South Korea’s Aromatics Exports Slump as Local Supply Tightens

South Korean exports of Paraxylene (PX) fell 3% month-on-month to 473,331 metric tons in January. This contraction was largely driven by local refiners shifting their strategy to prioritize internal consumption, leaving fewer spot cargoes available for export. At the same time, China’s increasing self-sufficiency significantly weighed on demand. As Chinese PX plants maintained high operating rates of nearly 87%, the need for South Korean imports diminished, leading to a 5.6% drop in shipments to the mainland.

The market for Mixed Xylene (MX) underwent a fundamental shift as South Korea flipped into a net-importer role to sustain its own production. To maximize PX output and capture widening price spreads, refiners ramped up internal MX consumption, causing imports to surge by 124% to 47,795 metric tons. This domestic squeeze left little room for outbound trade, resulting in a 5.6% decline in MX exports and pushing spot prices up to an average of $726.32 per metric ton.

Divergent Trends in Benzene and Toluene

The benzene sector faced even steeper headwinds, with exports plunging 21.8% to 233,332 metric tons. Shipments to the U.S. nearly evaporated, falling 83.5% as high freight rates and tariff uncertainties effectively shuttered the trans-Pacific arbitrage window. According to industry data, Chinese buyers also pulled back, favoring cheaper local inventories over South Korean cargoes as regional prices surged nearly 8% during the month.

In contrast, toluene emerged as a bright spot, with exports jumping 26.8% to 86,019 metric tons. This growth was fueled by a 62.8% spike in shipments to the U.S. for seasonal gasoline blending and a 73.6% surge in demand from India’s recovering industrial sectors. Looking ahead to the February-March window, reports from Chemical Market Analytics suggest South Korean refiners will likely maintain high aromatics throughput, continuing to favor chemical extraction over gasoline blending to capture prevailing margins.