US benzene supplies climbed to 98,330 b/d for the week ending January 30, up 2.2% from 96,220 b/d a week prior, as refinery production gains outpaced a drop in petrochemical supplies, according to a Platts analysis of US government data and petrochemical output.
Benzene supplies from refineries climbed to 53,910 b/d from 52,760 b/d as refinery throughputs increased in the Midwest, according to Energy Information Administration data released Wednesday. The Midwest refinery utilization rate rebounded 7 percentage points to 95.1%, according to the EIA.
Estimated benzene supplies from petrochemical sources climbed to 20,240 b/d for the week ending January 30 from 19,280 b/d the week prior. Formosa’s Olefins No. 2 cracking unit in Point Comfort, Texas, started January 21 after a one-week shutdown due to a process upset. Formosa’s Point Comfort unit processes a mixed stream of naphtha, propane and ethane. Heavier feedstocks such as naphtha yield higher ratios of aromatics relative to lighter feedstocks.
Benzene supplies from petrochemical sources are estimated to climb to 21,560 b/d in February, when multiple units are expected to return to full production.
On-purpose benzene production from toluene disproportionation and Mobil Select toluene disproportionation were estimated as unchanged week on week at 24,180 b/d, based on information from market sources.
Demand for benzene was estimated flat from the week prior at 122,240 b/d as styrene producers continue to run their units at reduced rates amid lower margins. Styrene monomer production accounts for 48% of domestic benzene demand, according to Platts estimates. Styrolution’s 450,000 mt/year Texas City, Texas, unit was one of the styrene producers that was down on depressed margins, according to market sources.
The US benzene deficit, estimated at 23,910 b/d, is expected to climb to 35,360 b/d by March, when downstream benzene demand improves.
– Platts.com
