Benzene prices followed an upwards trajectory in the Asian markets on Wednesday. The sharp price rise was bolstered by stronger upstream crude and naphtha values which were further bolstered by firm regional demand trends. FOB Korea Benzene price were assessed higher at USD 900 per tonne which showed a sharp day on day increase of USD 20 per tonne. CFR China benzene prices were assessed at the USD 910 per tonne levels which also showed USD 20 per tonne rise. Moreover, the downstream styrene prices were assessed to be USD 1045 per tonne.

The prices are expected to maintain an uptrend in the upcoming week also with the stronger crude and naphtha values expected to maintain the current situation in the prices and the regional demand is also expected to remain bullish. With this the prices are expected to rise by another 5% to 10% in the upcoming week in the Asian markets.

Benzene is an aromatic hydrocarbon. It is colourless and has a characteristic aromatic odour with toxic vapour. It is obtained as a by-product during the Naphtha cracking process. Benzene is a key feedstock for several petrochemical intermediates including ethyl benzene which is used for styrene production, cumene which is consumed in acetone and phenol production, cyclohexane which is consumed in nylon chains, and nitro benzene for aniline production. The global demand for benzene stood at around 57 million tonnes in 2020 and is expected to grow at a CAGR of 3.81% during the upcoming years till 2030.

As per ChemAnalyst, “the benzene prices are expected to maintain the uptrend during the upcoming week given that the market conditions with the stronger crude and naphtha values are supporting a price rise. The demand for benzene from the downstream sectors such as styrene, aniline etc. is also expected to rise with the expected growth in the respective end use sectors.”