As per the recent assessment by ChemAnalyst, Benzene prices seems to be falling continuously, taking pressure from multiple industrial factors. First and foremost factor is fluctuations in the global crude oil values, which has been putting multidimentional pressure on different commodities.

In Asia, domestic Benzene prices have been adjusted lower during late December 2024, reflecting the decline in international crude oil futures, which has led to a drop in global Benzene prices. This downward movement in crude oil prices affects the entire value chain, causing a reduction in the prices across the region. As naphtha prices are linked to crude oil prices, any decline in crude oil prices also impacts the cost of naphtha production, which in turn lowers the production cost of Benzene.

Additionally, the ongoing economic volatility and weak demand in key industries, including polymers, aromatics, and solvents, contribute to the pressure on Benzene prices. These industries' reduced demand further dampens market confidence and delays any potential recovery in prices. The situation is compounded by limited supply from China’s coal-based Benzene units, which account for a significant portion of the country’s Benzene production capacity. China's restrictions on coal usage and the expected continuation of output curbs intensify the reliance on imports, driving up demand.

At the same time, government policies, such as zero tariffs on crude oil used for naphtha production in several regions, are helping alleviate some financial pressure on the petrochemical industry. These policies aim to reduce production costs by ensuring a steady and competitive supply of crude oil and naphtha. The flexible tariff system, which allows adjustments based on economic conditions, provides relief to refiners and petrochemical companies, helping them manage the fluctuations in crude oil and naphtha prices.

With fuel consumption rising, particularly in India, refiners are accelerating expansion plans and diversifying crude sourcing to secure a steady supply of these key feedstocks. As India's peak demand for oil and petrochemicals is expected to occur later than China’s, oil companies are increasingly focusing on the Indian market to meet this future demand.

In conclusion, Benzene prices are closely tied to fluctuations in crude oil and naphtha prices, as these are the primary feedstocks for its production. Economic factors, global demand for petrochemicals, and government policies all play a significant role in shaping the Benzene market, with upstream costs directly influencing its price trajectory. As the market navigates challenges in 2025, strategies to stabilize feedstock prices and address supply-demand imbalances will be crucial in determining Benzene's future pricing trends.