China's 2026 Annual Hot Topics and Key Events in the Pure Benzene Industry

【Introduction】 In 2026, driven by a series of dramatic shifts in market sentiment, costs, supply, and demand triggered by geopolitical tensions in the Middle East, China’s pure benzene market prices hit multiple historical extremes.

1. Geopolitical conflicts in the Middle East drove domestic pure benzene price fluctuations to record highs and lows since data tracking began.

On March 6, the closure of the Strait of Hormuz disrupted exports from Middle Eastern oil-producing nations, intensifying market concerns over potential supply interruptions. International crude oil prices surged by more than 10% at close. Consequently, domestic refineries aggressively pushed up prices. After a weekend of anticipation on March 7–8, when trading resumed on March 9, the posted price for pure benzene rose sharply by as much as 2,700 yuan/ton in a single adjustment. However, immediately following this steep increase, crude oil prices fell significantly the same day. Demand remained cautious with no follow-through purchases, making transactions at these elevated levels difficult. As a result, just one day later, the posted price for pure benzene was cut by 3,000 yuan/ton in a single move. Over two consecutive days, both the upward and downward price swings set historical records. Amidst this historic volatility, high-priced transactions of 11,000 yuan/ton were executed in both the East China and Shandong markets.

2. Disruption of shipping through the Strait of Hormuz led to tight crude oil supplies and refinery production cuts, resulting in a historic decline in pure benzene output.

In early March, escalating geopolitical conflicts in the Middle East hindered navigation through the Strait of Hormuz, causing raw material shortages for Asian refining and cracking units. Coastal refineries in southern China were notably impacted, with some forced to maintain minimum operating loads for extended periods. The duration of the disruption exceeded market expectations, further amplifying raw material supply pressures. Many enterprises opted to conduct scheduled maintenance earlier than planned or even shut down units entirely to mitigate the risk of supply disruptions. Throughout the year, the slow recovery of traffic through the Strait of Hormuz resulted in persistent shortfalls in external transport volumes. Consequently, some domestic enterprises found themselves unable to secure sufficient raw materials even after their planned maintenance periods ended, forcing them to extend shutdowns and delay restarts.

Due to these refinery shutdowns and production cuts, total annual pure benzene output in 2026 declined year-on-year—a first since 2005.

3. Persistently low port inventories in Jiangsu province helped push pure benzene prices to their highest levels since data tracking began.

The impact of production cuts by pure benzene manufacturers both domestically and internationally became evident in August, leading to a tight supply situation. As a key indicator of domestic supply-demand dynamics, commercial inventory levels at Jiangsu ports fell below the critical threshold of 50,000 tons in August and remained at historically low levels until November. During this period, both the absolute inventory levels and the duration of stocks remaining below the critical threshold continuously broke historical records.

Affected by the prolonged scarcity of deliverable spot goods at ports, short-squeeze phenomena prevailed in the East China spot market during the third and fourth quarters of 2026. By late September, the daily price of pure benzene at storage facilities briefly spiked to 11,325 yuan/ton, marking the highest level recorded since 2005.