Aromatics
Overview
The global aromatics market is made up of several diverse product markets and can be affected by a great many factors.
Benzene is a highly traded and volatile commodity because of its predominantly co-product nature and unpredictable supply. Styrene, benzene’s largest derivative, represents about 50pc of global benzene demand. Anyone involved in the benzene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and large swings in pricing.
Meanwhile, the toluene and xylenes isomer markets are intertwined with the global markets for gasoline. Toluene and xylenes are highly traded commodities that create a lot of interest in the industry because of the various factors that affect demand growth. Outside of their inter-relationship with the gasoline markets, the major end-uses for these commodities vary across the world, from polyester fibres and food and beverage packaging to construction. Anyone involved in the toluene and xylenes industries – directly or indirectly – needs insight into how the toluene and xylenes markets can or will impact on their business, from raw material costs or as a price indicator for downstream products.
Our aromatics experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global markets.
Latest aromatics news
Browse the latest market moving news on the global aromatics services industry.
US gasoline, aromatics tighten on diesel focus
US gasoline, aromatics tighten on diesel focus
Houston, 17 September (Argus) — US oil refineries are focusing the highest run rates in 22 years on diesel production as two wars increase overseas demand, a move that has tightened domestic supplies of gasoline and aromatic blending components. Prices for aromatics blended into gasoline stand at multi-year highs, with the ethylbenzene (EB) assessment reaching levels reaching a record-high of 503¢/USG on 8 September . EB feedstock benzene and toluene and xylenes prices all reached four-year highs in September. Benzene peaked at 547¢/USG on 15 September and toluene and xylenes both peaked at 564¢/USG on 16 September, Argus data show. The rise in aromatics prices has been driven by increased blending of low-octane, light-naphtha into US gasoline supplies, as blending naphtha boosts demand for high-octane aromatic blendstocks to raise gasoline's octane rating to retail specifications. Naphtha blending demand is rising because of high gasoline prices that have increased gasoline's premium to naphtha, known as the naphtha-gasoline spread, into September, bucking seasonal trends. The spread normally narrows after peak high-octane blending demand in June ( see chart ). But the naphtha-gasoline spread widened to 157¢/USG in September, up by 22¢/USG from June, Argus data show. The unseasonably wide naphtha-gasoline spread can be traced to higher gasoline prices, rather than a particularly weak naphtha market that caused supply builds in prior years. The naphtha-gasoline spread stands above levels seen during the fall of 2022 and 2023, when falling naphtha exports boosted US supplies. Naphtha exports in 2022 and 2023 were 258,000 b/d and 281,000 b/d, respectively, while naphtha exports so far this year have averaged 402,000 b/d. Also contributing to this year's unseasonably high prices for aromatics blendstocks toluene, xylenes and EB are plant turnarounds at two aromatics producers in September and October that have tightened supplies further. The US has also received fewer aromatics imports than in the past four years because of feedstock supply issues in Asia-Pacific that have capped refinery run rates in the region. That has forced Asian petrochemical producers to prioritize supplying their regional trading partners, even with open arbitrage opportunities to the US in spite of import tariffs. Focus on diesel Aromatics demand for gasoline blending has also been supported by US refiners' decision to prioritize diesel production, tightening supplies of gasoline and blending components. With the harvest season boosting domestic diesel demand and wars in Ukraine and the Mideast Gulf creating supply constraints that have boosted export demand, the Nymex ultra-low sulfur diesel (ULSD) contract settled at a record high this week. Refiners' focus on diesel at the expense of gasoline has outweighed the seasonal shift to winter-grade gasoline, which this year was allowed to begin on 1 September, two weeks earlier than usual. The shift to winter specifications permits lower cost, higher-vapor pressure blendstocks like butane to enter the gasoline blend pool, which typically reduces demand for aromatic blendstocks. Gasoline prices also remain unseasonably high. Conventional 87-grade gasoline prices stand $1.68/USG higher than year-earlier levels and $0.97/USG higher than the five-year rolling average for the month of September, Argus data show. Meanwhile, premium 93-grade gasoline prices, which include additional high-octane blendstocks, stand $1.83/USG higher than a year earlier and $0.98/USG higher than the five-year rolling average for September. Higher gasoline prices stem from the overseas conflicts that have reduced inventories and increased global crude prices. Gasoline inventories totaled 207.7mn bl and motor gasoline blending components totaled 193.1mn bl in the week ended 11 September, down from a year earlier by 9.9mn bl and 9.6mn bl, respectively, according to US Energy Information Administration (EIA) data. Inventories of gasoline and blendstocks are poised to tighten further, pushing prices higher, as refiners prioritizing diesel production. Meanwhile, crude prices have surged since the start of the US-Iran war, with WTI Houston crude closing at $107.78/bl on 15 September and crude prices peaking this year on 6 April at $119.66/bl, Argus data show. Refinery rates at 22-year highs US refiners are running all out to capture record high margins, particularly for diesel. Refinery operating rates have averaged 97.3pc so far in September, the highest average monthly rate since June 2004 and well above the roughly 90-95pc range of recent years, EIA data show. As US refinery run rates increase, so has diesel output. ULSD production last week was up by 7.7pc from a year earlier at 5.04mn b/d, according to EIA data. In August, ULSD production rose to 5.01mn b/d, the highest output since December 2025. US diesel production has climbed since the beginning of the Mideast Gulf war to help meet European demand for fuels typically sourced from the Middle East and Russia. US Gulf coast ULSD exports to Europe climbed to 590,000 b/d in the week ended 11 September, up by 490,000 b/d from the prior week, according to Vortexa vessel-tracking data, and the highest exports to the continent in Vortexa records dating to January 2016. Record high US diesel exports have contributed to a draw down in inventories, which totaled 107.9mn bl in the week ended 11 September, down by 16.8mn bl from the year prior. US refiners in September usually build diesel stocks ahead of seasonal turnarounds, when they shift away from maximum diesel yields. If diesel inventories remain low in October, gasoline and aromatic blendstock prices could gain further support. With tight diesel and gasoline inventories and aromatic chemical prices near multi-year highs, the market has little room for disruption. Any major refinery outage or major Gulf coast storm could quickly drive fuel and aromatic petrochemical prices higher. By Jake Caldwell, Blake Del Papa and Hunter Fite Naphtha - Conventional 87 grade gasoline spread ¢/USG Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Japan’s petchem supply to last beyond fiscal year: PM
Japan’s petchem supply to last beyond fiscal year: PM
Tokyo, 3 June (Argus) — Japan can maintain supply of its petroleum products, including naphtha-derived chemical products, beyond the current fiscal year that ends in March 2027, prime minister Sanae Takaichi said on 2 June. Takaichi had already declared that Japan can secure stable oil supply beyond March 2027 , but supply of naphtha-derived products had previously been secured only through to the end of this year. Her latest statement extends that outlook. The outlook reflects the ongoing recovery in Japan's naphtha procurement, which has currently risen to around 85pc of normal levels, supported by both domestic refining and alternative imports from regions outside the Middle East. Japan has also boosted imports of intermediates, which has helped limit drawdowns of intermediate stocks in April, Takaichi said. Manufacturers of midstream products such as polyethylene, as well as downstream products — including paints and thinners, polyvinyl chloride (PVC) pipes and insulation materials — have reported that their supply performance up until April has been at the same level as or higher than in the previous year, Takaichi said, adding that they also expect to continue supply going forward. But inventories in the supply chain for paints and thinners remain relatively low. In response, in addition to petrochemical firms' supply and trading firms' imports, refiners will directly supply feedstocks such as toluene and xylene to paint and thinner manufacturers, enabling supply of up to 1.8 times the usual level of demand, according to the government. This arrangement follows domestic distribution bottlenecks for paints and thinners. Because of disruptions to shipments from the Middle East stemming from the US-Iran war, Japan's naphtha imports fell to 710,000t in April , down by 46pc from a year earlier, based on preliminary finance ministry data. Imports in May and June are expected to exceed the April level, supported by efforts to increase alternative imports from the US and other regions outside the Middle East. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Slovnaft to cover Mol aromatics after cracker explosion
Slovnaft to cover Mol aromatics after cracker explosion
London, 28 May (Argus) — Slovak refiner Slovnaft is expected to redirect toluene to meet term obligations after an explosion at parent company Mol's Tiszaujvaros petrochemical site curtailed aromatics output, a source with knowledge of the matter said. The 22 May incident, which killed one person and injured nine, damaged Mol's 380,000 t/yr Olefin-1 steam cracker and will keep it offline for several months, the company said on 27 May. The outage has cut pygas output from the cracker, a key feedstock for aromatics production. Mol produces benzene and toluene from reformate streams and cracker-derived pygas at its Szazhalombatta site, which is integrated with Tiszaujvaros for feedstock supply. The cracker outage is restricting feedstock availability and limiting aromatics output at the refinery. The disruption is expected to cut June toluene output by around 3,000 t and benzene by a similar volume, according to the source, tightening prompt availability across central Europe. Slovnaft will cover roughly 75pc of Mol's toluene contracted volumes, with the rest supplied from inventories in Hungary. Slovnaft's ability to increase supply could be limited. Its 115,000 b/d Bratislava refinery began an unplanned partial shutdown of its 220,000 t/yr ethylene unit on 25 May, according to company data distributed locally flagging flaring, odour and noise. The disruption may last through 28 May, but the company has not disclosed the cause. Lower spot availability could offer support to benzene and toluene prices in central and eastern Europe, particularly for prompt delivery. Further direction will depend on how long repairs at Tiszaujvaros take. Mol has not given a firm restart date, but added that repairs will take several months . By Yohanna Pinheiro Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Gulf war may push beverage prices up
Gulf war may push beverage prices up
Houston, 28 March (Argus) — Two of the world's largest beverage makers warn that higher costs to their operations from the war in the Mideast Gulf — including higher prices for polyethylene terephthalate (PET) bottles — may soon be passed onto consumers. Both PepsiCo and Coca-Cola in the past week warned in corporate filings that higher feedstock costs and freight rates stemming from curtailed vessel traffic through the strait of Hormuz could lead to higher prices for their customers. "Our operations … including the distribution of our products and the ingredients of other raw materials used in the production of our products, may be disrupted if such [geopolitical] events persist for a prolonged period of time," PepsiCo said in its 2025 Annual Report, released 27 March. These higher costs could be passed on to customers, reducing "volume, revenue, margins and operating results." Coca-Cola also noted similar sentiments in its 10K filings on 23 March. "Geopolitical instability has in the past led, and may in the future lead, to logistical, transportation and supply chain disruptions," the company said. Some suppliers are located in regions facing that instability, so sustained disruption to manufacturing or product sourcing "... could increase costs and interrupt product supply, which could adversely impact our business." Most bottled drinks are packaged in PET bottles. The PET resin spot price in Europe has climbed significantly since the war started, up by about 65pc since late February. During the week ended 27 March Argus assessed the price at €1,450-1,600/t delivered, up from €890-960/t delivered in late February. One US PET producer has nominated a 10¢/lb increase for March PET resin, up about 17pc from the February contract. PET producer Indorama also announced an additional 5¢/lb war surcharge to all PET resin grades effective immediately in a letter to customers. "Due to the ongoing conflict in the Middle East, there have been significant cost increases in the major and minor raw materials for PET resin, driven by a continuous increase in crude oil price and severe supply chain disruption," according to Indorama's letter. "In addition, there have also been increases in inbound and outbound freight and transportation costs." Container freight costs for PET have increased by 30pc from 27 February to 20 March, closing at $83-103/t from East Asia to the US West coast, according to Argus data. Prices for aluminum, which is also used widely for beverage containers, rose multi-year highs in the first weeks of the war, but they have since fallen due to an unclear global demand outlook and other factors. Packaging costs are generally higher than the liquids they hold for companies such as Coca-Cola and PepsiCo. But they remain a relatively small component in the final costs. Distribution and logistics costs are often higher than the manufacturing costs, which expose these companies to the higher fuel costs caused by the war. By Nicole Johnson Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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