SunSirs: Benzol Market Fine-tuned Prices This Week, up 1.52% (September 21-25)

Price trend

From September 21 to 25, 2020, the market price of benzol was fine-tuned this week. The ex-factory price in North China was 2,473.75 RMB/ton at the beginning of the week and 2,511.25 RMB/ton on the weekend, a weekly increase of 1.52%.

On August 14, 2020, the price of pure benzene at Qilu Petrochemical (Sinopec North China) was reduced by 100 RMB/ton, and the adjusted price was 3,300 RMB/ton. As of September 25, Sinopec prices have not been adjusted.

Analysis review

Coking companies started well this week. After two rounds of increase in coke in September, Shandong took the lead in landing, and downstream demand was better. Coking companies generally started operations at a high level and the supply of crude work was sufficient. The price of benzol rose and fell mixed this week. The price in Shandong and Hebei rose slightly by around 50 RMB/ton, and the price in Shanxi was reduced by around 20 RMB/ton. Other Northeast China declined slightly. In terms of fundamentals, crude oil and pure benzene declined in the external market this week. Fundamentals are mainly negative. As of Friday, the benzol market in Shandong performed around 2,530-2,550 RMB/ton, an increase of 50 RMB/ton from last week.

In terms of downstream demand, the operating rate of hydrogenated benzene companies this week dropped by about 5% compared with last week. The cost pressure of hydrogenated benzene companies is still high, and some companies have stopped. Near the long holiday, most manufacturers have completed stocking, which has certain support for benzol prices.

Market outlook

In the market outlook, SunSirs believes that the cost pressure of downstream hydrogenated benzene companies is still relatively large, and the fundamentals of pure benzene and crude oil markets are weak, and the benefits are insufficient. The operating rate of phenol has been reduced significantly this week. Most other products have risen slightly. The profit situation is still not optimistic, the demand for hydrogenated benzene is limited, and the upward momentum of the benzol market is insufficient

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