Price Trend

According to the business association’s big list data, the price of domestic pure benzene increased by 100-250 yuan/ton compared with last Friday. This week, the highest price of pure benzene appeared on Friday (September 6). The price ranged from 5300 to 5550 yuan/ton, up 3.05% from last week.

II. Analytical Review

1. Products: This week, the inventory of pure benzene in East China fell again, and the supply of market resources was on the tight side, which formed a favorable support for the price of pure benzene.

2. Crude Oil: This week, international oil prices rose rapidly after a sharp fall. Overall, they fell slightly from last Friday. Brent fell by 0.62% and WTI by 0.79%. Oil prices plunged as European and American manufacturing data sparked fears of global economic weakness and trade disputes. On Wednesday, news from the United States and Iraq warmed up and increased supply risk and oil prices rose rapidly.

3. Related industries: This week, the downstream East China Styrene Plant stopped production and maintenance, resulting in limited replenishment of hydrobenzene resources in East China, which is good for driving up the price of pure benzene.

4. External Disc: The weaker support of external disc at the beginning of the week led to a cautious attitude in the domestic market. Following the rise of international oil price, the price of pure benzene on the outer plate increased. The Asian-American arbitrage window is still open, but the shortage of resources in the early stage has eased and its influence on the market is limited.

3. Future Market Forecast

1. Crude oil: Concerns about the economic slowdown are still high, and crude oil may be vulnerable to shocks next week.

2. Domestic market: domestic pure benzene supply is tight, and Sinopec is expected to increase at present.

Taking into account, pure benzene is expected to continue to rise next week.