Price trend

According to the SunSirs Commodity Market Analysis System, benzene prices in Shandong Province initially rose before falling this month. Prices rose primarily in the first half of the month, while they fell in the second half. On August 1, the price was 6,075.33 RMB/ton; on August 29, it was 6,012 RMB/ton, a 1.04% decrease from the beginning of the month.

Analysis review

Benzene: Domestic benzene prices fell on August 29. Deferred imports continue to impact the domestic market, leading to pessimistic futures trading and low-price buying on paper goods, reflecting a lack of market confidence. Shandong refineries lowered their quotations, and on-site trading was average. Overall, the willingness to purchase for basic needs was insufficient, and benzene is expected to fluctuate and consolidate in the short term, with actual transactions being negotiated on a case-by-case basis.

Sinopec lowered its benzene price by 50 RMB/ton to 6,000 RMB/ton this month.

Market outlook

Crude oil futures: On August 28, international crude oil futures closed higher. The October contract for WTI crude oil futures settled at $64.60 per barrel, up $0.47, or 0.7%. The November contract for Brent crude oil futures settled at $67.98 per barrel, up $0.54, or 0.8%.

On August 28, benzene prices fell by $1 to $726/ton on FOB Korea and fell $1 to $742/ton on CFR China. FOB Rotterdam prices remained stable at $669/ton, while FOB US Gulf prices fell by 2 cents/gal to 258 cents/gal.

Overall, the benzene market is expected to fluctuate and consolidate in the short term, with investors waiting to see news on costs and demand. The impact of crude oil and foreign exchange market trends, benzene and downstream plant developments, and demand changes on benzene prices should continue to be closely monitored.

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