For the Quarter Ending March 2024
North America
The first quarter of 2024 witnessed a bullish trend in the Benzene price dynamics amidst the continuous incline in the production cost and the striking demand outlook for the commodity from the end-use manufacturing units. The demand for key aromatic including Benzene improved during the quarter and same can be seen in the prices. The increased cost of delivery and production, coupled with a slight rise in crude oil prices, continued the recent upward trend.
This followed reports from the industry indicating a larger-than-expected decrease in U.S. crude oil stocks during the quarter. However, the gains were limited due to a larger-than-anticipated increase in inventories of petroleum products. This has led to concerns about heightened tensions in the conflict in the Red Seas region and increased pressure on the supply chain.
Additionally, there was a surge in rates for liquid chemical tankers and containers traveling from East Asia and China to the US this week, attributed to disruptions at the Panama and Suez canals, highlighting the logistical challenges in the current situation. Moreover, the demand for Benzene from styrene and other monomers remained on the higher end throughout the quarter leading to a price hike in Q1. The quarter-ending price for Benzene in the US market was USD 1233 per MT, FOB Louisiana.
APAC
In the first quarter of 2024, Benzene prices in the APAC region increased overall, with South Korea experiencing the most significant price changes. This upward trend was attributed to several factors, including increased demand from downstream industries, higher production costs, and fluctuating delivery expenses. The percentage change in Benzene prices from the same quarter last year was 13%, indicating a significant increase.
Additionally, there was a sharp increase in prices from the previous quarter in 2024, reflecting the ongoing upward trajectory. The price comparison between the first and second half of the quarter showed a 12% increase, further highlighting the bullish pricing environment. In South Korea, Benzene prices were particularly affected, with a consistent increase throughout the quarter. This was due to strong demand from domestic and international markets, as well as higher delivery costs at domestic ports.
The South Korean market experienced a bullish sentiment, with a moderate to high supply of Benzene and increased demand from downstream industries such as styrene and other aromatics. The quarter-ending price for Benzene in South Korea was USD 1050 per metric ton, reflecting the overall positive pricing environment. The increased demand and fluctuating production costs contributed to the upward trend in Benzene prices in the APAC region for Q1 2024.
Europe
The first quarter of 2024 saw an increase in Benzene prices in the European region. Market prices were influenced by several factors during this period. Demand from downstream industries such as styrene, cumene, and pharmaceuticals remained steady, leading to consistent but subdued demand for Benzene. Concerns over supply constraints and extended transit times also caused price fluctuations. Geopolitical tensions and trade disruptions in the Red Sea impacted trade routes, resulting in delays and higher freight costs.
In the Netherlands market, Benzene prices saw the most significant changes. Overall, there was an upward trend in prices, with a significant percentage change from the same quarter last year. As the quarter ended, the latest price for Benzene FOB Rotterdam in the Netherlands was USD 1350 per metric ton. The pricing environment for Benzene in Europe during the first quarter of 2024 was positive, with increasing prices reflecting the demand-supply dynamics and geopolitical factors impacting the market.
MEA
In the first quarter of 2024, Benzene prices in the Middle East and Africa (MEA) region experienced a consistent upward trend, indicating a positive pricing environment. Several factors influenced market prices during this quarter. Firstly, there was stable and moderate demand for Benzene from various end-use industries such as styrene, cumene, and solvents. This steady demand contributed to price stability and increases in the region. Additionally, geopolitical tensions in the Red Sea led to increased delivery costs at domestic ports, further impacting Benzene prices. The supply chain also faced challenges, with tight supply availability and increased crude oil and naphtha prices. These factors contributed to the upward trajectory of Benzene prices in the MEA region. Saudi Arabia, the largest producer in the region, saw the most significant price changes in Benzene prices. The country experienced a 4% increase in Benzene prices compared to the same quarter last year. In Q1 2024, there was a 1% increase in prices compared to the previous quarter. Notably, there was a significant 9% price increase between the first and second half of the quarter. The quarter-ending price for Benzene in Saudi Arabia was USD 1005 per metric ton CFR Al Jubail, reflecting the overall positive pricing trend in the country. Overall, the Benzene pricing environment in the MEA region for Q1 2024 was characterized by increasing prices, driven by stable demand, geopolitical tensions, and supply chain challenges.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the North American Benzene market experienced a decline with moderate supply and demand. Major container ports in the United States had already reached their projected peak in import cargo volume for the year, resulting in moderate demand for Benzene from downstream sectors such as styrene and cumene. Global difficulties in the petrochemical industry influenced trade dynamics for various chemical products.
The fourth quarter of 2023 was expected to see improved demand off-takes from the downstream sector, and the domestic chemical sectors were anticipated to exhibit a better demand outlook. Benzene retailers demonstrated destocking behaviour towards the end of Q4. In the USA, Benzene prices declined by 9% compared to the previous quarter due to subdued demand from downstream sectors like styrene and aromatics.
The forthcoming inflation report from the Labor Department is expected to show that businesses kept overall prices stable for the second consecutive month. The Department of Energy (DoE) has stated that there was no alteration in the crude oil inventories held within the Strategic Petroleum Reserve (SPR). The latest price of Benzene FOB Louisiana in the USA for the past quarter was USD 1002/MT.
APAC
In Q4 2023, the benzene market in the APAC region experienced a bearish situation with a weak demand outlook and overall production costs influenced by declining naphtha and crude oil prices. The decrease in benzene volume imported from South Korea to China was less severe compared to the previous year, reflecting weak demand in China accompanied by rising import prices. The South Korean benzene market faced subdued demand from downstream industries, leading to a continued decline in domestic prices. The quarter's conclusion indicated potential lower production rates and a subdued demand outlook for styrene, cumene, and other aromatics, with no observed plant shutdowns during the period. Buyers showed hesitancy owing to unfavourable buying signals, anticipating heightened supply in Asia due to congestion in the Panama Canal and increased run rates in toluene disproportionation (TDP) units. Both domestic and international buyers faced difficulty in accepting prevailing offer levels, given that downstream customers were cutting order quantities. The percentage change from Q3 to Q4 2023 was 18%, and the price percentage comparison between the first and second half of the quarter in South Korea was -5%. The latest price of Benzene FOB Seoul in South Korea in Q4 2023 was USD 866/MT.
Europe
The fourth quarter of 2023 was bearish for the benzene market in Europe due to sluggish demand and excess supply. The overall outlook remained negative despite moderate supply. One of the primary reasons for the decline in demand was the slow pace in the manufacturing of intermediate goods, energy, and durable and non-durable consumer goods. The downstream sectors such as styrene and cumene also displayed a weak demand perspective, which further influenced benzene prices throughout the quarter. The crude oil production cut imposed by Saudi Arabia on the Asian market also impacted the production cost. The percentage change in price from the last year's same quarter was -8%, while the change from the previous quarter was 2%. Market observers noted a persistent decrease in benzene bid-offers throughout the week. In the past month, Aramco, the state-owned energy group from Saudi Arabia, lowered the January OSP differentials for all its crude grades bound for Europe, the Mediterranean, and the United States. European benzene prices witnessed a decline as a result of fluctuations in upstream factors.
MEA
In Q4 2023, the benzene market in the MEA region underwent a bearish trend characterized by weak demand, recent increases in port imports, and ongoing price declines. The negative industry outlook for the future of the benzene market was influenced by the quarter-end, resulting in lower production rates and a subdued demand outlook for styrene, cumene, and other aromatics. The decline in production was linked to a sluggish pace in manufacturing both durable and non-durable consumer goods, with a notable decrease in the production of intermediate goods and energy. Saudi Arabia, the world's leading benzene exporter, experienced a stable market with moderate supply and demand. The country predominantly imported benzene from Asian countries, primarily India and South Korea. The conclusion of the quarter hinted at the possibility of improved price dynamics in Q1 2024, with better demand from the downstream sector. Saudi Arabia's recent decision to cut crude production and supply might influence the overall market dynamics of benzene in the domestic market. The latest price for the selected country in the past quarter was USD 901/MT of Benzene CFR Al Jubail in Saudi Arabia.
South America
The Benzene market in South America experienced stability with moderate supply and low to moderate demand from downstream businesses throughout the fourth quarter of 2023. The market remained bearish due to weak performance in the retail sector and minimal demand from end-use manufacturing units. The expected incline in the prices of upstream naphtha impacted the production cost of Benzene. Furthermore, the Israel and Palestine conflict continued to impact the upstream prices of crude oil and naphtha, leading to lower interest from buyers. The quarter ended on a positive note due to an initial expansion in Brazil's manufacturing sector, driven by an increase in sales and production in September. Brazil faced challenges in meeting its domestic demand for oil, leading to fluctuations in Benzene prices in the country. The demand outlook for Benzene from major end-use manufacturing units remained soft, yet moderate demand from the acetone market with limited supply levelled the overall price dynamics of Benzene. The quarter end may lead to lower production rates and a low demand outlook from styrene, cumene, and other aromatics. The latest price of Benzene FOB Santos in Brazil in the current quarter is USD 840/MT.
For the Quarter Ending September 2023
North America
Throughout the third quarter of 2023, Benzene prices continued to move northwards due to an inclined demand outlook and higher production costs. The cost of domestically producing benzene has increased due to higher crude oil prices and growing demand. In the United States, conflicting forces were at play, as prices dropped while wages rose. One contributing factor to this new situation is a shortage of workers, largely due to aging populations in major economies. The global market has consistently increased crude oil prices during the first half of Q3, leading to higher costs for Heavy Aromatic naphtha and its derivatives. The International Longshore and Warehouse Union (ILWU) members had approved a second tentative agreement with West Coast port owners. This development ends the prolonged period of uncertainty and trade congestion caused by the dock workers' strike. According to the International Energy Agency (IEA), global documented oil inventories had decreased, primarily driven by reductions in OECD stocks. Preliminary data suggests that there were additional declines towards the quarter's end. In the United States, crude oil reserves had also decreased, and prices were on a higher edge more quickly than expected, underscoring the broader challenge of meeting the growing oil demand.
Asia-Pacific
Benzene price dynamics throughout the third quarter of 2023 continued to incline drastically owing to the inclined demand and fluctuating crude oil prices in the international market. In the Asia-Pacific market, benzene prices have risen due to increased feedstock (crude oil) costs within the domestic market and growing demand from various downstream industries such as styrene, automotive, resins, and maleic anhydride. The OPEC basket prices have been steadily increasing, impacting the production cost of benzene in the South Korean market. Operational activities in the country have remained stable, with manufacturers increasing their workforce, supported by sustained economic conditions in the regional market. According to reports from traders, the gasoline markets in Asia saw a significant weekly increase of around 37%. This surge was attributed to restricted supplies, low fuel stockpiles at major trading hubs, and robust demand. Additionally, the International Energy Agency (IEA) stated that the supply cuts implemented by OPEC+ had led to a depletion of inventories for the rest of the year, potentially resulting in further price hikes. The outlook for benzene demand remained optimistic, driven by strong demand from the cumene and styrene consuming markets.
Europe
Benzene prices in the European market surged drastically as the elevated operational cost Production rates have remained high due to increased supply and growing demand from various downstream sectors, including styrene, automotive, resins, maleic anhydride, and others. The German automotive industry has seen improvements, leading to greater demand for benzene, a key raw material for styrene production. However, the solvent and acetone markets have experienced moderate conditions. The German Economy Ministry had issued a warning, stating that the country's economy was facing adverse effects from elevated energy prices and interest rates despite an uptick in demand. The confluence of persistent inflation and sluggish growth contributed to the economic challenges in Germany, with some economists describing this situation as a "slow recession." The European naphtha market is experiencing increased uncertainty due to several factors. Firstly, the upstream crude oil market has become more unstable and difficult to predict. Secondly, exports have been affected by a significant increase in freight rates. Lastly, the overall economic outlook lacks clarity, adding to the uncertainty within the market. According to the most recent forecasts by the European Commission, which is the EU's executive body, Germany is anticipated to face an extended period of economic downturn in 2023.
Middle East
Throughout the third quarter of 2023, benzene prices showcased inclined sentiment on account of fluctuating crude oil prices and demand outlook. At the start of the quarter, there was a rebound in oil prices, driven by Saudi Arabia's decision to extend its voluntary reduction of oil production by one million barrels per day (bpd). This decision followed the OPEC+ agreement reached in June to control oil supply until 2024, with Saudi Arabia committing to an additional voluntary cut in the previous quarter. This move has led to higher production costs and an increased demand for styrene, a polymer solvent, in the domestic market. The global crude oil prices rose consistently in the first half of Q3, putting pressure on Heavy Aromatic naphtha and its derivatives. The Saudi Arabian benzene market has continued to experience stability in prices, mainly due to limited supply from the Asian market. The government officials in the energy ministry suggest that these production cuts could be extended and intensified. Consequently, the supply of benzene from Asian exporters like India and South Korea may face restrictions, potentially affecting benzene input costs.
South America
The Brazilian benzene market experienced a bullish price trend due to heightened domestic and international demand in the third quarter of 2023. Petrobras attributed its reduced quarterly profit to various factors, including lower global oil prices, a significant 40% decrease in diesel crack spreads (the price difference between industrial motor fuel and crude oil), and increased operating expenses. The Central Bank of Brazil (BCB) decided to reduce its Selic policy rate by 50 basis points in mid-Q3, lowering the interest rate to 13.25% after approximately a year of maintaining a steady rate and facing political pressure. Brazil's oil production had shown a consistent upward trend, with projections suggesting that the country could become the fourth-largest global oil producer. This growth potential was attributed to significant oil reserves, particularly in pre-salt reserves, and increased exploration and drilling activities. National apparent consumption (CAN), which accounts for production and imports minus exports, has decreased by 4.6%. This decline was associated with various supply chain dependencies on the chemical industry. These trends in the chemical sector also influenced regional market prices. This resulted in inclined demand for benzene in applications like plasticizers and the petrochemical market (styrene, acetone, aniline), which in turn has had a steady impact on benzene prices.
For the Quarter Ending June 2023
North America
Throughout the second quarter of 2023, Benzene prices continued to move southwards on account of declined demand outlook and higher production costs. The major facet that impacted the quarterly price of Benzene in the US market included crude oil price fluctuations and the demand outlook from domestic and international markets. A slanted request standpoint for raw petroleum has raised the costs alongside the higher creation rate. Benzene interest from downstream (cumene and styrene) remained somewhat on the stale edge because of adequate material accessibility. Be that as it may, Asian nations have high expectations from the US market for the inventory of items before the conclusion of the market on the record of public occasions. US purchasers kept on spending short of what they did a year earlier — besides on movement. Quarterly spending had declined for the third month straight, while without precedent for over two years, ostensible spending development is presently negative also. In contrast, the economic conditions in the US market had gotten worse as a result of the raging inflation pressures and fears of a financial crisis brought on by the failures of Silicon Valley and Signature Bank towards the start of the quarter.
Asia-Pacific
Benzene price dynamics throughout the second quarter of 2023 continued to decline drastically owing to the weak demand and fluctuating crude oil prices in the international market. Benzene costs in the Chinese market stayed stale on the record of stable interest strength. Raw petroleum costs changed in the positive heading as the Gulf nations had brought the costs up in mid-quarter. The Chinese market exhibited more slow functional rate amid Labour’s Day festivity. Inventories were adequate, be that as it may, their efficiency rate in the nation was low with moderate interest viewpoint for the item from end-use producing units. Moreover, the PMI of China slipped in the second quarter of 2023, and the development of the genuine GDP (Gross domestic product) in China went to 6.3 percent, contrasted with a similar quarter of the earlier year. Gross domestic product alludes to the complete market worth of all labor and products that are delivered inside a country each year. It is a significant mark of the monetary strength of a country. Genuine Gross domestic product is adapted to cost changes and is, in this manner, viewed as a critical pointer for monetary development. Two of the major benzene producers, Hanwa TotalEnergies and SECCO petrochemicals, situated in South Korea and China, respectively, were under scheduled maintenance.
Europe
In the second quarter of 2023, benzene prices witnessed declining sentiments in the European market backed by fluctuating demand outlook for the product from downstream (styrene and other solvent) industries. Declining momentum was captured by the benzene prices in the second half of the quarter as the crude oil (raw material) prices retarded, consequently declining the production cost amidst the slow demand. The economic uncertainties and the declaration of recession in the country impacted the overall market dynamics of Benzene in the European market. The logistics issue and the economic uncertainties impacted the overall market dynamics of petrochemicals in the country. 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 the product from the automotive and coating sector remained on the lower edge, impacted by the protest rallies occurring in the European market. The industrial operation rates in the country remained on the lower edge, and buyers restricted themselves from placing higher orders.
Middle East
Throughout the second quarter of 2023, benzene prices showcased mixed sentiment on account of fluctuating crude oil prices and demand outlook. The expansion in the interest for the item in downstream (styrene and other dissolvable) enterprises affected the general market elements of Benzene in the homegrown market. The cargo charges have leaned between the Bay and Asian nations, prompting higher bringing-in costs. The corresponding effect on the general market elements of Benzene was seen in the homegrown market. The Saudi Middle Eastern government had cut the operational pace of unrefined petroleum, which subsequently brought interest up in the domestic and global markets. In addition, the bringing in volume had ascended in the nation when contrasted and the product volume. Then again, higher costs and work lack in the nation had, in a roundabout way, added to expanding the general market elements of petrochemicals in the homegrown market. Farabi Petrochemicals Organization, the Saudi-based worldwide forerunner in Direct Alkyl Benzene or LAB (a surfactant utilized in home consideration and clothing items) working its petrochemical buildings in the Realm, executed an arrangement to get 50% of offers in Extraordinary Situate Substance Pte. Ltd.
South America
All through the second quarter of 2023, Benzene costs kept on moving southwards by virtue of declined request viewpoint and higher creation costs. The significant aspect that affected the quarterly cost of Benzene in the Brazilian market included raw petroleum cost variances and the interesting viewpoint from homegrown and global business sectors. A skewed solicitation point of view for crude petrol has raised the costs close to the higher creation rate. Benzene interest from downstream (cumene and styrene) remained to some degree on the lifeless edge as a result of sufficient material openness. Nevertheless, Asian countries have exclusive standards from the US market for the stock of things before the finish of the market on the record of public events. The South American buyers continued to spend shy of what they did a year sooner — other than on development. Quarterly spending had declined for the third month in a row, while unprecedented for north of two years, apparent spending improvement is as of now negative too. Conversely, the monetary circumstances in the regional market had deteriorated because of the furious expansion tensions and fears of a monetary emergency welcomed by the disappointments of Silicon Valley and Mark Bank towards the beginning of the quarter.
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.
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
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.
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.
