SunSirs: Benzene Market Prices Rose Last Week (Aug. 31-Sept. 4)

Price trends

According to the commodity market analysis system of SunSirs, the market price of benzene in the Shandong region rose last week. The price stood at 8,127.67 RMB/ton on Monday and 8,751 RMB/ton on Friday, marking a 7.67% increase over the week.

Market Analysis

Benzene: Market prices for benzene in the Shandong region rose this week. Sinopec refineries in East, South, and Central China raised their prices three times during the week, resulting in a cumulative increase of 650 RMB/ton; the latest price stands at 8,900 RMB/ton, effective August 21. Escalating tensions between the U.S. and Iran have driven international oil prices to rise amidst strong volatility, providing robust support for benzene and pushing its market trend upward. Today, independent refineries in Shandong continued to raise their quotes, though the magnitude of the price increases narrowed.

Market Outlook

Crude Oil Futures: On September 3, international crude oil futures saw mixed results. U.S. WTI crude futures closed higher, with the October contract settling at $91.30 per barrel, up $0.29 or 0.3%. Brent crude futures closed lower, with the November contract settling at $95.52 per barrel, down $0.11 or 0.1%.

Overseas benzene: On September 3, FOB Korea prices rose by $6 to $1,091/tonne, and CFR China prices rose by $7 to $1,114/tonne. FOB Rotterdam prices fell by $6 to $1,185/tonne, while FOB USG prices rose by 1 cent to 470 cents/gallon.

Overall outlook: benzene prices are expected to fluctuate at high levels in the short term. Market participants are monitoring developments regarding costs and demand. Continued 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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