In the China domestic market, supply/demand of benzene is perceived to be tight. As fewer imported cargoes arrive and inventories are limited, sellers are not in a rush for sales. Meanwhile, derivative makers continue showing buying interest. Under such circumstances, Sinopec raised prices for ex-plant cargoes and market sentiment strengthened.

In the major derivative styrene monomer (SM) market, prices for feedstock benzene remain firm and procurement costs for SM from traders are high. However, while SM prices recently hit a year high and are perceived to be overvalued, supply is forecast to be ample going forward as new SM facilities started up in the Shandong area. Further, many imported cargoes are scheduled to arrive in August onwards and stocks are building at ports. Therefore, market sources anticipated that the SM market had room to decline.

As for the future, market players are paying attention to the impacts that US economic sanctions against Russia would have and the crude oil market trend. The operation status such as turnaround for derivative facilities is also drawing attention.