Benzene Prices Defy Inventory Build, Import Decline Looms

Benzene inventories at East China ports rose by 1kt to 130kt on Nov 27, as per CCFGroup data. Despite this accumulation, prices edged higher, reflecting earlier October price adjustments that anticipated inventory growth.

October also saw a sustained styrene-benzene spread, driven by low styrene stocks and a major East China plant shutdown. With this plant resuming operations by late November, styrene inventories are expected to grow, narrowing the spread and encouraging benzene buying.

China's October benzene imports hit a near two-year high of 434,000 mt, slightly below the forecast of 450,000 mt. The strong aromatics margins, increased domestic production, Asia-US trade window closure, and China's globally high benzene prices supported import volumes. However, this import surge is likely to be short-lived.

November's shorter production month, rising regional demand from a new 400,000 mt/year phenol-acetone plant in Korea, and December's increased Korean benzene exports to the US Gulf are expected to reduce China's benzene imports in the coming months.