Benzene market in fluctuation despite rising inventory

East China benzene prices fluctuated upward in the second half of December on improving supply-demand structure. Firmer crude oil and downstream styrene prices also lent some supports to the market.

Sinopec hiked its benzene listed price by 300yuan/mt on December 26. After the adjustment, all marketing branches of Sinopec quoted up to 7,250yuan/mt.

Operating rates of downstream units have increased with unit restarts, particularly in styrene industry.

Benzene inventory increased in the second half of December, however, the increase was still within expectation. Benzene inventory increased by 46.3kt week on week to 101.8kt in East China ports on Dec 27, according to data released by CCFGroup.

As domestic prices remained lower than imported, discussions for imported cargoes on fixed prices were thin. As a result, the import in January is expected to decrease.

The supply-demand structure is expected to improve in January. However, the inventory decrease seems could not digest the increase in December, 2023.

In the short term, benzene market is expected to keep fluctuating. Eyes could rest on crude oil and styrene prices.