Japan Chemical Trading Blog
Benzene price decreases widely
According to an announcement by JX Nippon Oil & Energy Corporation dated November 4, the contract price of benzene for November for Asia has been determined as USD1,095/t, down by USD105 from the month before.
Benzene is a basic petrochemical used as a raw material for resin and adhesive and is one of the aromatic compounds produced from cracked gasoline derived from naphtha.
JX is a price leader of this product in Asia.
Since shale gas hardly produces any benzene, the production of benzene is on the decline in the U.S.
JX commented as follows: “the balance is well maintained because of an increase in exports to the U.S. due to production curtailment by paraxylene manufacturers”.
However, looking at the condition of the Asian market, demand in benzene has no momentum, and recently, the price in the U.S. is also said to be decreasing.
The contract price of JX has dropped below UDS1,100 for the first time in 2 years and 4 months, since July 2012.