SINGAPORE, June 7 – Asian benzene demand may improve in July-August as downstream plants resume production after maintenance shutdowns. Meanwhile, Asian benzene supply will decrease due to planned shutdowns of two production units in the region.

　　High benzene inventories in key China and other Asian markets will take time to deplete, depending on the strength of overall Asian demand in the third quarter.

　　High operating rates at Asian benzene production units have led to increased benzene inventories in the region during the first half of this year, amid maintenance shutdowns at downstream styrene monomer (SM), phenol, and methylene diphenyl diisocyanate (MDI) plants.

　　In May this year, benzene inventories in the Chinese market increased to over 230,000 tons from approximately 150,000 tons in December 2017.

　　“Most downstream plant maintenance shutdowns will be completed in May and June, so benzene consumption is likely to increase from the third quarter,” said a Singapore-based trader.