Benzene prices have been fluctuating globally due to volatility in feedstock prices, particularly crude oil, and changes in demand outlooks. Crude oil price movements directly impact naphtha prices, which in turn affect Benzene production costs. Recent trends in both crude oil and naphtha prices are linked to broader commodity market dynamics, influencing the global Benzene landscape. The geopolitical stress and the implementation of new policies and sanctions consecutively have an impact on the trade volume which has and may further impact the supply chain in the global market.

In Asia, Benzene prices are on a downward trajectory, largely driven by falling crude oil prices, which are putting pressure on the petrochemical sector. The recent drop in crude prices stems from geopolitical tensions and trade uncertainties, reducing the cost of raw materials for Benzene production and squeezing margins for manufacturers across the region. South Korea has responded by designating certain industrial zones as "crisis response areas" eligible for financial aid, while China’s petrochemical markets remain mixed after reopening post-Lunar New Year, compounded by fears of a renewed US-China trade war.

Moreover, Benzene manufacturing units such as CNOOC oil and gas and Sinopec unit 1 witnessed plant shutdown for a short period amidst the maintenance work had further impacted the supply chain. As a ripple effect, the APAC region might have witnessed the impact on the inventories.

Meanwhile, the US Benzene market has seen price increases, with concerns arising over tariffs on imports from Canada, Mexico, and China. The tariffs, which are expected to escalate costs for US manufacturers and disrupt supply chains, are anticipated to lead to a rush to frontload shipments before a 30-day tariff pause ends. Once implemented, higher production costs and delivery delays are likely to impact the market. Businesses are bracing for rising raw material prices and reduced access to imports, creating a complex environment for Benzene production and trade.

In Europe, the Benzene market faces its own set of challenges, with rising energy costs and inflationary pressures weighing on production. January’s inflation uptick in the Eurozone, driven by energy costs, has left the European Benzene market grappling with low operating rates in Western Europe, with limited hope for a near-term recovery. A growing shortage in the Mediterranean may increase intra-regional trade, while Benzene and its derivatives are under pressure due to struggles in the construction and automotive industries. The trans-Atlantic flow of Benzene could help balance the market during lower derivative demand in winter.

ChemAnalyst forecasts that Benzene prices will be more influenced by fluctuations in feedstock prices than by demand from products like styrene. Additionally, competition from non-EU countries, particularly China, is pressuring Europe’s Benzene value chain. Despite this challenging outlook, some stakeholders remain cautiously optimistic about a recovery by 2025.