Eneos Settles May Benzene ACP at Near Four-Year High — OPIS

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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 subsi...

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