1、 Price trend

 

PVA 1788 (PVA BP17)

According to the bulk list data of business cooperatives, the price of pure benzene fell broadly this week. On October 28, the price of pure benzene was 7500-7750 yuan/ton (the average price was 7472 yuan/ton), and on Friday (November 4), the price of pure benzene was 6900-7050 yuan/ton (the average price was 6967 yuan/ton), down 6.76% from last week and 8.57% from the same period last year.

 

2、 Analysis and review

 

At the beginning of the week, the pure benzene inventory at ports in East China rose to 73200 tons, and the import of pure benzene at ports is expected to increase in the future. Downstream market decline is the main trend, with strong resistance to high price pure benzene. In addition, the industry is short of the future pure benzene market, with general interest in market procurement, weak demand in the north, and strong factory willingness to ship. The supply side increased while the demand side declined, and the price fell continuously during the week.

 

Sinopec cut the price of pure benzene twice this week, from 450 yuan/ton to 7000 yuan/ton.

 

In terms of external market, the reference price of pure benzene in the Korean market on Thursday (November 3) fell by 7.09% to US $786/ton, down by US $60/ton year on year; The reference import price in East China was 818 US dollars/ton, a year-on-year drop of 47 US dollars/ton, or 5.43%.

 

In terms of crude oil, the economic data performed better than expected. Superimposed on the decline of the US dollar, the US crude oil and gasoline stocks declined. OPEC+promoted production reduction. The demand of the oil market may improve. The overall international oil price rose this week. As of November 4, Brent prices this week rose by 2.8 dollars/barrel, or 2.92%, compared with last week; WTI rose $4.71 per barrel, or 5.36%.

 

PVA

Downstream

 

3、 Future market forecast

 

In terms of crude oil, in the later stage, the macro and supply and demand sides are still good for the oil market, and the oil price may be stronger in the future. However, before the European embargo on crude oil and product oil from Russia comes into effect, the oil market is still uncertain due to the disturbance of geopolitical factors. We will continue to pay attention to the geopolitical situation, the latest OPEC+production policy, the stock dynamics of U.S. crude oil and refined oil, and the impact of global economic conditions on crude oil prices.

 

The drop in the price of pure benzene led to a slight improvement in market buying, but the overall turnover was limited. There is still an increase in the supply side, and the overall downstream demand is poor. It is expected that pure benzene will continue its weak operation in the short term. Continue to pay attention to the impact of crude oil, external price trend, pure benzene port inventory dynamics and pure benzene and downstream device dynamics on prices.

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