Benzene: Tighter supply situation is more prominent

Recently, IHS Markit predicted that benzene supply in Asia is expected to tighten this year as downstream capacity continues to expand and the global drive for decarbonization causes supply constraints

Brian Lee, consultant at IHS Markit, said: "In both Asian and global markets, China is the most important market from a production and demand perspective

According to the IHS Markit chemical supply and demand database, China is the world's largest importer of benzene, with imports ranging from 2.

While demand for benzene is rising, the fall in global gasoline consumption due to the pandemic may limit benzene supply

The wave of refinery consolidation caused by the epidemic also limited the supply of benzene in North America

Uncertainty also hangs over the availability of benzene from unexpected sources at refineries

In China, the benzene output of the coal coking industry accounts for about 13%, which is higher than that of other regions

According to IHS Markit's Asia Light Olefins Monthly Report, the cash margin of cracked naphtha in Northeast Asia in October 2021 was negative, while the cash profit margin of cracked naphtha in the region at the end of December 2021 was -$161/t