Domestic Demands in China Boost the Benzene Market
- 08-Jun-2022 5:24 PM
- Journalist: Xiang Hong
As per ChemAnalyst's analysis, Benzene prices in the Chinese domestic market has risen significantly this week. The revising price by some of the manufacturers backed the increasing price trend. In addition, the cost side price rose following the holidays.
The Benzene prices strengthened after the dragon boat festival holidays due to the low inventory levels and high imported cargoes in the ports of East China. The slow destocking activity and the reduced production resulted in the commodities shortage in the local market, further triggering the Benzene pricing. Hence, some of the Benzene producers like Xinhai Petrochemical and Dongming Petrochemical raised their offers for short-term Benzene.
However, Benzene is the direct derivative of crude, and the rising crude prices directly inflict the Benzene values. Also, the domestic downstream factories of Acetone, Phenol, and Aniline increased the commodities' prices. The demand for Benzene for manufacturing these products rose in the domestic and regional markets.
One of the suppliers exclaimed to our team that consumer consumption met a bullish trend after the dragon boat festival break. Thus, the Benzene price inclined by 4% with a rise of $54/ tonne from 5th june to 7th june.
In addition, the export cost from South Korea increased in accordance with the raw material price hike. Besides, the growing downstream automotive, construction, and chemical industries require Benzene in a huge amount, which is utilized in manufacturing dyes, pigments, synthetic fibres, rubber, plastics, etc. The increased use of the products mentioned above in our day-to-day life pushed up the demand from the terminal end, boosting the Benzene prices further.
According to the ChemAnalyst, "Benzene values are expected to grow in the coming weeks due to the surging upstream crude prices. High inventory levels coupled with healthy buying sentiments from the domestic market are expected. Also, the demand from the downstream derivative sectors is likely to push up, inflicting the Benzene pricing. Moreover, the import charges might rise due to the skyrocketing freight charges."