The China benzene market is still firm.

On the supply side, supply for imported cargoes is tight since crude prices are staying at high levels. Inventories of benzene in East China are low. Supply is expected to decrease further going forward along with maintenance of facilities. For these reasons, market sentiments are strong.

On the demand side, buying interest is not strong as several derivative facilities are scheduled to undergo maintenance going forward. As for facilities of styrene monomer (SM), a major derivative, operation rates are unlikely to decrease further since the rates have been already low. SM futures prices on the Dalian Commodity Exchange in China are firm and this is also supporting benzene prices.

The gap in prices between regions might widen going forward, depending on the progress of maintenance at derivative facilities.