Price Trend

According to the data from the business associations’list, the price of pure benzene was between 5000 and 5350 yuan/ton at the beginning of this month. It began to decline on August 5, and reached the lowest price of 4750-5100 yuan/ton on August 12. On the 14th, it began to stop falling and rebound, and stepped up. At the end of this month, the price of pure benzene ranged from 5200 to 5300 yuan/ton, up 1.15% from last month.

II. Analytical Review

1. Crude oil: European and American crude oil shocks fell in August. Oil distribution fell 6.54% from the end of last month, while U.S. oil fell 3.91% from the end of last month. Bear: Mainly affected by trade disputes, market concerns about slowing economic growth, declining demand for crude oil intensified, and oil prices fell. Game with other positive factors, leading to this month’s international oil price shocks.

2. Products: At the beginning of the month, the price of crude oil and pure benzene on the external market continued to fall, which had a negative impact on the domestic market, and the downstream market was relatively weak, with the price of pure benzene falling. Affected by typhoon in the middle of the year, some installations in Shandong stopped, the supply decreased, and the price of pure benzene rebounded. Subsequently, due to the shortfall in the supply of pure benzene in the United States, the price of pure benzene in the U.S. dollar disk continued to rise, and the arbitrage window between the United States and South Korea remained open, supporting the domestic pure benzene market to improve.

3. Downstream: Aniline in the lower reaches of this month rose by 3.39% and fluctuated by nearly 8% compared with the previous month. Aniline downstream market is general, this month’s price fluctuations are mainly affected by pure benzene prices. The price of downstream styrene was basically flat compared with that of last month, with a monthly fluctuation of about 4%. This month, downstream pure styrene has a larger profit and a better market.

3. Future Market Forecast

1. Crude oil: Although the crude oil market is improving at the end of the month, the pressure of trade disputes is still huge and the market is not optimistic.

2. Domestic and foreign markets: At present, domestic pure benzene stock is relatively small, and Korean plant overhaul and European overhaul are not yet over, global supply is tight, boosting the market. Hearing that the current CFR China talks in September are still on the low side, it is expected that shipments will be limited throughout September. At present, the price difference between Sinopec and other domestic pure benzene enterprises is relatively small, and there is still an upward possibility.

Taking into account, the short-term pure benzene market is expected to continue to rise.