Global Benzene Prices Continue the Slump Amidst the Slow Demand

Benzene prices in the global market witnessed a slow momentum in the first half of November. These fluctuations were governed by the weak demand outlook for Benzene from the polymer, aromatics, solvent production, and consumption units. At present, the global petrochemical market is volatile and much more prone to variations, as some manufacturers are aiming to complete the pending targets while others are preferring to destock the available Benzene stockpile as the year comes to an end.

Crude oil prices continued their downward trend in recent weeks, driven by a strengthening US dollar and mounting concerns over a potential global supply glut in the coming year. The International Energy Agency (IEA) warned of a likely surplus in the oil market for 2025, citing slowing demand growth from China and increasing global production levels. The agency further noted that the surplus could expand significantly if OPEC+ proceeds with its plans to resume previously curtailed output.

The recent slump in crude prices has been exacerbated by the dollar’s continued rally, which reached its highest level in two years. The strengthening of US currency has made commodities, including Benzene, more expensive for buyers using other currencies. This has added pressure to oil markets including Benzene and contributed to the broader decline in energy prices. The Asian and European markets are expected to be affected by these geopolitical changes, as the freight charges and the trading volume may get impacted proportionally, impacting the final prices of Benzene in the domestic ports.

Freight demand is rising, fueled by intermodal activity, imports, and freight GDP growth, though the for-hire trucking sector has yet to see significant benefits. Private fleet expansion continues to dampen truckload demand, even as spot rates climb, and contract rate discussions gain momentum. Shippers are accelerating bookings to avoid higher late-November freight costs, with vessels nearing full capacity. Carriers are set to reduce capacity by 15–18% in November, with recent sailing cancellations leading to space shortages since late October.

The ripple effects of crude oil's volatility are also being felt in downstream markets, including Benzene. As a key feedstock derivative of crude oil, Benzene’s pricing dynamics are closely linked to oil market fluctuations. The current weakness in crude oil prices, coupled with concerns over a potential oversupply, has introduced uncertainties in Benzene markets, potentially impacting pricing trends and buyer sentiment in the months ahead.

Market participants have been closely monitoring developments in both crude oil and its derivatives as these shifts in energy prices continue to shape broader market dynamics. ChemAnalyst reports that a rebound in Benzene prices may face further delays due to persistently weak demand from major downstream industries, such as styrene, cumene, and other aromatics, across the global market.