Japanese Chemical Trader blog

Japan Chemical Trading Blog

Increase in Benzene Price

On June 2, JX Nippon Oil & Energy Corporation announced, “The benzene contract price for Asian countries in June was settled at USD1,290/ton, USD22 up from May”.

Benzene is one of the aromatic compounds produced from cracked gasoline derived from naphtha, and as an elemental petrochemical, is used as raw material for resins and adhesives. During the distillation process of this compound, other aromatic compounds such as xylene, toluene, etc., are also obtained.

In our article on May 28, we mentioned a paraxylene production decrease.
This cutback caused a benzene production decrease and forced a price increase in a tight supply-demand situation.

As we reported in May, when the pricing in that month was announced, the export volume to the U.S., where shale gas (from which not much Benzene is produced) usage is robustly expanding, and a decrease in Benzene production led by this also contributes to the tight supply-demand situation.