China Approves Benzene Futures and Options Global Market Impact Expected

On June 20, 2025, the China Securities Regulatory Commission (CSRC) announced the approval of benzene futures and options registration on the Dalian Commodity Exchange (DCE). This move is set to enhance price risk management for the chemical industry and strengthen China’s position in the global benzene market.

Benzene is a key organic chemical raw material, linking petroleum and coal with downstream industries such as synthetic resins, fibers, and rubber. Its end-use products span home appliances, textiles, automobiles, and construction materials. As the world’s largest producer and consumer, China accounted for 39% of global output in 2024, producing 25.13 million tons out of a total capacity of 32.34 million tons. Consumption reached 29.26 million tons, representing 43% of global demand, with imports totaling 4.31 million tons and a 15% dependency rate.

The benzene market has faced significant price volatility in recent years due to global oil prices, economic shifts, and trade patterns. In 2025, prices dropped 31%, from a high of 7,780 yuan/ton to 5,375 yuan/ton, driving strong demand for hedging tools among enterprises.

Market experts note that benzene's large market size, high standardization, and well-established infrastructure make it ideal for futures and options trading. These contracts will complement styrene futures and options, creating a comprehensive risk management toolkit for the benzene-styrene value chain. This will enable enterprises to stabilize profits and improve the overall resilience of the chemical sector.

A DCE representative emphasized that benzene futures and options will help establish a transparent and authoritative "China Benzene Price", boosting China’s pricing influence in international trade. This development will support China’s transformation from a chemical manufacturing giant to a global innovation leader.

The CSRC stated that it will ensure the DCE is well-prepared for the smooth launch and stable operation of benzene futures and options.