For the Quarter Ending June 2025
North America
• U.S. Benzene Spot Prices were relatively flat during Q2 2025, buoyed by consistent local production and muted downstream demand. The Price Index fluctuated around multi-week means as a result of balanced market fundamentals.
• Prices were stable in the quarter as demand was hesitant and refinery runs went on uninterrupted, though there were some bearish indications in the freight cost increases and higher derivative plant use.
• Demand in major downstream segments like styrene, cumene, and phenol remained weak, constraining offtake. Usage from industries and the automotive sector was constrained by general macroeconomic headwinds.
• Despite geopolitical tensions and crude oil volatility, Benzene Production Cost Trends remained quite manageable. Higher crude production by OPEC+ and tariff-related disruptions provided a complicated cost scenario but did not much drive benzene costs up.
• Benzene supply remained uninterrupted, as refinery and reformate stream operations stayed stable. While the fire at Marathon’s Galveston Bay refinery briefly constrained reformate supply, consistent domestic output offset any supply-side pressure.
• The Benzene Price Forecast at the end of Q2 pointed to mild bullish potential, driven by rising freight rates and gradually recovering derivative production. However, price gains were expected to be limited without improvement in overall macroeconomic sentiment.
Asia-Pacific
• South Korea’s Benzene Spot Price declined to around USD 660/MT FOB Seoul in early May and remained soft throughout Q2 2025 due to oversupply and persistently weak demand.
• The Q2 price decrease was attributed to muted derivative consumption (particularly styrene and phenol), elevated inventories across Asia, and lackluster interest from major buyers, including China.
• Demand stayed sluggish during the quarter, as downstream sectors delayed procurement amid trade uncertainties and limited export sentiment. China's Labour Day holiday in May further dampened activity and price momentum.
• Benzene Production Cost Trends reflected mixed signals — while crude and naphtha prices declined, reducing input costs, higher shipping expenses (from blank sailings and tight container space) partially offset these gains.
• Benzene supply remained adequate through Q2 despite lower refinery run rates. Producers like Yeochun NCC operated cautiously, and LNG-linked power tariffs added to production costs.
• The Benzene Price Forecast remained bearish, with market participants expecting continued narrow-range fluctuations unless export orders or regional buying activity improved meaningfully in the second half of the year.
Europe
• In Germany, Benzene Spot Prices stabilized after earlier softness, trading near multi-year lows during Q2 2025. The market saw only a modest recovery from April’s low points.
• A slight upward movement in prices during late Q2 was influenced by stronger Asian prices and rising domestic energy costs, particularly from steam cracker operations. However, persistent weak demand kept gains in check.
• The Benzene Demand Outlook stayed subdued across automotive, electronics, and construction sectors. Derivative consumption fell short of expectations, and procurement remained limited to immediate needs.
• Elevated natural gas and LNG spot prices lifted benzene production expenses, leading to a firmer Benzene Production Cost Trend, even in the face of weak demand.
• Domestic output ran at reduced capacities in Q2, with inventories cushioned by prior import flows. Although overall supply was balanced, tighter Asian availability and refinery outages created localized support for pricing.
• The Benzene Price Forecast suggested range-bound movement through early Q3, unless a turnaround in downstream demand or Asia-led pricing recovery provided support. Marginal upside was anticipated from detergent sector demand.
South America
• The Benzene Price Index in Brazil remained relatively stable through Q2 2025, with prices showing resilience despite global volatility in crude oil and ongoing geopolitical challenges.
• In July 2025, benzene prices experienced a mild increase, primarily driven by rising electricity tariffs, higher operational costs, and steady upstream crude output.
• The Benzene Spot Price remained within a moderate range, supported by a balanced supply chain and stable domestic output from major integrated refinery-petrochemical complexes in São Paulo and Rio de Janeiro.
• The Benzene Demand Outlook stayed weak across major end-use sectors such as styrene, phenol, aniline, and intermediates used in nylon, rubber, and resins.
• On the supply side, Brazil faced persistent inventory pressure due to consistent domestic production and steady imports from the U.S. and Europe. Logistics remained fluid, but higher natural gas and power prices eroded production margins.
• Industrial buyers were cautious due to macroeconomic uncertainty, high borrowing costs, and inflation. Derivative demand stayed soft, especially in automotive, construction, and packaging applications.
• The Benzene Production Cost Trend was influenced by surging energy tariffs (up to 9%) and feedstock cost volatility. Operational constraints, including truck driver shortages, further impacted distribution.
• While regional benzene consumption showed low volatility, Brazil’s localized cost pressures created upward price movement, even in the absence of strong demand recovery.
• Export competitiveness declined due to low-cost material influx from Asia (especially China and South Korea), while local producers began pivoting toward sustainable technologies, such as chemical recycling and circular economy feedstocks.
• In the near term, Brazil’s benzene market is expected to remain structurally oversupplied, with price growth constrained by limited downstream offtake and global trade headwinds.
MEA
• In Q2 2025, the Benzene Price Index in Saudi Arabia declined, primarily due to weakening global crude benchmarks and soft domestic consumption trends.
• In July 2025, benzene prices remained largely stable, hovering near recent lows. This stability was supported by rising naphtha prices and capped by weak downstream sector performance.
• The Benzene Spot Price was influenced by continued imports from India, where surplus material and lower local demand offered Saudi buyers competitive procurement options.
• Domestic production at integrated complexes remained steady, but much of it was consumed internally. Imports continued to fill gaps in styrene and phenol sector needs.
• The Benzene Demand Outlook remained subdued due to soft construction, automotive, and plastics demand. Buyers adopted a wait-and-see approach amid macroeconomic uncertainty and tighter profit margins.
• Saudi Aramco’s crude pricing decisions, such as a USD 0.20/bbl increase in Arab Light for Asia, reflected confidence in tight oil supply, but this failed to materially impact domestic benzene prices.
• The Benzene Production Cost Trend remained mixed—rising naphtha prices and inland freight costs lifted costs slightly, while stable port operations and captive production offered partial relief.
• Seasonal challenges and logistical strain (including potential disruption in Indian exports and container shortages) added risk to future benzene availability, although current inventory levels were adequate.
• Export demand from Asia softened due to preference for cheaper Indian and Southeast Asian benzene, reducing Saudi competitiveness.
• With downstream sectors lacking momentum, the Saudi benzene market is expected to remain range-bound in the short term unless regional economic and energy indicators improve.
For the Quarter Ending March 2025
North America
During Q1 2025, benzene prices in North America experienced a mix of volatility and downward pressure, shaped by fluctuating crude oil and naphtha prices, soft demand in key sectors, and broader economic uncertainties. January began with relative stability as production resumed post-holiday, with prices briefly rising to USD 918/MT FOB Louisiana amid improved operational activity.
However, weak downstream demand from polymers, aromatics, and solvents, alongside cost-sensitive market sentiment, limited any sustained gains. February saw another brief price hike, peaking at USD 951/MT, due to supply constraints from weather-related shutdowns and concerns over impending tariffs on imports from Canada, Mexico, and China. Still, persistent inflation and sluggish refining activity weighed heavily on the market. By March, benzene prices declined by 5.3% amid falling crude oil and naphtha values, subdued refinery utilization, and bearish market sentiment.
Despite pockets of resilience from the styrene segment and polymer market stability, overall demand remained inconsistent. Entering Q2, the benzene market faces ongoing uncertainty tied to global political tensions, feedstock price movements, and evolving trade policies, with only cautious optimism for price recovery.
APAC
During Q1 2025, Benzene prices in the APAC region, particularly South Korea, experienced a consistent downward trend driven by weak demand, declining crude oil and naphtha prices, and macroeconomic uncertainties. The quarter opened with a price drop due to slow downstream activity and soft market sentiment. Although there was a brief recovery mid-January as operations resumed post-holiday, bearish momentum persisted due to limited buying interest from key sectors such as polymers, aromatics, and styrene. February saw continued pressure, amidst the tight supply and cautious procurement ahead of the Lunar New Year, leading to price recovery. In March, a 3.3% price decline occurred despite a supply disruption caused by a major outage at the Daesan Petrochemical Complex. Increased imports and low upstream cost support further weakened prices. Overall, sluggish global demand, trade uncertainties, and overcapacity in China’s petrochemical sector kept market sentiment pessimistic. Even supportive government policies and temporary supply issues couldn’t offset broader economic challenges. Plants such as LG chemicals, Lotte Chemical Corporation in South Korea, Idemitsu Kosan Corp in Japan were under maintenance in the Asian market in the mid quarter.
Europe
During Q1 2025, benzene prices in Europe exhibited notable volatility, shaped by fluctuating feedstock costs, weak downstream demand, and persistent macroeconomic challenges. The quarter began with relative price stability, supported by resumed post-holiday operations and a modest rebound in production activity. Benzene prices rose briefly in mid-January, buoyed by climbing naphtha costs and improved sentiment, but this upward trend was short-lived. The ongoing weakness in downstream sectors—particularly polymers, aromatics, and solvents—coupled with subdued industrial output and inflationary pressures, limited price recovery. European benzene production remained stable throughout the quarter, though low operating rates in Western Europe and high energy costs constrained output flexibility. Rising LNG and crude oil prices further inflated production costs, while concerns over a potential EU gas price cap and geopolitical instability added uncertainty. Despite a resilient styrene segment and steady demand in paints and coatings, the broader polymer market softened toward March, as buyers delayed purchases in anticipation of further price declines. A 2.3% price drop in Germany by quarter-end underscored the downward momentum. Overall, the European benzene market closed Q1 on a cautious note, with limited prospects for near-term recovery.
MEA
In Q1 2025, benzene prices in the Middle East and Africa (MEA) region, particularly Saudi Arabia, demonstrated a predominantly downward trajectory influenced by multiple macroeconomic and market-specific factors. Throughout the quarter, benzene prices experienced consistent pressure from declining crude oil prices, which directly impacted naphtha—benzene's primary feedstock—thus reducing production costs. Despite supportive government initiatives aimed at boosting exports and industrial growth, the market remained subdued due to weak demand from key downstream sectors such as polymers, aromatics, and solvents. The polymer sector, a significant consumer of benzene via styrene, saw reduced activity owing to cautious procurement and global economic uncertainty. Manufacturing activity also slowed, with December marking a 12-month low in production growth, and although crude prices were briefly raised for Asian buyers, demand remained sluggish. Increased imports and inventories further exacerbated downward pricing pressure. However, toward the end of March, prices stabilized slightly as inventories leveled and demand from end-use industries like construction and paints showed modest improvement. Overall, the quarter reflected bearish sentiment, supply-demand imbalances, and persistent economic headwinds across the benzene value chain.
South America
In Q1 2025, benzene prices in South America experienced notable fluctuations, driven primarily by the volatility in crude oil prices and shifting demand trends across key sectors. The quarter started with a bearish market sentiment, influenced by declining crude oil prices, which in turn lowered the cost of naphtha, a key feedstock for benzene production. As a result, benzene production costs dropped, leading to price reductions. However, demand remained sluggish, especially from sectors like polymers, aromatics, and solvents, which further pressured benzene prices. The polymer industry, a major consumer of benzene through styrene, also saw price declines due to weaker demand from automotive and construction sectors, compounded by lower raw material costs and a cautious market outlook. By mid-quarter, economic volatility and trade uncertainties, particularly related to geopolitical tensions and tariff concerns, added to the downward pressure. In March, benzene prices showed some stabilization, supported by steady demand from construction and paint sectors, which somewhat counterbalanced the weak performance in other downstream industries. Despite this, the overall outlook for benzene in South America remained cautious, reflecting global market trends and local demand challenges.
For the Quarter Ending December 2024
North America
In Q4 2024, benzene prices in the U.S. followed a downward trend, influenced by broader market uncertainties and weak demand from key sectors such as styrene monomer, phenol, and cumene. The weak local demand from major benzene consumers exacerbated the pricing pressure, while fluctuations in naphtha prices, a critical feedstock for benzene production, further impacted its pricing.
The declining benzene prices were also attributed to ongoing concerns about a potential surplus in the oil market, driven by the upcoming U.S. presidential election and slower global oil demand growth. Market participants had to navigate significant volatility, with refining margins facing additional pressure.
In addition, the U.S. chemical industry expressed concerns about the impact of a prolonged dock workers' strike on the Gulf and East Coasts, which had the potential to disrupt exports and increase supply surpluses. As production remained moderate, supply chain challenges continued to affect both imports and exports, further contributing to the subdued market sentiment.
APAC
In Q4 2024, benzene prices in the South Korean market continued their downward trajectory, influenced by weak demand and stable production costs. Market sentiment remained bearish, with little expectation of significant price increases in the near future due to the subdued demand outlook. The demand from major benzene consumers, including styrene monomer, phenol, and cumene, remained low in domestic markets, further pressuring prices.
Price fluctuations were driven by a balance between supply and demand, with no major shifts anticipated. Naphtha prices, a key feedstock for benzene production, also remained stable, contributing to the lack of substantial price changes. Local refiners adjusted their prices marginally, but overall trading activity remained steady, with minimal interest in short-term charters.
Geopolitical tensions, particularly the conflict between Israel and Lebanon, added uncertainty to the market but failed to result in significant rate changes. As a result, the supply of benzene remained moderate, while demand from key sectors remained weak, contributing to a bearish market outlook.
Europe
In Q4 2024, benzene prices in the German market continued their downward trend, following the momentum of previous weeks. The decline was driven by weakening naphtha prices and ongoing geopolitical uncertainties, which put downward pressure on global benzene prices. Several factors, including production costs, demand levels, and supply chain disruptions, contributed to the persistent drop.
Key benzene consumers, such as styrene monomer, phenol, and cumene, experienced reduced domestic demand, further exacerbating the price decline. Fluctuations in naphtha prices, a critical feedstock for benzene production, also played a significant role in the overall market dynamics. Despite a resolution of a U.S. port strike, European shipping stocks remained weak, and the supply of benzene from European manufacturers was limited due to reduced demand.
The demand outlook for benzene remained sluggish, with low to moderate levels of demand from downstream sectors. As a result, benzene prices remained under pressure, and producers struggled to maintain profitability amidst low demand and high inventories.
MEA
In Q4 2024, benzene prices in the Saudi Arabian market dipped in early October, influenced by a weaker domestic demand and reliance on Indian and other Asian markets for fulfillment. The market faced multiple challenges, including a warning from the Saudi Energy Minister about potential drops in oil prices, which created further volatility in the market. Demand from key downstream sectors, such as styrene and other aromatics, remained sluggish, contributing to a decline in benzene prices.
Despite this, the supply situation remained moderate, with Saudi Arabia depending on external markets for demand. Additionally, the geopolitical tensions, especially around crude oil quotas and regional trade dynamics, continued to impact benzene prices. Qatar's ports saw a rise in transshipment volumes, reflecting regional trade shifts.
Despite an increase in supply, the demand forecast for benzene from local manufacturing sectors remained weak due to reduced activity in packaging and construction industries. Logistical issues and low feedstock costs further suppressed market activity, keeping benzene prices under pressure throughout the quarter.
South America
In the fourth quarter of 2024, benzene prices in Brazil continued to decline, following a downward trajectory that began in early September. The market faced several challenges, including uncertainties in both domestic and international markets, contributing to the weak pricing momentum.
Demand from key benzene consumers, such as styrene monomer, phenol, and cumene, remained sluggish, further exacerbating the pressure on prices. Fluctuating naphtha prices, a critical feedstock for benzene production, also played a role in shaping the pricing trends. Meanwhile, geopolitical tensions, particularly concerns surrounding the upcoming Brazilian presidential election and the effects of a potential oil surplus, continued to heighten market volatility. The domestic production capacity of benzene remained tight, with logistical challenges such as port congestion further complicating the supply chain.
As a result, market activity remained low, leading to continued downward pressure on prices. Despite slight fluctuations due to changes in crude oil prices, the overall demand outlook remained weak, making it a challenging period for producers and traders in Brazil’s benzene market.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Benzene market experienced a persistent decline in prices, reflecting a challenging pricing environment. Significant factors influencing this downturn include weakening demand from key sectors like styrene monomer and phenol, alongside supply chain disruptions and fluctuating naphtha prices.
These dynamics have contributed to a 24% decrease in prices compared to the same quarter last year. In the USA, which has witnessed the most substantial price changes, the market has seen a negative trend with a 10% decrease from the previous quarter in 2024. Hurricanes significantly affected the petroleum markets by disrupting crude oil production and refining operations. Crude oil prices were also supported by growing optimism about potential interest rate cuts by the US Federal Reserve. Lower lending rates were expected to stimulate consumption, thereby increasing oil demand in the world's largest economy.
Offshore oil and natural gas production units faced substantial risks from hurricanes and tropical storms, necessitating emergency protocols to evacuate nonessential personnel and temporarily cease production. The Dow Chemicals, Royal Dutch remained shut temporarily due to the impact of Hurricane accompanying the dim demand outlook. Overall, the pricing environment in North America for Benzene in Q3 2024 has been characterized by a notable decrease, reflecting ongoing challenges and uncertainties in the industry.
APAC
In Q3 2024, the Benzene pricing landscape in the APAC region remained stable, reflecting a consistent market sentiment. Various factors influenced market prices, including stable demand from downstream sectors, moderate supply levels, and fluctuations in crude oil prices. These elements played a crucial role in shaping Benzene prices and maintaining a balanced pricing environment throughout the quarter. This consistent pricing trend underscores the resilience and equilibrium in the Benzene market in the APAC region during Q3 2024. Freight rate indices had been offering mixed signals, but the most recent data showed a consistent decline in rates as shipping companies and shippers finalized annual contracts for the transpacific route. Additionally, demand for benzene from sectors like aromatics and phenol remained stable and uninterrupted, supported by ample inventories to meet market needs. In other parts of Asia, downstream demand had yet to hit a turning point, with most benzene buyers remaining cautious about securing forward spot positions. Although firm European benzene prices had sparked some interest from Chinese exporters, arbitrage opportunities were limited by logistical difficulties associated with long-haul shipments.
Europe
The third quarter of 2024 for Benzene pricing in the Europe region has been characterized by a significant downtrend in prices. This decline can be attributed to various factors such as weak demand, decreased production costs, global geopolitical tensions, and ample local inventories influencing naphtha prices, which in turn impact benzene production costs. The oversupply of naphtha in the European market has led to a sharp drop in prices, creating challenges for producers in managing fluctuating raw material costs and squeezed profit margins. The reduced demand from downstream sectors like styrene and other aromatics has further pressured benzene prices in the region. In the Netherlands, the market has experienced the most significant price changes in the region. The quarter saw a -17 percent decrease from the same period last year, with a -14 percent decrease from the previous quarter i.e., Q2 in 2024. The price comparison between the first and second half of the quarter showed a -7 percentage change.
MEA
In Q3 2024, the Benzene pricing scenario in the Middle East and Africa region witnessed mixed signals with a significant decline in the last month of Q3 of 2024, with Saudi Arabia experiencing the most notable price changes. Various factors contributed to this downward trend, including a decrease in demand from end-use manufacturing units, reduced import costs from Asian exporting countries, and a supply crunch in the market. These elements collectively influenced the market dynamics, leading to a decrease in prices. Seasonal fluctuations and geopolitical tensions further added to the negative sentiments impacting Benzene prices across the region. The demand outlook for benzene from end-use manufacturing units had remained relatively soft but positive. However, supply chain disruptions and a drop in export volumes from the international market resulted in a decline. Union leaders had warned that Indian government ports could face major disruptions if negotiations to prevent an indefinite dockworker strike failed. This warning came as India was working to improve port efficiency to handle rising export volumes amidst diversified supply chains. In Saudi Arabia specifically, the pricing environment has been characterized by instability, with a 12% decrease compared to the same quarter last year and a 7% decline from the previous quarter in 2024.
South America
Throughout Q3 2024, the South American region experienced a notable downward trend in Benzene prices, with Brazil showcasing the most significant price changes. Various factors have influenced this market shift, including production costs, demand levels, and supply chain disruptions. The weakening demand from major consumers like styrene monomer, phenol, and cumene has added pressure to the pricing dynamics. Additionally, fluctuations in naphtha prices, a key feedstock for Benzene production, have directly impacted pricing trends. The overall trend in Q3 reflects a 14% decrease compared to the same quarter last year, with a 9% decline from the previous quarter in 2024. Fluctuations in naphtha prices, a key feedstock for benzene production, had directly impacted pricing trends. At the same time, OPEC's diminishing influence on global crude markets had shifted attention to Brazilian economic indicators, heightening concerns about market volatility. In August, troubling economic data emerged, including rising unemployment claims, a weakened manufacturing index, and a disappointing payroll report. Despite initial fears about the economy, investors believed that while a slowdown was occurring, an immediate collapse was unlikely. Instead, the economy appeared to be in a late-stage business cycle, marked by a gradual deceleration rather than a sharp downturn, offering some stability amid ongoing market fluctuations.
Frequently Asked Questions (FAQs)
1. What was the average Benzene Spot Price in major markets during Q2 2025?
o In Q2 2025, the Benzene Spot Price averaged around USD 950–980/MT FOB USG in the U.S., USD 660/MT FOB Seoul in South Korea, and USD 800–830/MT FD NWE in Germany.
2. Who were the top Benzene producers in the United States in Q2 2025?
o Major benzene producers included ExxonMobil, Chevron Phillips Chemical, LyondellBasell, and Shell Chemicals.
3. What was the Benzene Price Forecast for Q3 2025 at the end of Q2?
o The Benzene Price Forecast indicated a modest upward bias driven by firming feedstock costs and potential recovery in derivative activity, though capped by macroeconomic and trade uncertainties.
4. What factors influenced the Benzene Production Cost Trend globally in Q2 2025?
o The Benzene Production Cost Trend was shaped by naphtha and crude price fluctuations, refinery throughput rates, energy cost inflation (notably in Europe), and logistics disruptions due to geopolitical tensions and shipping rate spikes.
