US benzene supplies fell to 95,650 b/d for the week ending January 16 from 99,420 b/d in the previous week, according to a Platts analysis of US government data released Thursday.
Refinery benzene production fell by 3,590 b/d last week to 52,140 b/d as refinery utilization dipped in the Gulf Coast and Midwest regions, US Energy Information Administration data showed. Refinery throughputs in the Gulf Coast and Midwest fell by 5.1% and 9.6% respectively in the past week, the EIA data showed.
Estimated benzene output from petrochemical sources dropped to 19,320 b/d for the week ended Friday from 19,510 b/d the week prior as Formosa’s Olefins No. 2 cracking unit in Point Comfort, Texas, suffered a process upset on January 13. The unit is expected to restart this week, according to market sources.
Meanwhile, demand for benzene fell to 122,760 b/d from 125,870 b/d a week prior as styrene producers reduced production rates on lower margins. Styrolution’s 450,000 mt/year Texas City unit was one of the styrene producers that was down on poor margins, according to market sources. However, benzene demand is expected to improve to 128,530 b/d by the end of January as a styrene arbitrage opportunity is open from the US to Asia.
The total US benzene deficit climbed to 27,110 b/d from 26,460 b/d a week prior and the deficit is expected to reach a high of 34,290 b/d in the first week of March, when refineries hit peak turnaround season and styrene demand ticks higher.
– Platts.com
