US Gulf Coast Benzene Price Volatility Hinders Derivative Exports
U.S. benzene prices have surged since the war with Iran began in March and the latest monthly contract settlement showed not just increases related to energy futures, but also a lack of liquidity.
The U.S. Gulf Coast August benzene contract price settled on Aug. 4 at 457-460cts/gal ($1,367.80-1,376.78/mt), with a midpoint of 458.5cts/gal ($1,372.29/mt), according to data from PCW by OPIS, a Dow Jones company. The August contract settlement was 94.5cts/gal higher than July 2026 settlement of 364cts/gal.
Despite the jump in price, this was not the highest contract this year. That distinction remains with the April contract price, which settled at 491cts/gal. Compared to one year ago, the August 2025 contract settled at 289cts/gal.
A portion of the price hikes may be related to stronger crude oil and gasoline prices. Gasoline prices have risen four out of the last seven months, spiking 21.2% in March after the war with Iran started, according to OPIS data. But benzene spot prices really took off in April as a combination of shortened supplies and demand for prompt material rose.
A total of 877,000 bbl traded during the August contract window, which ran from July 16-29. Nearly half of the reported volume, 49%, was for first-half August delivery.
Imports vs. Exports
The U.S. is a net importer of benzene and as securing vessels for imports becomes increasingly difficult given the Middle Eastern conflict, participants cannot rely on steady flows. Additionally, tariffs remain and make imports less appealing.
However, the U.S. is a net exporter of benzene derivatives. The lack of benzene has caused limitations to exporting derivatives such as styrene. Although some derivative markets have the ability to apply for a duty drawback or refund, this has not been utilized widely yet.
“Benzene imports have dropped 73% year-to-date compared to the same period in 2024 before the tariffs,” said Peter Feng, vice president of aromatics at Chemical Market Analytics by OPIS. “The lack of benzene imports and the large price differential between the U.S. and Asia have made exports of benzene derivatives, such as styrene, uncompetitive in the export market.”
Furthermore, ethylbenzene, which is the single largest industrial consumer of benzene, is typically produced as an intermediate to make styrene monomer, ultimately serving the plastics market. But when market economics favor ethylbenzene to be added to the gasoline pool to boost octane levels, material that could be used for chemical supply can be diverted. This usually occurs during the summer when the lower Reid vapor pressure blendstocks are needed.
“Ethylbenzene is really drying up benzene liquidity,” one market participant said, adding that this was another reason why August pricing has jumped, particularly for prompt barrels.
The spot market for September has seen some declines but remains well above the $4/gal marker. The last deal for September movement was done on Wednesday at 441cts/gal DDP HTC. The last August spot deal was done on Tuesday at 442cts/gal DDP HTC and again at 450cts/gal DDP HTC, according to the Aug. 12 PCW Daily North Americas Aromatics Report.
The September contract trading window opens on Aug. 14.
Reporting by Anna Matherne Maldonado, amatherne@opisnet.com and Marlon Vineuza, mvinueza@opisnet.com; Editing by Brett Ratchford, bratchford@opisnet.com