Benzene – Uses, Prices, and Production

This blog is the fourth in a series of blogs I plan to write providing use, price, and production data on high-use inorganic and organic chemicals.  Click here to see the first blog in this series and a list of chemicals to be featured.  This blog provides data on benzene.

Uses.  Uses of benzene include:

Ø  As a starting material in synthesizing other chemicals;

Ø  As a gasoline additive; and

Ø  As a solvent.

Benzene primary use (more than 90% of benzene used) is as a starting material in synthesizing four chemicals:  ethylbenzene (~50%); cumene (isopropyl benzene) (~20%); cyclohexane (~10%); and nitrobenzene (~10%).  These four chemicals are then in turn used in making many industrial and consumer products.  Benzene’s use is growing (estimated in the 3 to 4% range annually) as demand for the many industrial and consumer products (made from those four chemicals) grow.

Benzene’s use as a solvent is decreasing significantly as benzene needs to handled cautiously, due to its exposure limits for health reasons.

Benzene is derived from petroleum using primarily one of two processes: steam cracking (~40% of benzene produced) and catalytic cracking (~40%).   Benzene is also made from methyl benzene (toluene) (~20% of benzene produced).  Methyl benzene is a by-product in the production of gasoline from petroleum.

Prices.  Global benzene 2019 metric ton (mt) prices appearing on the Internet are mostly in the $700 to $800 per mt range.  Benzene prices can vary considerably over short periods as the prices of the petroleum from which it is derived and the prices of the chemicals, which benzene is used to make, change.  These prices depend on many supply, demand, and other factors, causing the prices to change frequently.

Production.  Global benzene 2019 production estimates are in the high 40s to low 50s million mt range.  Assuming a 2019 average price for benzene of $750 per mt (see prices above) and an estimated 2019 production of 50 million mt, estimated global revenues from benzene sales in 2019 are around $38 billion ($750 per mt times 50 million mt).