SunSirs: Brief Overview of Benzene Market Trends in May (May 1-29)

Price trend

According to the SunSirs Commodity Market Analysis System, the benzene market in the Shandong region this month was characterized primarily by price fluctuations within a specific range, though overall, prices registered a slight increase. On May 1, the price stood at 8,636.67 RMB/ton; by May 29, the price had fallen to 7,736.67 RMB/ton—a decline of 10.42% compared to the beginning of the month.

Market Analysis

Benzene: On May 29, domestic benzene market prices declined. According to the latest reports, the U.S. has stated that both parties have reached an agreement regarding a Memorandum of Understanding; however, the agreement still requires approval from the respective high-level authorities on both sides. Market sentiment regarding the prospects of U.S.-Iran negotiations leans toward optimism, suggesting that support from the crude oil market may weaken. Compounded by sluggish demand for benzene and a lack of bullish catalysts, prices at independent refineries in Shandong province experienced a slight downturn. Sinopec’s refineries across East and South China lowered their benzene prices by 300 RMB/ton, setting the new effective rate at 7,700 RMB/ton, effective as of May 29. In the short term, the benzene market is expected to continue trading within a weak and volatile range.

This month, Sinopec lowered its benzene price by 1,150 RMB/ton to 7,700 RMB/ton.

Market Outlook:

Crude Oil Futures: On May 28, international crude oil futures closed slightly higher. The settlement price for the July contract of U.S. WTI crude oil futures stood at $88.90 per barrel, up $0.22, or 0.25%. The July contract for Brent crude oil futures closed lower, settling at $93.71 per barrel—a decline of $0.58, or 0.6%. The most actively traded August contract rose $0.45, or 0.5%, to $92.70 per barrel.

International Benzene Markets: On May 28, FOB Korea stood at $1,005/ton, and CFR China at $1,005/ton. FOB Rotterdam fell by $13 to $1,224/ton, while FOB USG dropped by 23 cents to 411 cents/gallon.

Overall Outlook: Market sentiment regarding the prospects of U.S.-Iran talks remains cautiously optimistic; consequently, the benzene market is expected to experience weak, fluctuating performance in the short term. It remains essential to maintain a wait-and-see stance regarding developments on both the cost and demand fronts. Market participants should continue to monitor trends in crude oil and international markets, as well as the impact of operational updates at benzene and downstream facilities—along with shifts in demand dynamics—on benzene pricing.

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