Asia Benzene Market Trends

Asian benzene assessments fell by $17/mt on September 18, reaching $1,142.33/mt FOB Korea, tracking the continued downward trend in upstream markets.

Crude oil futures declined during the Asian afternoon trading session on September 18, as reports emerged of alternative transportation routes following damage to Saudi Arabia’s East-West pipeline, easing market concerns over supply disruptions.

During the assessment window, two transactions were reported:

• BP sold a November-loading cargo FOB Korea to GS Caltex at $1,136/mt.
• TotalEnergies purchased a November-loading cargo FOB Korea from Trafigura at $1,136/mt.

In the CFR Taiwan market, local participants indicated that negotiations for October-arrival cargoes remained above a premium of $50/mt over FOB Korea benchmarks. However, no deals were heard to have been concluded, as price levels were deemed too high and unpalatable for buyers.

“I am not looking for October spot cargoes right now because prices are too expensive. Crude oil also weakened this week, so I believe the market is currently in a wait-and-see mode,” said a buyer based in Chinese Taipei.

Regarding downstream plant news, an industry source stated on September 17 that Thailand’s PTT Phenol plans to shut down its phenol/acetone unit in Rayong province for maintenance in November.