Benzene Prices constantly surging in the global market

In the Asia Pacific region, the Benzene prices have continuously shown an upward trajectory movement due to soaring Upstream crude prices and the growing demand from the downstream industries.

Asia Pacific region has the largest share in the global Benzene market owing to the expansion of the Automotive, Petrochemical, and Construction industry in India, China, South Korea, and Japan. While Benzene and its derivatives are the most extensively used raw material in the manufacturing of downstream styrene, nylon tires, paints, etc., which are in great demand from the end-use sectors, have inflicted the Benzene market. In South Korea, the prices of Benzene settled at USD 1120 per tonne on 1st April.

However, because several Asian nations, such as India and China, are among the world's top producers of pharmaceutical products, the usage of benzene intermediates in the pharmaceutical sector for drug manufacture has expanded, resulting in the price hike in Benzene. Furthermore, the increased demand for polystyrene, a Benzene derivative, in the food and e-commerce industries for packaging purposes has further influenced Benzene pricing.

China is the major importer of Benzene from South Korea; the port congestion in China due to the phased shutdown in COVID affected cities has disrupted the trade activities. This intrusion has exacerbated the supply of products to the domestic market, which severely affected Benzene prices. South Korea also exports majorly to the USA and far East Asian neighbour Japan. 

Soaring Upstream Crude prices which was the aftermath of Russia's invasion of Ukraine, brought about an escalated price trend in the Benzene market. On the other hand, lockdown restrictions in China are denting overall demand fundamentals for the product from the domestic market, influencing the Benzene values.

According to ChemAnalyst, "Asia Pacific region is expected to dominate the global Benzene market which might lead to the upward trend in Benzene market in the forthcoming weeks. In addition, the further expansion of the Automotive and Construction industries may also influence the price. However, a slow pickup in operating rates in China and firm demand from downstream segments could add to the Benzene prices. Besides, if the geopolitical tension continues, no ease is expected in the Upstream Crude oil prices and its derivatives."