The outlook for the Asian benzene market is cautiously optimistic

Recently, market participants said that in the first half of the year, a large number of downstream derivative plants will be put into operation in Asia, and the market remains cautiously optimistic about the prospect of pure benzene demand in Asia in the first half of 2022

Market participants predict that in 2022, there will be about 2 million tons/year of new benzene production capacity in Asia, mainly in China.

Compared with other regional markets, China's benzene market is expected to be more optimistic

Taking into account the planned maintenance of equipment in Southeast Asia, the consumption of pure benzene in 2022 is roughly the same as that in 2021, and the operating rate is expected to drop by about 3% to 74%

From the perspective of the market price of styrene, the most important downstream derivative of pure benzene, driven by the strengthening of the international crude oil market price over the past month, the domestic styrene market price in China has reversed its upward trend, from a low of 7,550 yuan in March in early December 2021.

Overall in 2022, there are more production plans in China's upstream and downstream, but the supply of pure benzene is still less than the demand, the downstream development is faster than the upstream, there is a time lag between supply and demand reaching production, and the increase in supply will have a negative impact on the market in the short term, but long-term demand The boom is still boosting the market, and it is expected that the price of China's benzene market will remain high in 2022