By the end of October, China’s benzene market prices hit record low from 2004. Sinopec benzene ex-work prices fell by CNY 4,400/tonne or 52% month-on-month; Sinopec toluene and xylene ex-work prices also dropped by about 35-45% and 42-49% month-on-month, respectively.
Weak downstream demand and poor economic situation were the main reasons for October aromatics markets plummet.

Benzene downstream styrene monomer (SM), aniline, cyclohexanone and other industries all ran at low rates due to weak demand. Refined and hydro-coking benzene producers were at a loss, as they had to cut offers in line with the sharply falling petroleum benzene. Most mateic anhydride (MA) and 70% north China aniline factories took refined benzene as feedstock. Some SM and cyclohexanone factories took hydro-coking benzene as feedstock. However, with the falling petroleum benzene, downstream users took petroleum instead of the refined benzene or hydro-coking benzene as petroleum benzene prices were cheaper. At October end, almost all hydro-coking benzene factories and most refinery benzene factories shut down due to poor demand and deficits.

Benzene prices were much lower than toluene prices at the month end and Sinopec planned to take most toluene disproportionation (TDP) units offline. Meanwhile, most toluene downstream plants had also been shut down due to short capital chain, strict environment protection, weak demand and other macro-economy government policies.