China's Sinopec has cut its ex-works benzene prices by Yuan 200 ($31)/mt, or more than 2%, to Yuan 8,000/mt across South China effective Monday, traders and end-users said.
The day before the state-run company reduced prices in East China by Yuan 300/mt to Yuan 7,900/mt. Sources cited weak local demand as the main reason for the price cuts.
Although most local participants returned to the market on Saturday last week after China ended its week-long National Day holidays, buying activity was thin.
Also pushing prices lower was an estimated 6,000 mt of benzene arriving in East China over early to mid-October from South Korea and 3,000 mt from Sriracha, Thailand, end October
In South China, Sinopec Guangzhou, Sinopec Maoming and Sinopec Hainan were selling benzene at Yuan 8,000/mt.
Across East China, Sinopec Shanghai, Sinopec Zhenhai Refining & Chemical, Sinopec Yangzi Petrochemical, and Sinopec Jiujiang were offering benzene at Yuan 7,900/mt.
Typically, Sinopec revises its prices after examining FOB Korea benchmark prices for benzene, domestic demand from downstream derivative producers and inventory levels at its subsidiaries across China.
On Monday morning, the FOB Korea benzene benchmark was pegged at $979.50/mt, down $50.50/mt when compared with $1,030/mt on September 30, the day before China began its long holiday.
