Louisiana- Amidst the predicted recession fear in upcoming orders and inclined demand for Benzene from the domestic and international market, Benzene prices bounced back in the third week of April. Crude oil (upstream) had witnessed an inclination in demand, consequently creating an opportunity for oil traders to increase the prices. Significantly, the overall prices of Benzene witnessed a hike as the inventories have declined in the market, widening the demand-supply gap in the domestic market. Crude oil prices have inclined in the first week of April, proportionally impacting the overall production cost of Benzene in the US market. The United States Environmental Protection Agency (EPA) has proposed a proposal to considerably cut the toxic chemicals volume in the environment emitted by the chemical industries. Benzene price quotations ranged between USD 1348 to 1483 per MT, FOB Louisiana.

Chemical industries that manufacture, store, and use, Benzene and other toxic chemicals would be required to monitor levels of these air pollutants entering the air at the manufacturing and end-use manufacturing units, fulfilling the Administrator's commitments proposed two years ago. Currently, the law allows firms to expose many people in the United States to large amounts of dangerous pollution from uncontrolled sources in the oil and gas industry.

Apart from the policy consideration, another major facet that has been alarming the Benzene manufacturers and traders is the shortage of skilled labor in shipyards. Delay in fulfillment of the placed orders can be expected by the buyers leading to tight supply amidst the inclined demand from downstream (Styrene and other solvents) units. Automotive and solvent industries are improvising in the country, leading to better market prices of Benzene in the US market. As per ChemAnalyst, Benzene prices are anticipated to rise at a stagnant pace owing to the inclined demand strength and tight supply chain in the domestic and overseas markets.