Asia Pacific Region Foresees a Plunging trend in the Benzene Market

Benzene prices have been falling continuously for the past two weeks in the Asian market. The price drop is supported by the drowning demand from the domestic and regional markets, followed by poor buying sentiments. Moreover, the plummeting upstream Crude prices are further pulling down the values of its derivatives.

The upstream Crude oil costs are dropping due to the poor buying sentiments in the Chinese market. After importing a huge quantity of upstream Crude from Russia in May and June, the availability of Crude in the local market was huge. Thus, the sufficient amount of the product led to the low demand from China, negatively impacting Crude prices. Following the upstream Crude price trend, Benzene price also drops.

In India, the price of Benzene was tumbling around INR 101000/ tonne by the end of 22nd July. The weak demand from the downstream derivatives Aniline, Cumene, and Phenol manufacturers resulted in the piling up the Benzene stocks in the Indian market. Hence, the manufacturers are clambering to sell off their stockpiled goods and start new production. The mindset of the manufacturers to start fresh led to the discounted prices of the existing commodity.

In addition, the bearish purchase from the other downstream automotive, construction, and textile sectors because of its decreasing production of plastics, resins, and nylon is dragging down the Benzene price. However, during the early third quarter, the downstream Styrene Monomer and the Caprolactam market was weak, narrowing the Benzene market in the Asian region. Also, the industries have picked up their production in the previous quarter, further influencing the Benzene market this month.

According to the ChemAnalayst forecast, "the price of Benzene is likely to follow the downtrend in the coming weeks. The demand from the downstream sectors might remain bearish this month, supported by poor buying sentiments. Also, the weak raw material prices will likely show a negative impact on the Benzene pricing. Besides, purchasing activities from the consumer's end could be weak in the forthcoming weeks."