Japan's Eneos Corp. has set its May Asian Contract Price for benzene at $1,130 per metric ton CFR Asia, marking a fourth straight monthly increase and the highest since July 2022, according to people familiar with the matter.
The settlement, up about 3% month on month, reflects persistent supply anxiety across the region as the prolonged disruption around the Strait of Hormuz continues to constrain flows of crude and naphtha, key feedstocks for aromatics production. With naphtha availability squeezed, crackers across Asia have been forced to trim operating rates, curbing benzene output and tightening spot availability.
"Feedstock remains the core issue," a South Korea-based trader said. "Even if downstream demand is not exceptionally strong, supply limitations are enough to keep prices elevated."
Spot benzene values have surged since the onset of the Middle East conflict, underscoring the severity of the supply shock. The OPIS benchmark averaged $768/mt FOB Korea in February before jumping 36% to $1,047/mt in March. Gains extended into April, rising a further 9% to $1,139/mt FOB Korea, as buyers scrambled to secure prompt cargoes amid widespread production disruptions.
Large-scale petrochemical complexes in Southeast and Northeast Asia have either reduced operating rates, shut units or declared force majeure in recent weeks due to feedstock shortages. The resulting supply gap has triggered a wave of restocking, particularly from buyers seeking to hedge against further disruptions.
However, early signs of stabilization are beginning to emerge.
South Korean producers have started to gradually lift operating rates after securing alternative naphtha supplies through emergency procurement channels, easing immediate concerns over a prolonged supply crunch. The shift has introduced a degree of caution into an otherwise bullish market narrative.
Among the most notable adjustments, Lotte Chemical has raised the operating rate at its Daesan naphtha cracking center to around 83%, up from 73% previously, according to industry sources. The increase follows similar moves by Yeochun NCC, which lifted run rates from about 60% to 65%, and Korea Petrochemical Ind. Co., which raised utilization from roughly 62% to 72%.
These adjustments come as part of broader efforts to stabilize domestic petrochemical supply chains, supported by government intervention. Seoul has introduced subsidies covering up to 50% of the increase in naphtha import costs, encouraging producers to resume higher operating rates despite elevated feedstock prices.
Despite the gradual recovery in cracker utilization, the market remains finely balanced. On one hand, improving run rates in South Korea could boost regional benzene output and temper the rally. On the other hand, ongoing geopolitical risks and logistical uncertainties continue to cloud feedstock availability, limiting the pace of recovery.
For now, the benzene market appears caught between structural tightness and tentative signs of recovery. While Eneos' latest ACP underscores the strength of current pricing fundamentals, market participants are increasingly watching whether higher operating rates across Northeast Asia will translate into additional spot liquidity.
"Supply is improving, but it's not back to normal," the South Korea-based trader added. "Until feedstock flows stabilize, the market will remain vulnerable to further spikes."
In the last three months, Eneos' nominations and settlements were:
April:
Nomination: $1,120/mt CFR Asia
Settlement: $1,100/mt CFR Asia
March:
Nomination: $820/mt CFR Asia
Settlement: $795/mt CFR Asia
February:
Nomination: $800/mt CFR Asia
Settlement: $780/mt CFR Asia
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
--Reporting by Hazel Kumari, hkumari@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com
(END) Dow Jones Newswires
May 04, 2026 01:19 ET (05:19 GMT)
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