According to the data of business associations, the price of pure benzene in China has basically declined this week, with a small decline. This week Sinopec continued to bid, with Sinopec lowering its price by about 150 yuan/ton from last week. This week, the lowest price of pure benzene appeared on Friday at 5000-5350 yuan/ton.
II. Analytical Review
1. Products: Huaxing Petrochemical started quoting this week. Following last week’s weaker market for pure benzene, Sinochem’s pure benzene companies continued to lower the price of pure benzene starting this week. Sinopec continued to bid at a high price of 5350 yuan per ton. Pure benzene port inventory continued to decline this week, but the downstream demand for pure benzene was insufficient to follow up, and market participants mostly held a wait-and-see attitude.
2. Crude oil: crude oil showed an inverted V trend this week, rising slowly at first and falling sharply at the close of Thursday. At the beginning of the week, oil prices were heading for a better trend, influenced by the Fed’s desire to cut interest rates and the persistence of risks in the supply of crude oil in the Persian Gulf. On Thursday, news came that the United States would impose a 10% tariff on $300 billion worth of Chinese imports starting in September. Market participants were worried that the international oil price had fallen sharply. Brent fell 4.66% this week from last week, while WTI fell 4% from last week.
3. Relevant industries: The impact of low prices from hydrobenzene made the pure benzene in East China begin to fall in the second half of the week, aggravating the price difference between Sinopec’s listing price and East China’s spot price, and the expected listing price or pressure drop in the market. However, the listing price which has not been adjusted for a long time still forms a certain support for the market, and the decline is limited.
4. External Disc: The downstream styrene start-up load in the United States has not changed much, and demand remains strong. However, with the successive arrival of products in the United States and the mostly low-inventory operation, the local prices have fallen sharply in recent months, thus affecting market confidence. However, the long-term prices continue to be firm, the overall change is not significant, and the overall impact on Korean resources has been felt. The force is moderate.
3. Future Market Forecast
1. Crude oil: The United States may increase tariff rates on Chinese goods, increase trade risk concerns, override the Fed’s interest rate cuts, and oil prices may still fall next week.
2. Domestic market: At present, domestic demand for pure benzene is weak, and pure benzene is facing shipment pressure. In addition, the sudden drop in crude oil has created a negative stimulus to the mentality of the bulk market, and pure benzene is still expected to decline.
Considering comprehensively, pure benzene market or weak operation next week.