September 24th report:
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 9,684.33 CNY/ton on Monday and 9,857.67 CNY/ton on Friday, with a weekly increase of 1.79%.
2. Market Analysis
Pure benzene: This week, the market price of pure benzene in Shandong region has increased. On Thursday, the price of pure benzene from Sinopec's refineries in East China, South China, and Central China was raised by 300 yuan, with the latest price at 9,900 CNY/ton, effective from September 24. Currently, the traffic volume through the Strait of Hormuz has dropped to single digits, which led to an increase in international crude oil futures yesterday. This has boosted confidence in the Chinese pure benzene market, leading to a rise in the price of pure benzene this week.
Downstream sector
3. Future Market Forecast
Crude Oil Futures: On September 23, international crude oil futures closed higher. The U.S. WTI crude oil futures November contract settled at $92.16 per barrel, up $1.64, or 1.8%. Brent crude oil futures December contract settled at $95.41 per barrel, up $2.71, or 2.8%.
Foreign market benzene: On September 23, FOB Korea fell by $19 to $1,138 per ton, while CFR China dropped by $17 to $1,159 per ton. FOB Rotterdam declined by $14 to $1,317 per ton, and FOB USG remained steady at 568 cents per gallon.
Overall forecast: In the short term, pure benzene is expected to show a strong fluctuation. We will be watching for news on cost and demand. Continued attention should be paid to the impact of crude oil and foreign market trends, as well as the dynamics of pure benzene and downstream facilities, and changes in demand, on the price of pure benzene in China.
