some producers in South Korea have also lowered operating rate given rising naphtha prices

In addition, some producers in South Korea have also lowered operating rate given rising naphtha prices. Naphtha import from Russia account for around 32% of total naphtha imports of South Korea. After the rate cut, benzene exports of South Korea are likely decrease. Some units in Southeast Asia may also lower output.

FOB Korea benzene prices have been around 600-700yuan/mt higher than China domestic level. China's April benzene imports are expected to decrease.

Given the output reduction in both China domestic market and Asian market, overall benzene supply has gradually decrease