World and China’s benzene market operation and analysis
¡ª¡ªShen Yili, Aromatic analyst of Zhejiang Huafon Import and Export Trading Co., Ltd

2016-03-23 16:41:08
Manager Shen first reviewed the global benzene market through market scale and trade structures. 
In market scale, global benzene capacity was mainly distributed in NE Asia, North America and Europe, and the growth rate had slowed down recent years. While in downstream, ethylbenzene (to make styrene) occupied a largest proportion among benzene consumption. Then, she introduced the trade flow of global benzene. Main destinations are North America, China and Europe, while main origins are South Korea, japan, Thailand, South America and India. 

After that, Ms. Shen analyzed the benzene market in China. The benchmark price in China was depended on Sinopec benzene nomination and spot price in E China. Thus, nearly 70% of the prices were affected by Sinopec. Except for effects from the U.S., South Korea and upstream crude oil, naphtha, influencing factors on domestic prices are supply and demand structure, and regional circulation in China. 

At last, after reviewing the market in Q1 2016, she looked forward to the Q2-Q4 benzene market from oil-based benzene cash flow, downstream feedstock pressure, and arbitrage margins between RMB and USD as well as U.S. and Asia benzene market. In the long term, China domestic benzene price will behave strongly as supply would be tight in Q2 2016. In Q3, market would mainly appear weakness, but entering the peak season in end Q3, benzene will recover gradually. In Q4, market may fluctuate widely as both benzene and downstream new capacities will come on stream. 
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