August 14 news
I. Price Trends
According to the commodity market analysis system, this week, the pure benzene market prices in Shandong region of China fluctuated and increased. The price of pure benzene was 7,434.33 CNY per ton on Monday and 7,494.33 CNY per ton on Friday, with a weekly increase of 0.81%.
2. Market Analysis
Pure benzene: Judging from its weekly trend, the price of pure benzene initially rose and then fell. From the beginning of the week to Wednesday, prices rose consecutively; however, on Thursday, there was a noticeable decline. During the week, Sinopec’s refineries in East China, South China, and Central China raised their pure benzene prices twice in a row, with a cumulative increase of 350 yuan. Currently, the latest price of pure benzene stands at 7,700 CNY per ton, effective August 12. At present, the U.S.-Iran standoff remains in a stalemate, easing market concerns. As a result, support for pure benzene has weakened, and there are no significant positive news items to bolster the market. Consequently, the center of gravity in the pure benzene market is stuck in a period of consolidation.
Downstream sector
3. Future Market Forecast
Crude Oil Futures: On August 13, international crude oil futures closed lower. The settlement price for the September contract of U.S. WTI crude oil futures was $81.25 per barrel, down $2.02, or 2.4%. The settlement price for the October contract of Brent crude oil futures was $87.07 per barrel, down $1.91, or 2.2%.
Foreign market benzene: On August 13, FOB Korea fell by $2 to $943 per ton, and CFR China fell by $1 to $956 per ton. FOB Rotterdam rose by $19 to $1,152 per ton, and FOB USG rose by $5 to 463 cents per gallon.
Overall forecast: In the short term, the pure benzene market is expected to remain in a range-bound, volatile pattern. Stay tuned for developments on cost factors and demand-side news. Continue to monitor the trends in crude oil prices and overseas markets, as well as the impact of dynamics in pure benzene production facilities and downstream industries, and changes in demand, on pure benzene prices.
