The inventory at the main ports in East China has accumulated to 149,000 metric tons, continuing to increase on a month-on-month basis, exerting strong supply pressure. The industry's operating rate remains at a relatively high level of 79.18%, ensuring stable domestic supply. A new plant in Shandong is scheduled to come on stream in mid-to-late September, further widening the expected supply in the future.
In the downstream sector, the main consumer, the styrene industry, has seen an increase in maintenance plans during September and October, leading to expectations of reduced demand for pure benzene. The operating rates of other downstream industries (such as phenol, caprolactam, and aniline) have generally declined, with most operating at a loss, failing to provide effective support for pure benzene demand. There are no signs of improvement in terminal orders, and inventories of downstream products have risen, reflecting poor terminal consumption and pick-up.
It is anticipated that the pure benzene market will continue to exhibit a weak and volatile pattern in the short term. While there is a lack of strong drivers for a unilateral upward movement, the absolute price is already at historically low levels, limiting the potential for further significant declines.
In summary, the supply and demand fundamentals of the pure benzene market lack upward drivers, and prices are expected to remain under pressure. Close attention should be paid to changes in key factors such as the extent of recovery in downstream demand, fluctuations in the crude oil market, the arrival of imported cargoes, and the actual progress of new capacity commissioning.
