Core Insights - The article discusses the seasonal decline in pure benzene futures driven by downstream demand, with a notable decrease in operating rates expected in late September [1][2] Group 1: Downstream Demand and Production - From January to September, downstream demand for pure benzene increased by 8% year-on-year, with specific products like styrene, caprolactam, and phenol seeing demand growth of 17.3%, 7.6%, and 2% respectively [1] - Styrene production profits were satisfactory from May to July, but high operating rates led to increased supply, causing profits to decline significantly from August onwards, reaching historical lows [1] - Operating rates for styrene, caprolactam, and adipic acid have shown a month-on-month decline recently, indicating a potential further decrease in production rates due to weak terminal demand [1] Group 2: Supply and Import Dynamics - China is the largest consumer and importer of pure benzene globally, with an import dependency of about 20% [2] - From January to September, domestic pure benzene production rose by 5.7%, while imports surged by 40.5%, leading to a total supply increase of 10.4% [2] - The significant rise in imports is attributed to the near-total shipment of Korean pure benzene to China since last year's fourth quarter, with a total of 4.115 million tons imported from Korea in the first three quarters of this year [2] Group 3: Cost and Price Outlook - The long-term outlook for the crude oil market suggests a supply surplus, with recent geopolitical risks decreasing, which may lead to lower crude oil prices and weaker cost support for pure benzene [2] - The expectation is that while short-term crude oil prices may decline and terminal demand remains weak, medium to long-term factors such as high downstream operating rates and decreasing import volumes could support pure benzene prices, with futures contracts anticipated to experience a decline followed by a rise [2]

1. Report Core View - In July 2025, China's pure benzene imports met expectations, with significant month - on - month and year - on - year increases [2]. - The increase in imports was mainly due to statistical time - frame differences, delayed arrivals, and the fact that the US no longer diverted South Korean pure benzene [2]. - South Korea and Japan were the main contributors to the increase in imports, while imports from some regions such as Europe decreased [2][3]. 2. Summary by Relevant Catalog 2.1 Total Imports - In July 2025, China's pure benzene imports were 508,000 tons, a month - on - month increase of 153,000 tons (+43.3%) and a year - on - year increase of 158,000 tons (+45.3%) [2]. 2.2 Import Sources - South Korea: In July 2025, imports from South Korea were 264,000 tons, a month - on - month increase of 123,000 tons, the main source of the increase in total imports [3]. - Southeast Asia (including India): Imports in July were 167,000 tons, a month - on - month increase of 19,000 tons. Imports from Indonesia and Malaysia increased due to the restart of some pure benzene plants, while imports from India decreased as its pure benzene was diverted to Singapore and the Middle East [3]. - Japan: Imports in July were 38,000 tons, a month - on - month increase of 23,000 tons, due to the restart of some pure benzene plants and increased export volume [3]. - Europe: Imports in July were 17,000 tons, a month - on - month decrease of 29,000 tons [3]. - Middle East: Imports in July were 22,000 tons, a month - on - month increase of 22,000 tons [3].

Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints - In July 2025, China's pure benzene imports reached 508,000 tons, in line with expectations. The month - on - month increase was due to statistical time - caliber differences and delayed arrivals, and the year - on - year increase was because the US no longer diverted South Korean pure benzene [2]. - South Korea and Japan were the main sources of the increase in imports in July 2025, with South Korea's imports contributing significantly to the overall increase [2][3]. 3. Summary by Related Catalogs Total Quantity - In July 2025, China's domestic pure benzene imports were 508,000 tons, up 153,000 tons (43.3%) month - on - month and 158,000 tons (45.3%) year - on - year [2]. Import Sources - In July 2025, imports from South Korea were 264,000 tons, a month - on - month increase of 123,000 tons, the main source of the increase in total imports [3]. - Imports from Southeast Asia (including India) were 167,000 tons in July, a month - on - month increase of 19,000 tons. Imports from Indonesia and Malaysia increased due to the restart of some pure benzene plants, while imports from India decreased because its pure benzene was diverted to Singapore and the Middle East. Imports from Brunei decreased [3]. - Imports from Japan were 38,000 tons in July, a month - on - month increase of 23,000 tons, due to the restart of some pure benzene plants and increased export volume [3]. - Imports from Europe were 17,000 tons in July, a month - on - month decrease of 29,000 tons [3]. - Imports from the Middle East were 22,000 tons in July, a month - on - month increase of 22,000 tons [3].