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.
Viewpoint: US methanol to further displace Trinidad
Viewpoint: US methanol to further displace Trinidad
Houston, 31 December (Argus) — US methanol producers are expected to further expand global market share while simultaneously eroding Trinidad and Tobago's share as the island nation contends with unreliable feedstock availability. Trinidad and Tobago's mature natural gas fields are in significant decline, and natural gas availability has incrementally shrunk during the last 15 years, according to the Caribbean country's National Gas Company (NGC). Natural gas is a critical feedstock for methanol production, and the decline in natural gas output from the twin island nation has cut methanol capacity since 2009. US methanol production capacity concurrently expanded with the decline in Trinidad output, and major producers continue to invest in US assets to further expand market share — a trend expected to continue in 2026. Trinidad and Tobago is a major supplier to US east coast distributors and is anticipated to lose market share to US producers. East coast importers and distributors from January-September took in 221,079 metric tonnes (t) of methanol from Trinidad and Tobago, marking a 20pc decrease from average shipments during the same nine-month period from 2021-24, according to government data collected by Global Trade Tracker (GTT). Lower imports from Trinidad and Tobago raised the cost of transportation by trucks and railcars on the US east coast and widened the differential to the US Gulf coast. The average price premium east coast truck and railcars commanded over the US Gulf coast has jumped fourfold since 2021, and that widening spread could incentivize domestic suppliers to further displace methanol imports with domestic production. Additionally, the US could also expand its methanol presence in Europe. US methanol exports to Europe stood at 1.7mn t during the first nine months of this year, up by 39pc over the same period of last year and 200pc higher than in 2021. Meanwhile, exports from Trinidad and Tobago to Europe fell by 41pc to 1mn t from January-September 2025, according to GTT. Trinidad's natural gas future Operators in Trinidad and Tobago are investing in upstream projects to increase natural gas production, but these efforts will likely only offer a slight boost and short-term feedstock stability. One project headed by UK-based BP will deliver about 250mn cf/d to midstream and downstream consumers in Trinidad. Natural gas flows will start in April 2026, the company said earlier this year. Despite this project, and others under development, natural gas supply will remain tight through 2027, sources said, keeping methanol operations curtailed during the next two years. Long-term growth depends on cross-border natural gas development with Venezuela, which has large reserves but faces geopolitical tension with the US. While Trinidad's natural gas production is not expected to run dry soon, more is going to higher priced molecules, such as liquefied natural gas (LNG) or ammonia, instead of methanol — a trend that has defined the shifting supply balance from Trinidad during the last 15 years. Natural gas production peaked at 4.3 Bcf/d in 2010, but fell to around 2.5 Bcf/d in 2025, according to NGC. Feedstock natural gas deliveries to Trinidad's methanol assets fell simultaneously with sliding output, with January-to-June deliveries this year down by 11pc to 452mn cf/d compared to the January-June period last year, NGC data showed. These cuts and the sporadic nature of the islands' natural gas supplies have slashed Trinidad's 8mn t/yr methanol capacity to an estimated 4mn-5mn t/yr of production, just over half of total operational rates. By Steven McGinn Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Viewpoint: BZ demand to see little change in 2026
Viewpoint: BZ demand to see little change in 2026
Houston, 22 December (Argus) — US benzene (BZ) demand is expected to remain steady in the first quarter of 2026 because of low operating rates for BZ derivatives, sources said. Operating rates for BZ derivatives were low in 2025 because of weak demand and a busy turnaround season, with several styrene monomer (SM), cumene and phenol producers conducting turnarounds. At least one US Gulf coast styrene producer is expected to perform a turnaround in the first quarter that is estimated to run 20-30 days, another source said. Ethylbenzene (EB) demand into gasoline blending may finally see its seasonal lull, as high-octane, low-Reid vapor pressure (RVP) blendstocks are typically in low demand from October-March, when US gasoline specifications allow high-RVP blendstocks like butane to enter the blend pool. In late 2025, EB demand remained steady into gasoline blending because of strong demand for high-octane aromatic blendstocks to offset low-octane light naphtha, which was blended into the gasoline pool to keep up with the demand for US gasoline exports. But, with expensive feedstock BZ heading into 2026, EBSM producers cannot sell EB above breakeven levels, which caused EBSM producers to reduce operating rates, sources said. When spot BZ reaches a premium to feedstock reformate prices, EB becomes a less competitive blendstock because of its production cost ( see chart ). This disposition of ethylbenzene's value as a blendstock opens competition for other aromatic blendstocks like toluene and mixed xylenes to enter the gasoline pool. North American EBSM operating rates are expected to remain at 48-60pc in early 2026, according to a generic Argus model with operating rates informed by market participants. SM export demand is anticipated to remain limited. The arbitrage to Europe is closed for December-loading cargoes to arrive in January, Argus data show. Buying interest could emerge from Latin America, which typically takes 20,000-25,000 metric tonnes (t) of SM from North America every two or three months, depending on polystyrene (PS) production rates. Cumene demand is expected to remain flat in 2026 on steady, though sluggish, downstream demand for phenol and acetone, which have big shares in the construction, automobile, appliances and resin industries. A source said sellers are taking customers' spending and borrowing power into deeper consideration when exploring spot and new contract opportunities to mitigate selling risk. Phenol is anticipated to see little fundamental change in 2026, sources said. There are few expected phenol turnarounds for maintenance in the first half of the year, and sources expect consumption to remain comparable to 2025. New housing permits declined in 2025 compared to 2024, according to US Census Bureau data, which led to fewer homes being built and less phenol demand. About half of all phenol produced in the US goes into the construction sector. Phenol and cyclohexane demand from the automotive industry may decline in 2026 on lower automobile manufacturing leading into the new year. Domestic automobile production trailed lower throughout 2025 as many producers were operating below full output rates. In August, US automobile production dipped below 100,000 units for the first time since January, according to the US Bureau of Economic Analysis (BEA). Before January, monthly domestic automobile production last dipped below 100,000 units in September 2021. The automotive industry makes up nearly 22pc of phenol consumption. Benzene supply is expected to remain low in 2026 on reduced US production and fewer imports because of US tariff policies that add costs for traders. On production, some market participants expect selective toluene disproportionation (STDP) unit operating rates to remain low in 2026 because BZ prices rose in late 2025 on tight supply, not strong demand, sources said. Though STDP margins look healthy on paper moving into 2026, if STDP operators raise production rates, the higher BZ supply would depress prices and margins to the point where STDP operators decide to turn run rates down again or idle their units, another source said. The US is historically in a net BZ deficit and usually relies on BZ imports to add supply when BZ production lags demand. With US tariff policies adding costs to those imports, shipments of BZ from Europe and Asia have largely declined. Market participants said they expect this trend to continue in 2026 without changes to US tariff policy. By Jake Caldwell Ethylbenzene economics vs Benzene and Reformate $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
EU conditionally clears Adnoc-Covestro deal under FSR
EU conditionally clears Adnoc-Covestro deal under FSR
London, 14 November (Argus) — The European Commission has given conditional approval to plans by Abu Dhabi's state-owned Adnoc to acquire German chemicals group Covestro under the EU's foreign subsidies regulation (FSR). Adnoc, to address the commission's competition concerns relating to state subsidies, offered to adapt its articles of association to make sure they align with UAE insolvency law, thereby removing unlimited guarantee from the state. It will also share Covestro's sustainability patents with certain market participants. "Clear, predefined access to these patents will enable others to innovate and advance research in an area that is critical for Europe's future," commission executive vice president Teresa Ribera said. The commission said these commitments "will balance out the negative effects" of the €12bn ($13.9bn) Adnoc-Covestro deal in the EU market. During an in-depth investigation, the commission found that "Adnoc and Covestro received foreign subsidies from the UAE that are liable to distort the EU internal market." These subsidies include an unlimited state guarantee to Adnoc, as well as a committed capital increase from Adnoc into Covestro. "As a result, the merged entity could have engaged in more aggressive investment strategies than absent the subsidies, to the detriment of other market participants and competitive conditions in the internal market," the commission said. The commission gave the green light to the acquisition in May, but decided to launch an in-depth probe in July under the FSR because of competition concerns relating to state subsidies. The FSR began in July 2023 and allows the commission to address distortion caused by foreign subsidies as a way of ensuring a laying playing field for all companies in the EU market. By Monicca Egoy Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Ineos plans to make further anti-dumping claims to EU
Ineos plans to make further anti-dumping claims to EU
London, 11 November (Argus) — UK-based petrochemical company Ineos plans to file five new anti-dumping duty (ADD) claims to the EU by the end of 2025, aiming to counter "low-cost, high-carbon imports". Ineos told Argus the five are in addition to three ongoing ADD investigations in which Ineos has since November 2024 been involved in filing complaints, and to two existing ADDs in which Ineos is contributing to seeking an extension or change ( see table ). The company gave no further details on countries or, in some cases, specific products in the ADD claims it is preparing. But it said it is also supporting customers with "a growing number of anti-dumping filings" on chemicals that affect Ineos' downstream value chains, such as polyethylene terephthalate (PET). Imports from the US, Middle East and Asia-Pacific are putting pressure on European chemicals manufacturing, which has high operating costs relative to other regions, Ineos said. It cited data from European Chemical Trade association Cefic showing imports of chemicals from China rose by 8.3pc in the first half of 2025. Ineos singled out the latest EU-US trade deal — a probable reference to the European Commission's proposal to reduce import duties on many chemical products to zero — saying it "gives away what little protection [Europe] had left" against imports from the US. It also said the commission was not acting quickly or decisively enough. It said the EU's provisional duties on on acrylonitrile butadiene styrene (ABS) imports from Taiwan and South Korea was "far too low", and these are failing to prevent imports into the EU. Most recent Global Trade Tracker (GTT) data for July and August show limited effect, with July imports up by 13pc on the year and August imports down by 4pc. Ineos Styrolution has three ABS plants in Europe: one in Antwerp, Belgium, and two in Germany at Cologne and Ludwigshafen. The three have combined capacity of 490,000 t/yr. For monoethylene glycol (MEG), Ineos' call relates to a sunset review of ADDs on imports from the US and Saudi Arabia that are due for expiry or renewal in November 2026. For PVC Ineos is seeking an extension or change to ADDs initiated on imports from Egypt and the US in 2024. The new claims that Ineos is preparing cover products including polyolefins, caustic soda, acrylonitrile-styrene-acrylate (ASA) acetic acid, butyl acetate and polyethylene glycols. Petrochemical industry bodies have called for more support, and the commission proposed a package of measures in July aiming to address high energy costs, global competition and weak demand. This included a pledge to apply trade defence measures more quickly and expand chemical import monitoring under an existing surveillance task force as part of a support package for the chemicals sector. Ineos has been an active voice asking for measures to support the industry, including an October call for cuts to taxes and levies on industrial energy in Europe to avert further plant closures. Citing a commissioned study by Oxford Economics, Ineos said carbon border measures and targeted tariffs can protect European producers from non-European producers that benefit from cheaper or less-regulated energy costs. By Will Collins, George Barsted, Alex Sands, Sebastian Du Plessis ADD claims that Ineos is involved with or preparing Product Current status Cases in preparation to be filed Polyolefins N/A Caustic soda N/A Acrylonitrile styrene acrylate (ASA) N/A Acetic acid/acetic anhydride/ethyl acetate N/A Polyethylene glycol/butyl acetate N/A Current investigation Acrylonitrile-butadiene-styrene (ABS) Complaint made in November 2024, provisional duties announced in July 2025 Polyterephthalic acid (PTA Investigation opened in August 2025 on imports from South Korea and Mexico 1,4 butanediol (BDO) Investigation opened in June 2025 on imports from Saudi Arabia, US, China Change/extension to existing ADD Polyvinyl chloride (PVC) Seeking extension/change to ADDs imposed on Egypt/US imports in 2024 Monoethytlene glycol (MEG) Seeking renewal of ADDs imposed on imports from Saudi Arabia and US in 2021 Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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