Maintenance shutdowns trigger demand to outstrip US benzene supply

26-Sep-14

US benzene demand in the week ended Friday exceeded supply by 9,480 bpd as several petrochemical plants remained offline for maintenance, as per Platts. The previous week saw demand outpace supply by 9,200 bpd. Benzene supply in USA fell to 98,420 bpd in the week ended Friday, down from 98,680 bpd in the previous week, according to US Energy Information Administration data. ExxonMobil began planned maintenance at its Baytown, Texas, ethylene cracker on September 9. In addition, Chevron Phillips' Port Arthur, Texas, and Williams' Geismar, Louisiana, ethylene crackers remain down for maintenance work. Downstream benzene demand remained flat at 107,900 bpd. Benzene demand for styrene production remained 14% below peak levels in July due to reduced run rates and idling of Westlake's Lake Charles, Louisiana, unit until Q4, as per market sources. Benzene demand is expected to fall to 99,520 bpd in October as Styrolution's Bayport, Texas, styrene unit will shut for planned maintenance later this month. But demand is estimated to rise to 122,630 bpd in November, when both styrene units are expected to come back online, market sources said. The supply shortfall is expected to fall to 2,970 bpd in October when styrene units are shut before rising to 22,830 bpd toward the end the year as the units return to operation based on a Platts analysis.