Market Overview
In June 2025, China's domestic benzene market experienced sharp volatility. According to the pricing cycle of Sinopec East China (May 26 to June 25), the average price reached 6,103 RMB/ton. By June 27, the mainstream price in East China was 5,980 RMB/ton, reflecting an increase of 80 RMB/ton or 1.36 percent compared with the same period last month.
The market was primarily influenced by macroeconomic developments. On June 10, renewed diplomatic contact between China and the US drove benzene prices from 5,800 RMB/ton to 6,050 RMB/ton. Simultaneously, frequent maintenance at hydrogenated and petroleum benzene plants in northern China resulted in regional supply tightness. On June 13, geopolitical tensions between Iran and Israel pushed prices to 6,350 RMB/ton within a single day.
In late June, however, the announcement of a ceasefire between Iran and Israel triggered a rapid retreat in crude oil futures, eroding the geopolitical risk premium. Benzene prices returned to around 6,000 RMB/ton as the market shifted focus back to fundamentals. Despite stable demand expectations for July, hidden inventory carried over from June has prompted downstream buyers to delay procurement, awaiting clearer price signals.
International Trade and Prices
From June 1 to June 20, South Korea exported a total of 160,642 tons of benzene, including 148,633 tons to mainland China and 12,009 tons to Taiwan.
On the international front, FOB Korea benzene prices increased from 707.5 USD/ton to 720.5 USD/ton. CFR China prices rose to 736.5 USD/ton. In contrast, FOB Rotterdam declined slightly to 690.5 USD/ton. Production capacity increased globally, with new output from Lotte’s 350,000-ton phenol-acetone unit in Korea and restarts at petrochemical units in Malaysia.
Supply and Demand
China's domestic benzene output in June was estimated at 1.76 million tons, with an operating rate of 82 percent. Inventory at East China ports rose from 119,000 tons to 171,000 tons during the month. Hydrogenated benzene output stood at 312,500 tons with a 60.15 percent operating rate.
On the demand side, June saw improved operating rates in the styrene sector (75.85 percent), while other downstream segments such as phenol-acetone, caprolactam, and aniline showed slight declines in utilization.
Cost and Profitability
As of June 26, international benzene prices (FOB Korea) reached 720.5 USD/ton. Domestic production profits were mixed. Reforming units with aromatics yielded a theoretical profit of 268 USD/ton, while disproportionation units showed limited profitability amid a narrowed benzene-toluene spread of just 300 RMB/ton.
Outlook for July
Geopolitical uncertainties remain, including unresolved tensions between the US and Iran. In addition, the expiration of tariff relief and potential OPEC+ production increases will impact sentiment. Global crude oil prices may remain under pressure despite seasonal demand recovery in gasoline and jet fuel.
Domestically, downstream buyers are showing signs of restocking, yet high import volumes and hidden inventories pose headwinds. While demand for benzene may improve in July, particularly in the aniline sector, concerns over styrene oversupply and external volatility may suppress price growth. Market participants should also monitor profitability trends in disproportionation routes, as margins are under pressure.
Benzene prices in East China are expected to fluctuate between 5,900 and 6,200 RMB/ton, while petroleum benzene in Shandong may trade between 5,850 and 6,300 RMB/ton.
Contact Us
Phone: +86 133 8222 3993
Email: harold@high-mountain.cn
Website: www.high-mountain.cn
