SunSirs: Brief Overview of Benzene Trends in July (July 1-30)

Price trend

According to the SunSirs’ Commodity Market Analysis System, benzene prices in Shandong Province experienced a volatile upward trend in July. Prices fluctuated downward in the first half of the month, initially increased before falling in the middle of the month, and then surged in the second half of the month. On July 1, the price was 5,942 RMB/ton; on July 30, it was 6,078.67 RMB/ton, a 2.3% increase from the beginning of the month.

Analysis review

Benzene: On July 30, domestic benzene market prices were mainly rising. Rising crude oil prices, coupled with upward movement in styrene and benzene futures, boosted benzene market confidence. Shandong local refineries continued to raise their quotes, leading to strong trading volume and difficulty finding lower bids. Overall, macroeconomic policies were positive, and with major refiners raising their listed prices, benzene is expected to remain firm in the short term, with actual transaction prices subject to negotiation.

Sinopec raised its benzene price by 50 RMB/ton to 6,050 RMB/ton this month.

Market outlook

Crude oil futures: On July 29, international crude oil futures rose. The September contract for U.S. West Texas Intermediate (WTI) crude oil futures settled at $69.21 per barrel, up $2.50, or 3.7%. The September contract for Brent crude oil futures settled at $72.51 per barrel, up $2.47, or 3.5%. Concerns about Russian fuel supply disruptions and the trade agreement between the U.S. and the European Union supported the continued rise in oil prices.

Benzene overseas prices: On July 29th, FOB Korea prices rose by 7% to $745/ton, and CFR China prices rose by 7% to $758/ton. FOB Rotterdam prices fell by 9% to $745/ton, while FOB US Gulf prices remained stable at 279 cents/gal.

In the short term, the benzene market will continue to be stronger, with investors watching for price fluctuations and demand factors. Continue to monitor the impact of crude oil and overseas market trends, benzene and downstream plant developments, and demand changes on benzene prices.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.