Benzene Imports Continued to Drop in May

Benzene Imports Continued to Drop in May

Benzene imports fell further in May. GACC data shows May imports at 405.6kt, down 9.49% MoM but up 53.49% YoY. Some Korean units resumed operations in MAY, but export availability remained limited. With no near-term Asia-US arbitrage window opening after June, China’s benzene imports may rebound.

According to GACC, the cumulative imports from January to May reached 2,376kt, surging 62.60% YoY to a record high.

Cargoes from South Korea dropped by 12.36% in May.

April and May were peak refinery maintenance season. As China’s top benzene supplier, Korea shipped approximately 220kt in May, down 12.36% MoM. Local unit outages caused output loss, reducing export volume. However, some idled units gradually restarted after May. Brunei ranked second with 47.4kt imports, down 12.47% MoM. Japan placed third with 29.9kt, down about 44% MoM.

East China remained the primary benzene import hub in May.

East China remained the primary benzene import hub in May. Shanghai led with 163kt imports, up 26.63% YoY. Zhejiang dropped to second place at 131.2kt, down 26.55% MoM. Shandong’s imports fell by 23.03% MoM to 29.1kt after Wanhua Chemical Group’s unit startup.

East China port inventory fluctuated at low levels in early-mid May but began climbing from late May. Current stocks may exceed 170kt, up over 40kt from May’s low. With higher June arrivals projected, port inventory could rise further.

June benzene imports may rebound.

Asia-US benzene arbitrage windows remained shut in June. However, restarted Japanese and Korean units increased export availability, potentially boosting shipments to China. China’s June benzene imports may rebound noticeably from May.

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