Benzene
+ BZ spread improved following increase in the US price on active buying interest in order to cover production issue and from lost TDP and STDP supply.
+ Arbitrage window from Asia to the US has been opened for the first time since Oct with the US netback stronger than China.
+ STDP margin has been negative since early May and all units in North America reduced their production rate (to around 50 percent) or shut down.
+ Asian BZ supply will decline as Panjin Ethylene has started a naphtha cracker turnaround while Jilin has also carried out a one-month refinery and
naphtha cracker turnaround. Moreover, Qingdao Refinery has taken a two-month refinery turnaround from the beginning of Jun.
+ In China, BZ production from TA has been reduced in order to send TL to the gasoline pool.
- Producer in Kashima, Japan has shut down a Phenol plant around three weeks from early Jun for planned maintenance. Another Phenol producer in
Osaka will undergo scheduled maintenance during all of Jul.