Galaxy Futures: Refinery capacity reductions impact pure benzene supply, benzene imports decrease year-on-year

Due to concerns about stable upstream raw material supply, some domestic refineries have implemented precautionary rate-reduction measures. The disruption to trade logistics is impacting Asian refineries’ supply of key raw material naphtha, and refineries in South Korea and Japan have reduced operating rates across the board. Gulei Petrochemical has been shut down for maintenance starting March 9, and Zhenhai Petrochemical’s 3.8 million-tonne aromatics reforming unit has undergone maintenance. Imports of pure benzene are down year over year compared with last year; in 2026, January and February pure benzene import volumes were 3.989 and 4.152 million tonnes, respectively, down approximately 15.1% and 19.8% year over year. With disruptions in the Strait of Hormuz, the availability of Middle East styrene supplies entering and exiting Europe and Asia will be constrained; Iran’s styrene unit is temporarily shut down, which will drive China’s styrene export market outlook. According to customs data, in 2026 styrene exports in January and February were 0.606 and 0.541 million tonnes, respectively, representing year-on-year growth. Downstream EPS has recently seen an expansion in profits, with plant utilization at a neutral level; buyers show insufficient acceptance of high prices. For PS and ABS, operating rates remain at low levels and inventory drawdown pressure is relatively high. As the styrene downstream enters a peak season, load is expected to rebound. (Galaxy Futures)