Pure benzene price rebound

According to the official wechat of the National Development and Reform Commission (NDRC) on Friday night, the coal supply level of centralized power plants across The country has repeatedly hit record highs as coal production capacity has been further released, the Daqin Line has been overhauled, long-term contracts for thermal coal have been fulfilled and transportation has accelerated. In particular, since the end of October, the average daily coal supply has exceeded coal consumption by more than 1.4 million tons, and coal storage has picked up quickly.

Recently, the average daily coal supply has continuously exceeded 8 million tons, 2 million tons more than coal consumption, and the coal storage level has recovered to over 100 million tons, an increase of nearly 25 million tons compared with the end of September.  Among them, the centralized adjustment power plants in the three northeastern provinces stored 12.5 million tons of coal, an increase of more than 6 million tons and nearly double that of the end of September, reaching the level of the same period last year.  From the daily railway loading and port loading, it is expected that the coal storage level will be further improved.

After the National Development and Reform Commission issued a document, the main contract of thermal coal futures in the night trading quickly fell below the 1000 mark for the first time, once falling more than 7%, hitting a new low in one and a half months.  

And part of the chemical futures also reversed, the disk began to rise, especially styrene, after falling back on the day, up 2.59% on Friday.  With its relatively large correlation of east China pure benzene spot days also appeared a rebound, the bad news is to come to an end, positive factors slightly warming up, some traders and downstream bargains actively enter the market to purchase, north part of hydrogenated benzene and Shandong refining petroleum benzene shipments turn good, inventory decline, low prices rose quickly.  

The price of sporadic hydrogenated benzene in Shandong province and petroleum benzene in Shandong province was negotiated at 7400-7500 CNY/ton on The 29th. The price of petroleum benzene in the 30th day of petroleum refining continued to rise, and the mainstream quotation was 7600-7700 CNY/ton. The level of petroleum benzene in the 31st day of petroleum refining was stable at 7600-7700 CNY/ton.  The price was also adjusted to 7700 CNY/ton home, which laid the foundation for next week's hydrogenated benzene low.  

But the regulatory pressure continues, and industry insiders say the NDRC's investigation into coal costs shows the government's confidence in regulating coal prices. In particular, the NDRC's latest document simply describes the findings that coal production costs are substantially lower than spot prices, which forms an argument for the unified benchmark price formulated by the Price Department. If macro control continues, the overall commodity market will return to a weak position under the risk aversion of the market, so the later market trend still needs to pay attention to more details of the coal price formation mechanism of the NDRC.