Benzene Prices Fluctuate Amid Feedstock Tightness and Weak Demand

Benzene prices experienced fluctuations in April, initially increasing due to supply constraints before declining as demand from downstream sectors softened. The market's movement reflects a dynamic interplay between feedstock availability and consumer appetite.

In mid-April, prices climbed as crude oil and naphtha supplies tightened, partly due to port disruptions linked to Iran. This supply squeeze increased production costs, allowing benzene suppliers to raise their offers. Chinese refineries boosted prices, citing reduced domestic output and lower import volumes from the Middle East, which tightened spot availability.

Demand from buyers of styrene and cumene provided additional support during this period. Active near-term procurement by these sectors absorbed available spot volumes, helping to keep benzene prices firm. This indicated a healthy, albeit temporary, level of consumption.

However, the market weakened significantly in late April. Producers of styrene and ABS shifted to need-based purchasing, reducing their demand for benzene. This downturn was exacerbated by falling Asian styrene monomer values, which were depressed by weak polystyrene offtake. Consequently, benzene prices gave up their earlier gains.

The price movements in April highlight the sensitivity of the benzene market to both upstream feedstock pressures and downstream consumption trends. While supply issues initially drove prices up, a slowdown in demand from key derivative markets ultimately pulled them lower.