The Chinese market witnessed an uptrend in Nitro Benzene values during this week, backed by the skyrocketing raw material values across the region. In addition, the demand for the downstream products is also inclining, laying the foundation for the Nitro Benzene's upward price trend.

About 98% of the Nitro Benzene is utilized to produce the downstream derivative Aniline. Due to Aniline's major application in producing rubber accelerators, petroleum refining, phenolics, etc., the demand for the previously mentioned products from the end use chemical, construction, and automotive sectors have been escalating. In addition, easing lockdown restrictions and decreasing pandemic cases encouraged healthy buying sentiments in the domestic market. Hence, the increasing price trend in the Aniline market triggered the Nitro Benzene pricing.

Followed by the downstream Aniline demand, the other reason for inflicting the Nitro Benzene price is the upstream Benzene market. China imports a large quantity of Benzene from South Korea, but the limited supply of the product from the previous week due to the South Korean trucker's strike has disrupted the trade activities. This disrupted supply of the product from South Korea and the poor availability of upstream Benzene in the Chinese market have been imposing the Benzene values to reach USD 1460 on 10th June. As per the aforementioned scenario, the price of Nitro Benzene followed an upward movement.

Moreover, one of the Chinese traders reported that as the factories are reopening, the air and shipping freight charges might rise because of the soaring fuel prices. Furthermore, the EU ban on insuring Russian tankers transporting crude oil to Asia has influenced crude prices throughout the region.

According to the ChemAnalyst, "The Nitro Benzene market is expected to increase further in the upcoming weeks. If the South Korean strike continues, there might be a tight supply of raw materials, resulting in the Nitro Benzene price rise. On the other hand, high inventory levels correlated with healthy buying sentiments in the domestic market are expected to push up the Nitro Benzene values."