Hydrogenated benzene does not have a deep fall basis

Pure benzene price trend in China

Hydrogenated benzene does not have a deep fall basis on the night of 19, in the NDRC "price stability", "intervention" and other policy influence, the market risk aversion sentiment heating up, chemical futures a large area of diving, a number of varieties fell limit, styrene plate prices fell sharply. 20 days of hydrogenated benzene under the influence of pessimism auction price is not ideal, two failed to auction, a transaction in 8006-8066 CNY/ton low. On that day, most hydrogenated benzene factories were pessimistic and reduced prices to attract customers, while traders and downstream companies were cautious and wait-and-see, waiting for a drop in sentiment, and there was less market buying, which worsened the further decline of hydrogenated benzene prices, and the low transaction price of the main producing areas fell to 7900-8000 CNY/ton.

Morning of October 21, after the fall of styrene futures disk rebound, coupled with the rising crude oil high and volatile, pessimism, east China pure benzene spot lows, the north-south gap, some traders and downstream the dips in the north procurement, inquiry atmosphere increase, partial hydrogenation of benzene plant started pretty price, and have scattered plant high exploratory 50 yuan, Transaction to 8000-8050 CNY/ton. But in the afternoon, the National Development and Reform Commission and the China Banking And Insurance Regulatory Commission voiced again, coal, carbon futures fell by the limit, styrene surface showed a rebound after the pattern of decline, and eventually east China pure benzene back up.

Under the clear attitude and measures of regulatory authorities, short-term market sentiment is difficult to release, but at present, the fundamentals of hydrogenated benzene have not changed.

Supply, this week the domestic benzene hydrogenation operating rate of 53.75%, Henan Yutian, Hebei Rongte, Hebei Yulong, Ningxia Tongde Love and other devices stopped, hydrogenated benzene supply reduced. Although there is a device restart next week, but the domestic benzene hydrogenation operation rate is difficult to exceed 60%, the overall supply increment is limited. Heard that Zhejiang Petrochemical normal pressure drop minus 50%, its pure benzene production did not increase as expected, but reduced, will support the east China market.

Demand, Shandong, Jinmao opened a set, planned to stop 7-10 days at the end of the month; Huatai has a short-term overhaul plan, but weiyuan parking phenol ketone plan to restart, the overall demand in North Shandong has little change, the new downstream of southwest Shandong will continue to bid, the demand for petroleum benzene increased. Hebei, Shijiao restart. In Shanxi, it was reported that the Yang-taiyuan coal plant will return to normal next week. But east China, Jiangsu downstream power limit production, as well as the impact of large downstream maintenance in the south, east China pure benzene demand is still weak. Generally speaking, the overall demand in north China is better than that in east China.

In the short term, under the strong government regulation policy, the market price fluctuation increases, and the uncertainty increases obviously. However, the overall supply may still be less than the demand, and it is still cautious and multi-thinking in the medium and long term, and it is difficult for the short-term market to fall significantly.