September 11th News
I. Price Trends
According to the commodity market analysis system, the price of pure benzene in the Shandong region of China increased this week. The price of pure benzene was 8,774.33 CNY per ton on Monday and 9,834.33 CNY per ton on Friday, with a weekly increase of 12.08%.
II. Market Analysis
Pure benzene: This week, the market price of pure benzene in Shandong region has significantly increased. During the week, the prices of pure benzene from Sinopec's plants in East China, South China, and Central China were raised twice, with a total increase of 850 yuan. The latest price of pure benzene is 9,900 CNY/ton, effective from September 10. Currently, the situation between the United States and Iran has escalated, and due to the impact of the war in Iran on global inventory consumption, the U.S. Energy Information Administration has revised its oil price forecasts for this year and next year upward. The strong rise in international crude oil futures has provided solid support for pure benzene, leading to a significant increase in the price of pure benzene during the week. However, the rapid rise in the price of pure benzene has also increased the risks, and downstream buyers are struggling to keep up with the price increases, with most buyers withdrawing from the market.
Downstream aspects
3. Future Market Forecast
Crude Oil Futures: On September 10, international crude oil futures surged. The October contract for U.S. WTI crude oil futures closed at $102.48 per barrel, up $6.43, or 6.7%. The November contract for Brent crude oil futures closed at $107.63 per barrel, up $6.42, or 6.3%.
Foreign market benzene: On September 10, FOB Korea rose by $39 to $1,212 per ton, and CFR China rose by $40 to $1,239 per ton. FOB Rotterdam remained stable at $1,226 per ton, while FOB USG increased by 22 cents to 496 cents per gallon.
Overall forecast: In the short term, pure benzene prices are expected to remain volatile at high levels. Stay tuned for developments on cost factors and demand-side news. Continue to monitor crude oil prices, overseas market trends, as well as the dynamics of pure benzene and downstream facilities and changes in demand, all of which will influence pure benzene prices.
