Price Trend

According to the data of the business associations’big list, some enterprises have slightly increased the price of pure benzene at the beginning of this month. Domestic price changes of pure benzene are concentrated at the end of this month, and the price of enterprises has increased slightly. At the beginning of this month, the price of pure benzene ranged from 4300 to 4450 yuan/ton. At the end of this month, the price of pure benzene ranged from 4300 to 4500 yuan/ton, with a monthly increase of 0.45%. The highest price of this month appeared from May 30 to 31.

II. Analytical Review

1. Crude oil: Brent crude oil and U.S. crude oil prices in May showed a general trend of high at the beginning of the month and low at the end of the month. Fearing that the escalation of trade disputes will restrain economic growth, the decline of US stock market will drag down the atmosphere of oil market, and the decline of crude oil futures in Europe and the United States will be affected by a combination of factors, starting in late May.

2. Products: At the beginning of this month, some enterprises made small adjustments to pure benzene. Domestic price changes of pure benzene were mainly concentrated at the end of the month, and the price of pure benzene rose slightly. At the beginning of this month, domestic pure phenyl has not changed much, pure benzene inventory has been reduced, but although the market trading atmosphere is light, prices are strong as a whole, low-cost resources are difficult to find. The price of pure benzene has been rising steadily and slightly since the end of this month. Pure benzene inventories have been reduced again, and the reduction has been enlarged compared with the earlier period. The market is slightly encouraged. Prices began to rise at the end of the month, but the increase is limited by the current low price of hydrobenzene. Some of Sinochem’s enterprises parked and repaired in the middle of this month, which supported the price of pure benzene.

3. Downstream: Aniline prices in the lower reaches of this month have basically stabilized after the beginning of the month, which has little support for the price of pure benzene; maleic anhydride shows a downward trend this month, which does not support the price of pure benzene; acetone shows a downward trend as a whole this month, but also does not support the price of pure benzene.

3. Future Market Forecast

1. Crude oil: Concerned about the economic restraint of trade disputes and the weakness of market economy, oil prices may continue to show a weak trend in June.

2. Domestic market: In June-July, the overhaul load of factories has been increasing. The upside-down of internal and external plates in the early period may lead to a substantial reduction in the arrival of goods in June. In addition to the hot weather, the reservoir area has the consideration of lowering the safe liquid level. It is expected that the supply or a certain reduction will support the price of subsequent pure benzene.

Considering comprehensively, it is expected that pure benzene will continue to increase steadily or slightly in June.