SunSirs: Brief Overview of Benzene Price Trends in August

Price trend

According to the commodity market analysis system of SunSirs, the market price of benzene in the Shandong region first fell and then rose in August, resulting in an overall increase. The price stood at 7,767.67 RMB/ton on August 1 and 8,017.67 RMB/ton on August 28, marking a 3.22% rise compared to the beginning of the month.

Market Analysis

Benzene: In August, the market price of benzene in Shandong initially fell but subsequently rose, resulting in an overall increase. Uncertainty regarding US-Iran tensions persists, and international crude oil futures closed higher. Regarding port logistics, inventories at East China ports remain low, with no significant increase in upcoming import arrivals. Independent refineries in Shandong have largely maintained stable offers, while trading activity remains cautious. Sinopec refineries in East, South, and Central China set their benzene price at 8,250 RMB/ton, effective August 21.

In August, Sinopec raised the price of benzene by 350 RMB/ton to 8,250 RMB/ton.

Market Outlook

Crude Oil Futures: International crude oil futures closed higher on August 27. The settlement price for the October contract of U.S. WTI crude oil futures was $83.53 per barrel, up $1.30 or 1.6%. The settlement price for the November contract of Brent crude oil futures was $88.52 per barrel, up $1.58 or 1.8%.

Overseas benzene: On August 27, FOB Korea prices rose by $15 to $1,006/tonne, and CFR China prices rose by $15 to $1,021/tonne. FOB Rotterdam prices fell by $29 to $1,031/tonne, and FOB USG prices dropped by 17 cents to 443 cents/gallon.

Overall Outlook: The benzene market is expected to see minor fluctuations in the near term. Market participants should continue to monitor developments regarding costs and demand. Attention should also be paid to the impact of crude oil and overseas market trends, the operational status of benzene and downstream units, and shifts in demand on benzene prices.

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