Benzene prices in China are bearish. As the impact of the conflict between the US and Iran eased, feedstock costs softened last week. Since August, several benzene facilities in China that had undergone turnaround restarted and operation rates are increasing. Further, operation rates of benzene facilities in foreign countries also rose and inflow of imported cargoes increased. For this reason, supply in China is ample. Supply is expected to remain ample going forward.

　 On the demand side, demand for several derivatives such as styrene monomer (SM) is sluggish. For SM, operation rates of facilities are low owing to worsening profitability. As a result, buying interest for feedstock benzene is scarce.

　 Since the situation in the Middle East is unstable and crude prices are fluctuating, it is difficult to forecast future feedstock costs. On the supply side, inventories at ports are currently low but since several benzene facilities restarted after turnaround, production is expected to increase. Therefore, supply tightness is easing. Meanwhile, many derivative facilities including SM are shut down and slack supply/demand is expected to continue.