Strong support from the cost side drives East China benzene prices sharply higher (Aug 28–Sep 3, 2026)

I. Weekly Market Overview

This week, East China benzene spot prices rose strongly, with the mainstream trading range at 8,110–9,040 RMB/ton, and the price center of gravity shifted significantly upward. Driven by the US military strike on Iran and the sudden escalation of geopolitical conflict in the Middle East, international crude oil prices surged, with Brent firmly holding above $90/barrel. This provided strong cost support for benzene and rapidly heated up market sentiment. Although benzene supply has returned and demand remains at low levels—with end-user plants resistant to high feedstock prices and primarily consuming inventories, while East China ports continued to accumulate stocks—the influence of fundamental logic on market prices declined substantially, and contract traders showed improved acceptance of high benzene prices. In summary, the core driver of this week's rally was the strong cost-side boost from geopolitical conflict rather than fundamental improvement. A short-term geopolitical risk premium remains, but the trend of weakening supply–demand fundamentals at the margin remains unchanged.

II. Benzene Forecast for Next Week:

East China benzene spot prices are expected to maintain a firm tone next week. Geopolitical disruptions are likely to keep international crude oil prices biased upward, providing solid cost-side support. On the supply side, although domestic units continue to resume operations and import arrivals have increased, frequent crude oil price fluctuations are limiting the release of benzene circulation volumes. Downstream processors have relatively low integrated margins, end-product sales remain sluggish, and they are primarily consuming feedstock inventories with cautious purchasing attitudes. It is expected that the benzene trading center of gravity in the East China market will shift upward next week, with prices projected in the range of 8,600–9,100 RMB/ton.