Benzene and styrene prices surge

Benzene and styrene prices hiked in the first trading day (February 18) after Chinese New Year holiday. East China benzene stood at 6,000-6,100yuan/mt, and CFR China benzene was around $818-819/mt, around 650-800yuan/mt and $100/mt higher than the pre-holiday level.

Sinopec revised up benzene listed price twice in H1 February by 600yuan/mt in total to 5,400yuan/mt, and raised on February 18 again by 400yuan/mt to 5,800yuan/mt.

Benzene market fundamentals remained healthy and port inventory continued decreasing. January and February imports would keep low.

In upstream, oil prices hiked amid Texas cold snap, lending strong supports to chemicals. In downstream, styrene prices surged due to the Fukushima earthquake and massive unit shutdowns in the US. On Feb 18, styrene prices surged to $1,230/mt FOB Korea, $1,545/mt FOB Rdam, and 58.08 cent/lb or $1,280/mt FOB USGC.

Mitsui Chemical shut its cracker due to the earthquake on Feb 15, and Sumitomo has resumed operation at its cracker after short closure. Idemitsu Kosan shut its 210kta styrene unit in mid-Feb for 2-month planned maintenance.

In the US, most styrene units were shut due to power outage, with total capacity nearly 5 million mt/year.

The surge in styrene prices was mainly driven by the unexpected shutdown in the US, and the operation would resume after the cold snap, and the speculations would also cool down. In China, Anhui Jiaxi is raising its operating rate, and Sinochem Quanzhou petrochemical is expected to get styrene at its 250/450 kt/year POSM unit in end March. China domestic supply would remain ample.