Sinopec raised its domestic benzene list price by 500 yuan per metric ton ($72/mt) to 9,000 yuan/mt ex-warehouse on Monday, equivalent to about $1,133/mt CFR China on an import-parity basis, extending a recent uptrend as oil prices surged amid escalating tensions in the Middle East, according to industry sources.
The increase marked the third consecutive hike, bringing total gains to 1,000 yuan/mt over recent adjustments. The list price has risen steadily, from 8,000 yuan/mt on March 10 to 8,400 yuan/mt on March 12, then to 8,500 yuan/mt on March 24, and now to 9,000 yuan/mt.
The rally reflects strengthening fundamentals in China's domestic market, where benzene prices have been supported by rising crude, tightening regional supply expectations, and growing concerns over force majeure declarations across Asia.
Market participants said the combination of upstream volatility and anticipated reductions in domestic production is expected to further constrain availability in the coming weeks.
Domestic spot discussions have followed the upward trajectory. The midpoint of the OPIS benzene assessment in East China rose 7.1% week on week, climbing from 8,170 yuan/mt ex-tank on March 20 to 8,750 yuan/mt ex-tank by March 27. Traders said buying interest has remained firm as downstream producers move to secure feedstock amid expectations of tighter supply.
Sentiment has been further bolstered by developments in South Korea, one of Asia's key benzene exporters. Market participants said authorities are reviewing potential restrictions on petrochemical exports following an earlier limitation on naphtha shipments, raising concerns over reduced regional availability. In addition, two major South Korean producers have indicated plans to cut benzene supply, adding to bullish momentum across the market.
Export market dynamics have mirrored the domestic trend. The midpoint of the OPIS FOB Korea benzene assessment increased 6.6% week on week, rising from $1,048/mt FOB Korea on March 20 to $1,117/mt FOB Korea by March 27, reflecting tighter prompt availability and stronger regional demand.
Downstream support has also contributed to the firming tone. Gains in styrene monomer values have improved derivative margins, sustaining benzene consumption even as prices rise. Market participants said the linkage between benzene and SM continues to underpin buying interest, particularly as producers seek to capitalize on favorable margins.
At the same time, prolonged uncertainty surrounding the Middle East conflict has kept risk premiums elevated across energy and petrochemical markets.
Concerns over disruptions to feedstock flows, including naphtha and condensate shipments from the Gulf, have prompted refiners and traders to reassess supply chains and secure alternative cargoes where possible.
While current supply levels remain manageable, traders said expectations of tightening balances, rather than immediate shortages, are driving the market higher. The prospect of reduced refinery run rates, coupled with logistical disruptions and export constraints, has reinforced a bullish outlook in the near term.
Market participants said Sinopec's continued price hikes are reinforcing domestic benchmarks and signaling confidence in the sustainability of the rally. However, the trajectory of benzene prices will remain closely tied to developments in crude oil markets and geopolitical conditions.
With supply risks mounting and downstream demand holding firm, benzene markets in Asia are expected to remain supported in the short term, though volatility is likely to persist amid ongoing uncertainty in the Middle East.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
--Reporting by Hazel Kumari, hkumari@opisnet.com; Editing by Lujia Wang, lwang@opisnet.com
(END) Dow Jones Newswires
March 30, 2026 04:54 ET (08:54 GMT)
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