The supply of raw materials will decrease, the demand for derivatives will increase, and the supply of benzene in Europe will be tightened.

Recently, IHS Markit said that benzene supply in Europe may tighten from the end of February due to the possible tightening of feedstock supplies from steam crackers and refineries

IHS Markit said that INEOS' new 750,000-ton/year cumene unit in Marr will start production this year, thereby minimizing the decline in benzene demand for cumene production

Benzene production from pyrolysis gasoline feedstocks in Western Europe in 2022 is expected to be around 160,000 tonnes less than in 2021, just over 3 million tonnes, IHS Markit estimates

Although supply is under pressure, total benzene demand will further strengthen in 2022, supported by economic recovery and global benzene derivatives capacity growth

European spot benzene prices broke records in the first half of 2021 due to planned and unplanned production failures, natural disasters, groundings of cargo ships and strong demand for downstream derivatives

According to the latest "Global Aromatics Market Weekly Report" released by IHS Markit, as of February 11, the average weekly spot price of benzene in February was US$1,058/ton

Western Europe's February benzene contract price settled at €984/ton (about $1,119/ton), down €85/ton from January