SunSirs: The Hydrogenated Benzene Market Is Temporarily Stable Before the Holiday (September 27-30)

Price trend

The hydrogenated benzene commodity index was 36.78 on September 29, which was the same as previous day. It was down by 63.94% from the cycle high of 102.01 points (2014-01-09) and up by 22.64% from the low of 29.99 points on April 07, 2020. . (Note: Period refers to 2013-12-01 to present).

Analysis review   

This week (September 27-30), the market price of hydrogenated benzene in Shandong has declined slightly, starting at 3,115 RMB/ton at the beginning of the week and 3,110 RMB/ton on weekends, down 5 RMB/ton.

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. Since then, Sinopec prices have not been adjusted.

This week is the last trading week before the holiday. The companies that stocked up before have basically completed their purchases. This week, the market transactions are general, and the prices are temporarily stable. The operating rate at the end of September increased slightly, and some devices were restarted. There are still several companies planning to restart after the holiday, and it is expected that the operating rate will continue to rise by then. The price of crude benzene before the holiday is mainly stable, and the bidding price on the 24th is still maintained. The overall market is relatively flat, but the cost pressure of hydrogenated benzene enterprises is greater.

On the downstream side, in the fourth quarter, there will be about 2.5 million tons of new production capacity planned to be put into production in the downstream of pure benzene and hydrogenated benzene. Demand for pure benzene and hydrogenated benzene will increase, and demand support will improve to a certain extent.

Market outlook

In the future, SunSirs believes that the crude oil market and the pure benzene external market before the long holiday are under-supported, and the fundamental benefits are limited. The demand growth brought about by the pre-holiday stocking has come to an end. After the holiday, the production of hydrogenated benzene units has increased, and some downstream demand has also been released. After the holiday, focus on whether each device is put into production on schedule.

If you have any questions, please feel free to contact SunSirs with suooort@sunsirs.com.