Pure Benzene: Import Dependence Hard to Change in the Near Future


By Zhang Yue, PetroChina Jilin Petrochemical Co., Ltd. Research Institute

China’s capacity to make petroleum benzene reached 11.327 million t/a last year. Output was 8.25 million tons and the average operating rate was 72.8%. Table 1 shows the supply/demand balance of pure benzene in China during 2012-2016. The import volume increased somewhat.

Table 1    Pure benzene supply/demand in China, 2012-2016  (kt)

    2012    2013    2014    2015    2016
Capacity (kt/a)    9 437    9 900    10 880    11 170    11 327
Operating rate (%)    70.0    72.0    68.2    69.8    72.8
Output    6 626    7 128    7 419    7 800    8 250
Import volume    439    887    601    1 206    1 549
Output of hydrogenated benzene    2 800    3 300    3 450    3 340    3 200
Total supply    9 865    11 315    11 470    12 346    12 999
Domestic demand    9 830    11 300    11 350    11 810    12 539
Export volume    49    31    74    93    53
Total demand    9 879    11 331    11 424    11 903    12 592
Balance    -14    -17    -46    -443    -407



Sectors consuming pure benzene are expected to enjoy further expansion in the next five years, so with the increase of domestic pure benzene output being limited, import will likely increase. Table 2 shows the major producers of petroleum benzene in China in 2016.
The pure benzene market in China developed steadily in 2016, and prices went up constantly. As the consumption pattern saw no big changes, operating rates in sectors downstream were relatively high, and consumption was higher than in previous years. The manufacture of styrene remained as the most important consuming sector. Manufacture of caprolactam and phenol followed close behind. Figure 1 shows the consumption structure of pure benzene in 2016.
Table 3 shows the major sources of China’s imported pure benzene in 2016. Korea was the most important. Japan and Thailand came next. The amounts imported from other countries were quite small.

Table 2    Major producers of petroleum benzene in China, 2016

Producer    Capacity (kt/a)
Sinopec Shanghai Petrochemical Co., Ltd.    501
Sinopec Tianjin Petrochemical Co., Ltd.    482
Sinopec Zhenhai Refining & Chemical Co., Ltd.    450
Sinopec Yangzi Petrochemical Co., Ltd.    446
Sinopec Qilu Petrochemical Co., Ltd.    363
Sinopec Guangxi Qingzhou Petrochemical Co., Ltd.    200
Sinopec Yanshan Petrochemical Co., Ltd.    195
Sinopec Jinling Petrochemical Co., Ltd.    195
Sinopec Maoming Petrochemical Co., Ltd.    190
Sinopec Wuhan Petrochemical Co., Ltd.    180
Sinopec Luoyang Petrochemical Co., Ltd.    97
Sinopec Qingdao Petrochemical Co., Ltd.    80
Sinopec Guangzhou Petrochemical Co., Ltd.    72
Sinopec Hainan Refining & Chemical Co., Ltd.    60
Sinopec Zhanjiang Petrochemical Co., Ltd.     55
Sinopec Zhongyuan Petrochemical Co., Ltd.    52
Sinopec Anqing Petrochemical Co., Ltd.    40
Sinopec Changling Petrochemical Co., Ltd.    32
Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd.    25
Sinopec Shijiazhuang Refining & Chemical Co., Ltd.    9
PetroChina Urumqi Petrochemical Co., Ltd.    700
PetroChina Liaoyang Petrochemical Co., Ltd.    424
PetroChina Sichuan Petrochemical Co., Ltd. Ethylene Plant    400
PetroChina Dushanzi Petrochemical Co., Ltd.    320
PetroChina Jilin Petrochemical Co., Ltd.     310
PetroChina Dalian Petrochemical Co., Ltd.    242
PetroChina Fushun Petrochemical Co., Ltd.    237
PetroChina Daqing Petrochemical Co., Ltd.    222
PetroChina Lanzhou Petrochemical Co., Ltd.    168
PetroChina Huabei Petrochemical Co., Ltd.     60
PetroChina Jinxi Petrochemical Co., Ltd.    36
PetroChina Jinzhou Petrochemical Co., Ltd.    15
Qingdao Lidong Chemical Co., Ltd.    390
CNOOC Huizhou Petrochemical Co., Ltd.    350
CNOOC-Shell Petrochemical Co., Ltd.    240
Hainan Refining & Chemical Co., Ltd.    220
Shanghai SECCO Petrochemical Co., Ltd.    215
Dalian Fujia Dahua Petrochemical Co., Ltd.    200
Shanxi Sanwei Group Co., Ltd.    200
BASF-YPC Co., Ltd.    185
Panjin Petrochemical Co., Ltd.     80
Others    2 389
Total    11 327



This year, pure benzene sold in China at RMB7 125/t in the beginning and sold for RMB6 250/t at the end of March – a reduction of 12.28%. Prices peaked in early February at RMB9 000/t. The market floated in the range of RMB6 000-7 000/t during April-May. Figure 2 shows the price trend of pure benzene in China during January-May 2017.
In the second half of 2017, the domestic pure benzene market is hoped that with the approach of the brisk demand season prices will increase overall.              


Table 3    Major sources of China’s imported pure benzene, 2016

Source    Import volume (kt)    Import value (US$ million)
Korea    711    461.1
Japan    440    279.6
Thailand    228    145.8
Malaysia    73    47.5
Oman    33    20.6
Singapore    32    21.4
India    14    9.6