Sinopec lowered its domestic benzene list price by 300 yuan per metric ton ($44/mt) to 8,700 yuan/mt ex-warehouse, equivalent to about $1,104/mt CFR China on an import-parity basis, snapping a three-session run of increases as upstream energy and regional benzene markets retreated, according to industry sources.
The decline followed a sharp correction across feedstock markets after U.S. President Donald Trump announced a two-week cease-fire in the conflict with Iran, alongside the reopening of the Strait of Hormuz during the truce period. The development soothed global energy markets, triggering steep losses in crude and naphtha values and pulling petrochemical prices lower.
In China, the midpoint of the OPIS domestic benzene assessment dropped 8.4% day on day on Wednesday to 8,305 yuan/mt ex-tank, reflecting heavy declines in both regional benzene markets and upstream energy sectors. Naphtha prices led the downturn, with the midpoint of the CFR Japan assessment falling more than 10% from $1,161.50/mt to $1,002.50/mt.
The easing of geopolitical tensions briefly alleviated fears of prolonged disruptions to feedstock flows from the Middle East, which had previously driven benzene prices to multi-month highs. However, market participants remain cautious about the durability of the cease-fire and the practical resumption of shipping through the Strait of Hormuz.
Traders said vessel operators are still assessing security conditions and insurance coverage before resuming transit, limiting immediate relief to supply chains. "Even if the Strait is technically open, no one wants to be the first to take the risk," a China-based trader said, pointing to uncertainty over war-risk premiums, toll fees and insurer approvals.
The fragile geopolitical backdrop has kept volatility elevated. Tensions resurfaced after Israel launched its largest assault on Lebanon since the start of its invasion, targeting more than 100 Hezbollah command centers and military sites within minutes, including areas in central Beirut. The escalation has raised concerns that the broader ceasefire between the U.S. and Iran could unravel.
Iran has warned it could withdraw from the agreement if hostilities intensify, with officials signaling that the Strait of Hormuz could again be closed, a move that would threaten global energy supply and reignite bullish pressure across petrochemical markets.
Despite the recent pullback, traders said underlying supply concerns remain unresolved. "Benzene will continue to be volatile," added the China-based trader. "Supply in May is still considered tight due to reduced cracker operating rates, while June remains highly uncertain and depends on how long the Strait situation lasts and how quickly Middle Eastern plants can recover."
The cautious outlook was reflected in spot activity. While prices tanked on Wednesday, crude rebounded on Thursday amid renewed geopolitical concerns, lifting benzene bids for June-loading cargoes from $1,067/mt FOB Korea on Wednesday to $1,100/mt FOB Korea in the morning session.
Market participants said the push-and-pull between easing tensions and recurring flare-ups is likely to keep benzene markets highly reactive in the near term. While Sinopec's latest price cut signals a temporary correction, the broader trend will depend on the stability of energy markets, the resumption of Middle Eastern exports and the pace of recovery in regional production.
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 Mei-Hwen Wong, mwong@opisnet.com
(END) Dow Jones Newswires
April 09, 2026 03:31 ET (07:31 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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