What drove the extreme benzene price surge and record-low inventories in August?

Benzene prices spiked as Jiangsu port inventories collapsed to 29,000 tons on August 17—less than one-fifth of normal levels and down from 144,000 tons a year earlier. Three forces converged: concentrated plant maintenance cut operating rates to 63.3%, still historically low; Hormuz shipping disruptions halted Middle East imports, leaving East China ports with almost no arrivals; and exports to Korea rose as its crackers cut runs on poor margins. With no exchange deliverable stocks, near-month shorts faced a physical squeeze. Downstream styrene units also reduced loads due to low profits, but benzene's absolute scarcity dominated pricing. The market remains vulnerable until imports resume and domestic rates recover above 70%.