Last week, domestic benzene prices dropped significantly due to the drag from overseas prices. Although port inventories continued to decline, China remained the main destination for exports due to weak overseas demand. Imports remained at a high level in March and April.
Moreover, as multiple terminal facilities are expected to undergo maintenance and shutdowns, mainly in the northern market, demand is likely to be further weakened. The market may once again return to a situation where prices are higher in the south and lower in the north. Considering the supply and demand situation, it is expected that benzene prices will follow crude oil in a range-bound consolidation this week. Attention should be paid to the situation in the Middle East and changes in downstream operating rates.
