Marginal drop in the crude values stabilize the Benzene prices
- 29-Mar-2022 7:09 PM
- Journalist: Gabreilla Figueroa
After a rise in the first week of March due to high crude prices, Benzene prices have stabilized by the week ending 25th March due to a marginal drop in the crude values and reduced trading activities in the international market. The Russia-Ukraine war caused the prices of crude to skyrocket, which influenced the fluctuation in the market trend of Benzene in early March. In addition to the war, China's lockdown has also been significantly impacting the prices of Benzene in the regional market. The lockdown has caused serious trouble for international trading from Chinese ports.
The conflict between Russia and Ukraine has been severely impacting crude prices since the previous month. The changes in prices of crude directly affects the price of Benzene, as it is one of Benzene’s derivative. Crude prices witnessed a drop last week which caused the prices of Benzene to stabilize. Due to skyrocketing freight charges, certain countries have been restraining their trading activities to safeguard their margins.
Benzene prices have nearly stabilized in the global market. However, China has observed an increment in its prices as the COVID resurgence led to lockdown thereby affecting the overall production in the affected cities. Lockdown restrictions have led to the closure of certain cities affecting local transportation and causing delays in shipments from China. South Korea, being the major exporter of Benzene to China, observed the prices at USD 1090/tonne FOB Seoul on March 25 showcasing no change from the previous week.
According to ChemAnalyst "Benzene prices are likely to rise in the global market as the price of crude might rise in the upcoming weeks due to the ongoing Russia-Ukraine war. Crude prices may also raise the freight charges, which is likely to increase the traded price of Benzene. If the shortage of supply persists due to shut down in China, then it may lead to an upward price trend of Benzene.”