SunSirs: High Inventory Levels, the Domestic Pure Benzene Market Declined

https://www.chemnet.com   Jul 23,2024 SunSirs

Price trend

According to the Commodity Market Analysis System of SunSirs, the price of pure benzene has fallen this month, with a price of 8,834.67 RMB/ton on July 12th; On July 19th, the price was 8,544.67 RMB/ton, a decrease of 2.18% from the beginning of the month and an increase of 25.65% from the same period last year.

Analysis review

Pure benzene: The overall trend of pure benzene continued to decline. As of July 19th, the inventory of pure benzene at ports in Jiangsu Province continued to rise, with a total inventory of 44,000 tons, an increase of 14,000 tons or 46.67% compared to the previous period's inventory of 30,000 tons. The downstream maintenance equipment for pure benzene had increased, and it is expected that inventory will rise in July and August. As of July 19th, the mainstream spot price of pure benzene in Shandong market was 8,500 RMB/ton. As of July 19th, the downward trend of pure benzene market had slightly stopped, and it is expected that the price of pure benzene will mainly decline slightly in late July.

This month, the price of pure benzene from Sinopec had dropped to 8,600 RMB/ton.

Downstream: The market price of styrene had slightly decreased this week. International oil prices had fluctuated, with a significant decline in the pure benzene market and poor cost support, while the styrene market had risen to a relatively high level. Spot demand was mainly driven by rigid demand, and downstream resistance to high price levels was slightly evident, resulting in a slight decline in the styrene market. As of July 19th, the transaction price of styrene in Jiangsu region was 9,510-9,550 RMB/ton.

Market outlook

Crude oil: NYMEX crude oil futures 08 contract fell 0.03 US dollars/barrel or 0.04% at 82.82 US dollars/barrel; ICE Brent Oil Futures 09 contract rose 0.03 US dollars/barrel or 0.04% to 85.11 US dollars/barrel. The main contract for Chinese INE crude oil futures, 2409, rose 6.1 RMB/barrel to 614.1 RMB/barrel, and fell 0.1 to 614 RMB/barrel in the evening session.

Crude oil prices were fluctuating in a high range, downstream equipment maintenance was frequent, procurement was weak, and port pure benzene inventories were rising. In the short term, pure benzene may continue to decline, and we are 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 pure benzene and downstream equipment dynamics and demand on the price of pure benzene.

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