September 30 report:
I. Price Trends
According to the commodity market analysis system, the price of pure benzene in the Shandong region of China rose this month. The price on September 1 was 8,331 CNY per ton; by September 30, the price had increased to 10,151 CNY per ton, a rise of 21.85% from the beginning of the month.
II. Market Analysis
Pure benzene: This month, the market price of pure benzene in Shandong region has increased. Currently, due to the uncertain prospects of the US-Iran negotiations, international crude oil futures have fallen, and cost support may loosen somewhat. In terms of ports, the inventory in East China is still at a low level, and the overall pressure of inventory accumulation is not significant, remaining at a historically low level for the same period. Local refining enterprises in Shandong have slightly raised their offers. Sinopec's refineries in East China, South China, and Central China are implementing a price of 10,200 CNY/ton for pure benzene, effective from September 29.
This month, Sinopec's pure benzene price was increased by 1950 CNY/ton to 10200 CNY/ton.
Downstream aspects
3. Future Market Forecast
Crude Oil Futures: On September 29, international crude oil futures closed lower. The U.S. WTI crude oil November contract settled at $89.38 per barrel, down $3.22, or 3.5%. The Brent crude oil December contract settled at $96.16 per barrel, down $1.67, or 1.7%.
Foreign market benzene: On September 29, FOB Korea rose by $8 to $1,185 per ton, while CFR China increased by $12 to $1,220 per ton. FOB Rotterdam fell by $53 to $1,359 per ton, and FOB USG declined by $9 to 542 cents per gallon.
Overall forecast: In the short term, the pure benzene market in China will operate with high-level fluctuations. It is still necessary to closely monitor cost and demand news. Continue to pay attention to the trends of crude oil and foreign markets, as well as the dynamics of pure benzene and downstream facilities, changes in demand, and their impacts on the price of pure benzene.
