Benzene prices upsurged in March owing to burgeoning Crude oil market

Benzene prices have risen in the third week of March, influenced by the skyrocketing prices of crude oil. As per the ChemAnalyst database, Benzene prices saw a week-on-week inclination of 1.79% due to the high upstream prices and supply shortage in the regional market. Growing demand in the downstream textile industries has increased the demand for Benzene on a large scale in the global market.

Benzene prices have been increasing in China due to the recent COVID outbreak that led to lockdowns, disrupting the trade activity in Southern regions. The shutdown in Shenzhen has affected import and export, as it is the second-largest port in China. Container shortage persisted in continuing. The freight charges have increased 4 to 5 times for the past years and tend to rise further. As the planting season approaches, demand for pesticides may increase in the upcoming weeks.

The US government has announced that they have halted purchasing the supplies from Russia. Supply of crude has inflicted due to the outlaw; the price rose while affecting its derivatives such as Benzene, Toluene, Xylene, etc. There is a rising demand from the end-use industries, such as the demand for plastics in the packaging industry. To increase the revenue, the US government has been planning to boost the textile industry, hence increasing Benzene's demand. Moreover, prices are increasing in Saudi due to the unprecedented attack on Yasref refinery that caused the production to halt for the time being.

As per ChemAnalyst, "Freight charges may tend to rise further due to the shortage of containers followed by high fuel prices. If the lockdown continues to pursue further along with the shutdown, the demand may rise rapidly, increasing the price. The attack on Saudi Arabia's Yasref refinery on March 20 may hamper the production of Benzene in the upcoming weeks."