SunSirs: Brief Overview of Benzene Price Trends in June

Price trends

According to the commodity market analysis system of SunSirs, the market price of benzene in the Shandong region declined in June. The price stood at 7,620 RMB/ton on June 1 and 6,736.67 RMB/ton on June 30, representing a drop of 11.59% over the month.

Market Analysis

Benzene: Overall, the market price of benzene in the Shandong region declined this month. Port inventories continued to decrease, keeping stock levels low in the short term, though prices rebounded from their lows at the end of the month. Independent refineries in Shandong raised their offer prices slightly. Sinopec refineries in East and South China set their benzene price at 6,700 RMB/ton, effective June 26. The market is expected to experience fluctuations with an upward bias in the short term.

In June, Sinopec lowered its benzene price by 1,000 RMB/ton to 6,700 RMB/ton.

Market Outlook:

Crude Oil Futures: On June 29, international crude oil futures closed higher. The settlement price for the August contract of U.S. WTI crude oil futures rose by $1.52 (2.2%) to $70.75 per barrel. The settlement price for the September contract of Brent crude oil futures increased by $1.31 (1.8%) to $73.91 per barrel.

Overseas benzene: On June 29, the FOB Korea price rose by $22 to $807/tonne, and the CFR China price rose by $22 to $828/tonne. The FOB Rotterdam price increased by $31 to $1,123/tonne, while the FOB USG price rose by 4 cents to 362 cents/gallon.

Overall Outlook: The benzene market is expected to experience fluctuations with an upward bias in the near term. Market participants should continue to monitor developments regarding costs and demand. Ongoing attention should be paid to the impact of crude oil and overseas market trends, the operational status of benzene and downstream units, and shifts in demand on benzene prices.

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