For the Quarter Ending March 2023
North America
Throughout the first Quarter of 2023, Benzene prices continued to move northwards on account of an inclined demand outlook and higher production costs. The decreased temperature had inclined the demand and selling cost of Crude Oil, significantly impacting overall market prices of Benzene in the North American region. BASF Total Energies declared force majeure in January Inclining trend for benzene prices continued in mid Quarter due to tight supply. The price of Benzene fell marginally towards the quarter end as the product's production cost and demand strength shifted slightly. Domestic output for the commodity was low in the market as crude oil prices eased marginally and stockpiles ramped up to meet domestic demand.
Asia-Pacific
The Asia-Pacific region witnessed an inclined market trend for Benzene in the first Quarter of 2023. The final prices of Benzene rose as market dynamics returned following the Christmas season from the previous Quarter. A brief halt in market activities occurred in the Asian market because the Lunar holidays widened the demand-supply gap in the country amidst the rising demand outlook. The end-user industries began operations, and the Asian market witnessed an increase in product inquiries. Despite falling OPEC crude oil prices in the Asian market, suppliers kept prices high as product restocking resumed. In the Asia Pacific market, inventories were adequate. Major players of Benzene went under maintenance shutdown, tightening the supply with end-use manufacturing units.
Europe
In the First Quarter of 2023, benzene prices witnessed mixed sentiments in the European market backed by fluctuating demand outlook for the product from downstream (styrene and other solvents) industries. Positive momentum was captured by the benzene prices in the first half of the Quarter as the crude oil (raw material) prices inclined, consequently raising the production cost. A little improvement in industrial outlook was observed in the German market as compared to the previous Quarter, influencing manufacturing activity and trade frequency. However, constrained supply was still observed, and despite mild purchase activity, factories continued to face high energy prices. Towards the quarter end, benzene prices declined as the demand for products from the automotive and coating sector remained on the lower edge, impacted by the protest rallies occurring in the European market.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the Benzene market showcased mixed sentiments on account of fluctuating upstream (crude oil) prices in the regional market. The mid-quarter witnessed a hike in Benzene price as the demand-supply gap increased along with increased production cost. The US rail workers went on a strike demanding higher wages and a better working environment. Towards the end of last quarter, the declining temperatures and festive holidays impacted the production rate of Benzene in the domestic market. The purchasing activity from downstream (styrene and maleic anhydride) declined proportionally, impacting the final prices of Benzene in the US market.
Asia-Pacific
The Asia-Pacific market witnessed a continuous decline in Benzene prices on account of a slow production rate and weak demand dynamics. The initial quarter witnessed a fall on account of declining upstream (crude oil) prices in the international market. Consequently, the suppliers and end users stockpiled the product. Moreover, the demand for the product from downstream (styrene and maleic anhydride) in October was slow, proportionally impacting the final prices. Moreover, the second half of the quarter witnessed other factors, such as truckers' strikes and a slow demand supply chain. The Chinese market remained quiet throughout the quarter on the back of COVID restrictions and slow demand for the product. Suppliers received fewer inquiries impacting the final prices in the Asian market.
Europe
Throughout the last quarter of 2022, the Benzene market showcased weak market sentiments on the back of fluctuating upstream (crude oil) prices in the international market. Along with varying crude oil prices in the domestic market, the demand for the product declined. Elix polymer in Spain shut down its styrene acrylonitrile plant leading to slow demand for the product in the European market. The inflation rate stabilized, yet the overall Benzene market followed the southward momentum. With increasing energy prices and a slow employment rate, the demand for the product declined amidst the seasonal changes occurring in the region. Solvent and styrene industries showcased slow demand impacting the final prices of Benzene in the European market.
For the Quarter Ending September 2022
North America
Benzene price movement declined in the North American region throughout quarter III of 2022 on the back of a decline in orders from the downstream processors. However, the price decrease was significant from the second month of Q3, and prices decreased noticeably due to an increase in product stocks amid no significant demand from downstream industries. At the same time, the production costs decreased due to a decrease in upstream Natural gas prices due to the availability of excess supplies. Consequently, after witnessing a plunge of almost 10% in the previous quarter’s prices, Benzene prices in the USA settled at USD 996/MT at the end of Q3.
Asia
Benzene price trend fluctuated in Asia during Q3 of 2022. During the 1st two months, the prices decreased in the region due to declined orders from domestic downstream industries. Major producers in China cut down operational rates on Government’s instructions due to heat waves in summer. At the same time, depreciation in currency values and economic slowdown further affected domestic manufacturing activities. While in the final month of the quarter, the price trend revived in some Asian countries like India and was seen stable in Thailand and South Korea, the price movement persisted in China. At the end of Q3, Benzene prices in China and South Korea settled at USD 997/MT and USD 882/MT, respectively.
Europe
A shifting price trend of Benzene was observed in the European region during Q3 of 2022. Initially, the product prices rose during the first month of the quarter due to high upstream costs amid the increase in inflation rates. However, in the second month, the price trend shifted, and Benzene prices dived on the back of declined demand by the downstream industries. Due to this, the product inventory levels rose, and prices were negatively affected. Key domestic producers curtailed their productions amid high energy prices and rationing of input supplies by the exporters. After witnessing a decrease of 6.3% against the Q2 values, Benzene discussions in Germany settled at USD 785/MT.
For the Quarter Ending June 2022
North America
In the second quarter of 2022, the Benzene price showcased an upward trajectory movement in the North American region. The tight supply of upstream Crude due to the sanctions on Russian imports influenced the Benzene market. Hence, following the skyrocketed upstream crude price, the Benzene price trend also increased across the region. Moreover, the resumption of the Chinese domestic market after the COVID restrictions plunged, and the demand for Benzene rose, which inflated Benzene pricing. Also, the downstream Styrene market showed significant growth after the manufacturing plants resumed. As a result, post witnessing a steady price trend in the US market, the FOB Louisiana price settled at USD 1827/ tonne in the quarter ending June.
APAC
The Benzene market witnessed an oscillating trend in the APAC region in the second quarter of June 2022. Initially, the price of Benzene dropped in the Indian domestic market due to the fall in international crude prices. The demand from China plummeted owing to the market shutdown caused by the rising COVID cases, which led to the oil price cut by Saudi Aramco in May, pulling down the Benzene pricing. Later, after the ease of the lockdown restrictions, the demand from the Chinese market grew, triggering the Benzene values. The export charges from India rose along with the freight costs, further inflating the Benzene pricing. Therefore, the price of Benzene was recorded at USD 1420/ tonne FOB JNPT.
Europe
During the second quarter of 2022, the prices of Benzene moved in an uptrend in the German market. The price rise was supported by the rising upstream Crude values due to supply shortage. Owing to the Russia-Ukraine conflict, the EU government implemented sanctions on Russian oil imports, which led to the limited availability of Crude. Moreover, the demand from the downstream derivative phenol, acetone, and cumene manufacturers rose, inflating the Benzene market. The domestic market's healthy buying activities and constrained supply provoked the suppliers to revise their offers. Hence, the price of Benzene was observed at USD 1427/ tonne FOB Hamburg in June.
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.
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.
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.
