Benzene Markets Tighten as Asian Petrochemical Giants Cut Capacity

South Korea's Strategic Reckoning

Ten major South Korean firms have signed an agreement to cut naphtha-cracking capacity by millions of tons. This consolidation is a survival response to years of weak margins and is expected to significantly reduce the independent supply of aromatics like benzene.

Demand Rebound and Volatility

While short-term demand remains sluggish, analysts warn of sharp price spikes once downstream buyers are forced to restock. With no significant new benzene projects outside China, the market is poised for a supply-led rebound in 2026.