Benzene Prices Continue to Decline in the USA Market
- 24-Nov-2021 3:15 PM
- Journalist: Patricia Jose Perez
The prices of Benzene have been falling for the past two months in the USA. The prices peaked in the starting of the month of September with the prices at USD 1160 per tonne and the prices have been falling since then. The prices for the mid-October were at USD 1020 per tonne and the prices have fallen since then to USD 995 per tonne in November last week. The prices have been declining due to rise in inventory levels on the back of increased operating rates. The prices of downstream styrene are also falling. This is also one of the reasons for the price decline for Benzene.
The prices are expected to remain on a downward trajectory for the upcoming month as the demand from the downstream cumene and styrene appears stagnant, and the prices of styrene are also falling in the USA.
Benzene is a colourless, refractive liquid having a characteristic aromatic odour. Its vapours are toxic and highly flammable. Benzene is one of the largest volume aromatic petrochemicals used to produce a number of petrochemical intermediates. Most of the Benzene produced is consumed in the production of Ethyl Benzene which is used to produce Styrene. Other outlets for Benzene include Cumene, Cyclohexane, and Nitrobenzene.
The main processes for Benzene production are the steam cracking or catalytic reforming of liquid petroleum feedstocks, primarily naphtha, where the benzene is recovered from the aromatics stream. Other processes are hydrodealkylation (HDA) of toluene and toluene disproportionation (TDP). The global demand for Benzene stood at around 53 million tonnes in 2020 and is expected to grow at a CAGR of 3.81% during the upcoming years till 2030.
As per ChemAnalyst, “the prices of Benzene which have been falling for the past two months in the USA market are expected to fall for another month and then take an upturn with mild fluctuations. The prices will tend to rise once the demand picks up in the downstream sectors of styrene and cumene.