SunSirs: The Domestic Benzene Market Fluctuated and Rose in June

https://www.chemnet.com   Jun 26,2024 SunSirs

Price trend

According to the commodity market analysis system of SunSirs, the price of pure benzene had slightly increased this month. Since the beginning of the month, the price of pure benzene had been rising, and after mid month, the price had remained stable. However, the price had slightly declined towards the end of the month. On June 1st, the price was 9,125 RMB/ton; On June 31st, the price was 9,368 RMB/ton, an increase of 2.66% from the beginning of the month and 51.41% from the same period last year.

Analysis review

Pure benzene: The inventory in East China ports had decreased rapidly, with a total volume of less than 20,000 tons, and multiple factories had low inventory. The market supply was tight, and the pure benzene market remained volatile at a high level. Night trading of pure benzene was negotiated around 9,350 RMB/ton.

This month, the price of Sinopec pure benzene had risen to 9,450 RMB/ton.

Downstream

The styrene market has fluctuated and fallen. In June, there were more inspections of the styrene unit. On the 12th, Zhejiang Petrochemical's 600,000 ton/year styrene unit was shut down for two weeks for maintenance. On the 14th, Huaxing Petrochemical's 80,000 ton/year styrene unit was shut down for maintenance, and the restart time was uncertain. The 500,000 ton/year styrene plant of Gulf Chemical is scheduled to be shut down for maintenance for 45 days in July. Zibo Junchen, Satellite Petrochemical, Xinpu Chemical, and Anhui Jiaxi Styrene Units have reduced their load to 70% of operation. The inventory of styrene remained low, and domestic supply remained at a relatively low level. However, the losses in the styrene industry continued to expand, and downstream resistance to high prices had suppressed the increase in the styrene market.

Market outlook

Crude oil: International oil prices are rising. The NYMEX crude oil futures 08 contract rose by 0.90 US dollars per barrel, or 1.11%, at 81.63 US dollars per barrel; ICE oil futures contract 08 rose 0.77 US dollars per barrel, or 0.90%, at 86.01 US dollars per barrel. The main contract of China INE crude oil futures, 2408, fell 1.9 RMB/barrel to 618.8 RMB/barrel, and rose 5.0 RMB/barrel to 623.8 RMB/barrel in overnight trading.

The fundamentals were showing an upward trend recently, with sufficient supply on the market. Pure benzene may continue to rise in the short term, and waiting to see if the cost and demand sides can improve. Continue to monitor the trends of crude oil and external markets, as well as the impact of changes in demand and downstream equipment dynamics on the price of pure benzene.

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