SunSirs: The Price of Pure Benzene in Shandong Stopped Rising and the Market Loosened

Price trend

According to data from SunSirs’ bulk list, pure benzene in Shandong stopped rising and fell this week, while fluctuations in other regions were not significant. The listing price of pure benzene on September 6 was 3,170-3,450 RMB/ton (average price of 3,410 RMB/ton); this Sunday (September 13) the listing price of pure benzene was 3,070-3,450 RMB/ton (average price of 3,410 RMB/ton).

Analysis review   

The raw materials for downstream products and equipment in the north are exported, and the market supply has increased, which has caused prices to continue to weaken. Coupled with the impact of the sharp drop in crude oil during the week, the focus of the pure benzene market shifted downward.

In terms of the external disk, the external disk fell continuously this week, with insufficient support. On Friday (September 11) South Korea imported 414.33 US dollars /ton of pure benzene, which was a decrease of 20.67 US dollars/ton or 4.75% from September 4; East China imported 424 US dollars/ton of pure benzene, which was a decrease of 2 US dollars/ton from September 4, a decrease of 0.47%.

In terms of crude oil, energy demand has entered the off-season after the US Labor Day. In addition, US commercial crude oil inventories have increased for the first time in seven weeks. Supply and demand problems have intensified. This week, international oil prices fell below 40 US dollars per barrel. Compared with September 4, this week, Brent fell by 2.165 US dollars/barrel, or 5.25%, and WTI fell by 2.5 US dollars/barrel, or 6.23%. Compared with December 31, 2019, Brent dropped 41.52%, and WTI dropped 38.05%.

Downstream: On September 13, the price of styrene in Shandong was 5,300 RMB/ton, down 66.67 RMB/ton or 1.24% from last week.

In the second half of the week, aniline companies in East China had fewer spot sales due to stockpiling, and prices rose. The supply and demand of Shandong enterprises have not changed much, and the prices are stable. On September 11, the price of aniline in Shandong was 4,350-4,480 RMB/ton, and the price of aniline in Nanjing was 4,700-4,800 RMB/ton.

Market outlook

In terms of crude oil, the decline in crude oil has eased and is expected to rebound slightly next week.

The downstream equipment in East China was put into production smoothly and the situation is good; Shandong has ample supply of pure benzene and new output, which is difficult to consume in the downstream in the short term. It is expected that the price of pure benzene in Shandong may still fall.

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