1、 Price trend

According to the data of the business club’s large scale list, this week’s pure benzene fell precipitously. On Friday (March 6), the price of pure benzene was 5050-5251 yuan / ton (average price 5150.2 yuan / ton), and on Friday, the price of pure benzene was 4350-4900 yuan / ton (average price 4680 yuan / ton), down 9.13% from last week. On Tuesday, the price of pure benzene fell significantly, down nearly 7% from the previous day.

2、 Analysis and comment

1. Product: this week, the pure benzene market was greatly affected by crude oil and external market, and the price was weak. Sinopec sharply lowered the listing price of pure benzene on Tuesday, from 600 yuan / ton to 4550 yuan / ton; local refineries lowered their prices according to their own conditions. Shandong pure benzene market lower willingness to receive goods, the overall deal was weak, Thursday and Friday sharp weakness. This week’s pure benzene port inventory slightly lower than last week.

2. Crude oil: at the beginning of the week, Saudi Arabia slashed the official price of crude oil in April and announced to increase its crude oil production in April. In addition, Russia refuses to cooperate with OPEC to deepen production reduction. The deep drop in oil prices this week has largely dragged down the market for pure benzene and crude oil related chemicals. Brent fell 30.03% and WTI fell 22.65% compared with March 6. Compared with the beginning of the year, Brent fell 52.3% and WTI fell 47.16%.

3. Downstream industry: the operating rate of styrene in the downstream rebounded. The 450000 T / a styrene plant of Shandong Yuhuang and 200000 t / a styrene plant of Ningbo Keyuan are planned to start operation next weekend, and the styrene production capacity is expected to continue to improve in the later stage. At present, the inventory pressure of styrene enterprises is large, and the inventory of East China port is high, which has a negative impact on pure benzene. The price of styrene in Shandong this week was 6250 yuan / ton, down 5.3% from last week.

Downstream aniline was affected by the sharp fall of pure benzene, which lowered the price for three consecutive days. On Friday, Shandong’s price was 6200 yuan / ton, while Nanjing’s price was 6450 yuan / ton, down 7.14% from last Friday.

3、 Future forecast

1. Crude oil: Saudi Arabia and Russia are willing to increase production. In addition, social public events currently have a greater impact overseas, and multiple factors affect the negative oil price. But the US will adopt an economic stimulus plan to deal with the negative effects.

2. Market aspect: crude oil and external market are not optimistic; downstream styrene production capacity is expected to increase, and the factory inventory is high, and other downstream products are also in storage and shipment with poor inventory accumulation.

The upstream and downstream double negative pure benzene, it is expected that the trend of short-term pure benzene is weak.