The report points out that China's benzene industry was in a high boom cycle from 2020 to 2025, with both supply and demand growing at a high speed and the supply scale expanding significantly, thus establishing China's position as a major global producer, consumer, and importer. In 2026, the industry will enter an adjustment period, and the supply-demand structure will be characterized by destocking. However, there will be little improvement in absolute prices and processing spreads. The overall oversupply pattern of oil-to-chemicals and Sinopec's intermediate capacities requires a round of reshuffling and clearing adjustments, and benzene processing spreads may remain at a low level. Competition in downstream industries and the release of new capacities will also bring pressure to the market.