Rising global demand for petrochemicals to drive up benzene prices

The free on board (FOB) Korea price of benzene is on a rise as supply in East China and cost and freight (CFR) China markets remains tight, while inventories are low. The supply of benzene from Asia to the US has reduced as demand from China is rising consistently.

South Korea is one of the major exporters of benzene and its derivatives in the world, while China is one of the top producers and consumers. Chinese consumption is also expected to exceed the consumption in the US. The paints and coatings industry is a major consumer of aromatic solvents including benzene. In the textile industry, benzene is used in dyestuffs, emulsion concentrations of pigment printing, production of nylon and other synthetic fibres.

The FOB South Korea price of benzene was $655.48 per metric ton in January 2021, which went up to $838.04 per metric ton in March 2021, recording a growth of 27.85 per cent. It further increased by 15.18 per cent to reach $965.23 per metric ton in June 2021, according to Fibre2Fashion’s market analysis tool. It is expected to jump by 12.72 per cent to reach $1,088 per metric ton by the end of this year.

Fibre2Fashion News Desk (KD)