demand is not changing sharply. As feedstock benzene prices are bearish, feedstock costs are not rising.

In the phenol market, operation rates are expected to decrease gradually as some facilities are scheduled to enter maintenance. Therefore, supply is seen to be tight. Buying interest for benzene is expected to recede.

To foresee the benzene market going forward, players are still paying attention to tariff policies by China and the US. They also focus on inventories at ports, operation rates and profitability of derivative facilities.