China benzene market faces supply pressure in 2026 with 2.77 mln t/y of new capacity

The Chinese benzene market is expected to shift towards a looser supply-demand dynamic in 2026, driven by a significant wave of new capacity expansions. Projections indicate an annual supply surplus of approximately 790,000 tonnes, leading to inventory accumulation and sustained pressure on market fundamentals.

China's benzene market is poised for a year of ample supply in 2026, as planned capacity additions far outpace new demand from downstream derivatives. Industry analysis forecasts a substantial supply-demand imbalance, with new benzene, including hydrodealkylated (HDA) benzene, production capacity reaching 2.77 million tonnes/year, while new consumption from key downstream