Asian pure benzene price drop device faces suspension of production

According to recent reports from international media, leading pure benzene producers in Asia have issued warnings that if the current weak pricing trend continues, several production facilities may either halt operations or cut back on output. Industry insiders highlighted that units relying on toluene as a feedstock are particularly at risk due to the sharp decline in benzene prices. Since early March, the drop in pure benzene prices has been driven by oversupply and weak demand in the U.S., which has led to negative margins for plants using toluene-based processes like Toluene Disproportionation (TDP) and Hydrodealkylation (HDA). Over the past few weeks, the price of toluene FOB in South Korea has remained about $20–$25 per ton higher than that of pure benzene, far below the $50-per-ton spread needed to make HDA units profitable. Similarly, the difference between TDP and toluene is only $20–$30 per ton, making these processes economically unviable. As a result, some partial-toluene-based benzene plants may need to reduce their operating rates or even suspend production. Given the current market conditions, it's clear that many TDP/HDA units will likely scale back or stop production. A Japanese manufacturer mentioned that while no final decision has been made, full capacity utilization is unlikely. South Korean company GSCaltex is also reviewing the operational rate of its Yeochun TDP plant, which normally produces 60,000 tons of pure benzene annually. The company warned that if prices remain low, it might consider shutting down the facility or reducing output. Other firms, including S-Oil and Kumho Chemicals, are also assessing similar cost-cutting measures to cope with the challenging environment.

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