In China, buying interest for benzene is scarce. As for derivatives, imported cargoes are arriving intensively recently while consumption is slow and inventories of styrene monomer (SM) are rising. This week, inventories of benzene at ports also increased and supply is perceived to be ample. Until the previous week, futures prices for several products increased along with firm crude prices and buying interest for benzene was also strong.

To foresee the market going forward, players are paying attention to changes in economic situation after the presidential election in the US. This is expected to affect operations of derivative facilities.

As for derivative facilities, Shenghong Petrochemical's SM facility that was completed in October is operating smoothly at this moment. Meanwhile, production cuts took place at several SM facilities until October. In November onwards, three facilities are scheduled to enter maintenance. Under such circumstances, production volumes of SM in November are seen to be lower than October.