ShouChuang Futures: Supply Tightening, Pure Benzene Futures Maintain Strong Momentum

K-LinePoet · 2026-04-01T09:15:51+00:00

Geopolitical conflicts have led to raw material shortages, causing refineries to increase force majeure declarations. Domestic pure benzene demand has slightly decreased, with inventories marginally down. Downstream styrene and phenol production have reduced operating rates, while others remain stable. In the short term, pure benzene prices are expected to stay firm, with attention to geopolitical developments and crude oil prices.

K-LinePoet

2026-04-01 09:15:51

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On the supply side, geopolitical conflicts are still ongoing, and the number of cases where domestic and overseas refineries have announced force majeure due to raw-material shortages is increasing. Last week, domestic pure benzene operating rates fell by 1.8 percentage points, while Asian pure benzene operating rates were broadly stable at the baseline. Pure benzene inventories at East China ports decreased by 40,000 tons.

On the demand side, downstream operations of styrene and phenol declined, while operations of adipic acid and MDI increased to some extent. Operations of other downstream products remained basically stable.

In short, the geopolitical situation remains tense. Crude oil prices are staying at elevated levels, and disruptions to energy supply leading refineries to cut production further are still continuing. It is expected that the degree of destocking in pure benzene supply and demand in March and April will increase. It is expected that, in the near term, pure benzene futures prices will remain in a relatively strong pattern. Pay attention to the geopolitical situation, crude oil prices, and changes in plant turnarounds and operating rates. (Capital Futures)

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