Core Viewpoint - The Chinese benzene market is transitioning from a follower to a leader in international discourse, supported by the introduction of futures and options for pure benzene, which will enhance market stability and sustainable development [2][5][6] Capacity Expansion - Since 2007, China's pure benzene capacity has grown rapidly, from less than 5 million tons to an expected 32.34 million tons by 2024, with production reaching 25.13 million tons, accounting for 39% of global output [3] - The private refining sector is expected to add over 8 million tons of new capacity from 2023 to 2025, increasing domestic self-sufficiency to 90% [3] Supply and Demand Balance - The pure benzene market has experienced significant volatility, with expected price fluctuations of over 25% in 2024 and 27% in the first half of 2025, primarily due to supply-demand dynamics [4] - Despite short-term supply increases, long-term demand from sectors like new energy vehicles and biodegradable materials is expected to stabilize the market [4] Market Position Enhancement - The global pure benzene market is highly fragmented, with no single entity dominating, while China's market is characterized by an oligopoly structure driven by state-owned and private enterprises [5] - The launch of pure benzene futures and options is anticipated to enhance the market's position and shift international discourse from a follower to a leading role [5] Policy Support - The Ministry of Industry and Information Technology has announced a new round of policies to support the petrochemical industry, focusing on structural adjustments and the elimination of outdated capacity [6] - Domestic pure benzene production facilities have been upgraded to meet energy efficiency and environmental standards, reducing the pressure for elimination and ensuring compliance with international product quality [6]