For the Quarter Ending March 2022
North America
The benzene market showcased marginal gain initially, followed by a peak rise by the quarter ending March 2022. Strong buying momentum has led the foundation to bullish demand. Moreover, rising demand for downstream Toluene, Nitrobenzene and Mixed-Xylene influenced the price of Benzene to grow. However, due to the geopolitical tension, the upstream Crude price hike affected the Benzene market globally. In addition, the soaring fuel prices and the disruption in shipments owing to the Russian invasion of Ukraine led to a delay in trade, impacting the Benzene values. Henceforth, the price of Benzene in the USA was observed to settle at USD 1235 per MT for FOB Louisiana.
Asia Pacific
During the first quarter of 2022, Benzene prices witnessed a resilient rise in the APAC region. Benzene price increment owed to the spike in upstream crude oil and the rising demand from end-use manufacturing industries. However, there was a pick in market activities after the halt in production due to Winter Olympics and Lunar holidays inflicted on the Benzene cost. Also, the resurgence of the COVID outbreak in China led to a delay in trade due to port congestion, which significantly impacted Benzene prices. Besides, the high operating rates of Benzene plants due to firm demand resulted in solid Benzene charges. Thus, FOB prices for Benzene in India were witnessed at USD 1466 per MT in March 2022.
Europe
Benzene prices showed a mixed sentiment in the European market. At the beginning of Q1, costs of Benzene dropped due to ample availability of product; later in February, a marginal rise in the prices was observed. Sturdy demand from the regional market due to the disruption caused by the Russia-Ukraine conflict laid the foundation for the increase in Benzene prices. Moreover, the upsurge in upstream crude oil also had an impact on the Benzene market. Also, the persistence of the energy crisis in Europe after the suspension of Russian gas resulted in further price hikes. Hence, the FOB prices of Benzene in Germany settled at USD 1150 per MT in March 2022.
For the Quarter Ending December 2021
North America
In Q4 2021, Benzene prices showcased an overall upward trajectory with a marginal gain of USD 40/MT from October to December. Volatility in the upstream crude oil values and demand outlook had supported the pricing trend of Benzene in the region. Moreover, in November, dip in the values of Benzene in South Korea was also reflected in USA market easing the Benzene prices as it imports 35-40% of the product from South Korea. However, in December, Benzene prices rose effectively on the back of surge in the crude oil values as well as firm demand. Thus, FOB Louisiana Benzene prices settled at USD 1064/MT in December. Benzene prices are likely to attain more gains in the upcoming month in effect of upstream crude oil prices.
Asia
In APAC, Benzene market had witnessed mixed during the fourth quarter of 2021 in effect of the volatility in the upstream crude oil values. Moreover, buying moment kept fluctuating depending upon the enquiries from downstream manufacturers. In November, Benzene market appeared to be bullish in India owing to the festive season that led to increment in its prices. However, in December price dynamics of the product had changed due to snapping of crude oil prices along with lull trade activities because of the year end. Hence, Benzene Ex Mumbai prices had attained gain and settled at on USD 1076.93/MT in November while in December prices tumbled down to USD 971.93/MT showcasing a significant drop. However, it is anticipated that Benzene prices will rise in the coming month owing to the expected surge in demand and volatility in crude oil values.
Europe
In the European market, Benzene prices witnessed an upward trend during the fourth quarter of 2021 backed by the firm values of feedstock Naphtha in effect of upstream crude oil fundamentals. Moreover, energy crises led to the production cut that sent ripples to the values of Benzene. Additionally, persistent logistical issues and healthy demand from the downstream Styrene manufacturers further supported the pricing trend of Benzene in Europe. Hence, FOB Hamburg prices were assessed at USD 1111/MT in December witnessing a rise of USD 156/MT since October.
For the Quarter Ending September 2021
North America
Benzene market outlook showcased a marginal decline during the third quarter in the North America. In July, the FOB Louisiana prices of Benzene were assessed at USD1215/MT. A prominent surge in the production activities in USA was witnessed at the beginning of quarter that led to the decline in the prices of Benzene in the US market. Despite the arrival of Ida hurricane in the Gulf Coast of the USA, there was negligible effect upon the prices of Benzene owing to the ample stock availability. Therefore, Benzene FOB Louisiana prices settled at USD 1095/MT in both August and September.
Asia
Asian market witnessed a consistent rise in the pricing trend of Benzene during the third quarter of 2021. Chinese market showcased mixed sentiments, a decline in the prices of Benzene was seen from July to August, but Benzene prices soared in September backed by a host of reasons. Some of major factors involved was the congestion on several ports in China and the shutdown of Ningbo Port followed by the zero-tolerance coronavirus policy that caused supply chain disruption. Benzene CFR Shanghai monthly average price stood at 1188/MT in July, observing a decline of USD 16/MT in August. In India, Benzene prices encountered a steep climb backed by the high demand from various end use industries and upsurge in feedstock crude oil prices. Ex-Mumbai Benzene prices settled at USD 1139.50 in September. Skyrocketing freight charges due to the extreme shortage of containers also sent ripples to the prices of Benzene in the region.
Europe
In Europe, Benzene market witnessed mixed sentiments during the third quarter owing to the volatility in prices of feedstock crude oil during this quarter. At the beginning of Q3, an upsurge in the prices of Benzene was seen but later in September a slump in its value was observed. It was backed by the ample availability of stock with improved production rates and lower export because of lack of Shipping containers in the region. Despite the sturdy demand from international market and adequate availability of Benzene, shortage of containers led to the difficulties in export and piling of stock in the domestic market. Hence, FOB Hamburg prices of Benzene stood at USD 1046/MT in July and jumped to USD 1170/MT in August but later declined to USD 1060/MT in September.
For Quarter Ending June 2021
North America
Global Benzene prices remained influenced by the overall pick up in production and supplies from USA, during this quarter. Post the freezing weather condition, production activities in USA improved effectively by the end of the quarter. However, prices rose considerably since mid-February till mid-May due to supply shortage in the country, which later started easing as soon as the production started picking up pace again in the Gulf of USA. Major refiners in the Gulf of USA analysed the damage due to winter storm to their plants and thus debottlenecked some plant capacities in Q2 to ease the global shortage. Therefore, after reaching unprecedented highs, prices braced normalcy, and finally settling at USD 1140/MT across in Texas USA during the mid of June.
Asia
Asian market encountered shortage of Benzene across the region, due to limited material availability in effect of global plant turnarounds. In Chinese market, prices soared throughout the quarter which increased burden on Chinese manufacturers. In addition, some plant turnarounds including ENEOS in Japan and Malaysian Petroleum Corporation during April also impacted the Benzene availability across the region. While in India, unprecedented surge in new COVID cases in the country dragged the domestic demand for Benzene during this timeframe. However, prices remained sky high, taking cues from international cost pressure. Eventually, after rising effectively for several weeks, prices of Benzene hovered around USD 1061/MT and USD 1188/MT in India and China, respectively.
Europe
European market also encountered a steep rise in prices of Benzene during this quarter, in effect of limited supply from USA and other regional plants. After prolonged supply shortage and plant turnarounds, supply effectively improved in the second half of the quarter, as the trade from US picked up the pace by the end of May. Thus, gaining push from international market, prices of Benzene reached USD 1510/MT for Rotterdam during first week of May.
For the Quarter Ending March 2021
Asia
The Asian market showed resilient demand for Benzene derivatives during the first quarter of 2021. Q3 plant shutdowns and Chinese lunar holidays significantly impacted the Benzene supply in China, that took too long to resume the production completely. Overall production margins remained constrained over surging Brent crude oil rates which touched USD 60 per barrel in March. Meanwhile in the Indian market, strong demand from downstream ABS and LAB manufacturers pushed up the price curve of Benzene. During the quarter, FOB Korea Benzene price was assessed around USD 800-830 per MT in March.
North America
During the first quarter of 2021, the North American market was struggling to satisfy the demand for major upstream chemicals across the region. Freezing winters across the US gulf, led several plants to face unplanned shutdowns, especially in Texas. Fair demand from the downstream sectors for manufacturing thermal insulators, styrene, and polyurethane foams etc. and tight supply spiked up the prices of Benzene across the region. Meanwhile throughout January and February, export/imports remained hindered by weather conditions, though the situation significantly improved till March.
Europe
In the European market, Benzene prices experienced upswing during Q1 2020. The prices of Benzene jumped to one-year high during January amid lower supply and sufficient demand from the downstream sectors. Prices touched USD 835 per metric ton in January, registering record highs since 2020. Freezing fallout in the US and supply constraints from Asia later due to Lunar New Year holidays kept the offers unreasonably high. However, prices started returning to normalcy in March as the supply and logistics activities improved.
For the Quarter Ending September 2020
Asia
The third quarter performance highlighted that Benzene stocks in the Asian market exceeded their last quarter levels as several new Chinese refineries ramped up production while sellers continued to lament over stockpiling inventories. Mixed sales due to uncertain market dynamics while several economies continue to exit lockdowns continued to impact the Benzene consumption. However, with many Southeast Asian refineries implementing production cuts September onwards, and downstream manufacturing units accelerating output in several Asian economies ahead of the festive season, market players believe that the demand-supply gap is likely to strike out a much-needed balance in Q4 2020.
Europe
The third quarter European Benzene market remained lengthened with narrow Benzene-Naphtha spread indicative of the fragile market conditions. The demand for benzene from downstream sectors remained seasonally low in addition to pressure of economic fallout due to COVID-19. The pricing graph last showed an upward trajectory in July and then gradually tapered off due to oversupply situation. Closures of automotive factories and persistently weaker dynamics in the styrene sector hard hit the regional demand. Market players stated there has been a substantial recovery in demand since the last quarter, but not strong enough to push Benzene back to the pre-COVID levels as of now.
North America
The third quarter showed mixed results for the North American Benzene industry. Regional Benzene demand remained firm from the Styrene segment amid a recent uptick in exports as well as stronger Benzene demand in the US. Margins for the mixed xylene sector were pressured amid soft demand from the downstream Paraxylene segment. Wave of production shutdowns due to hurricane Laura led to temporary supply shortage. Prices showed a sharp rebound with rise in upstream crude futures and prospects turning positive as trading windows opened between the US and Asian markets.
