According to the Commodity Market Analysis System of the Business Society, from July 10 to July 17, 2023, the auction price of crude benzene increased from 5631.25 yuan/ton last weekend to 5938.75 yuan/ton this weekend, with a weekly increase of 5.46%.

Crude oil: supported by positive factors in the international oil market, on the one hand, the OPEC and its allies (OPEC+) cut production, increasing supply concerns, Saudi Arabia and Russia announced new production reduction measures, and the Saudi Energy Ministry announced that it would extend the policy of an additional 1 million barrels/day production reduction in July to August; The Russian Ministry of Energy has also confirmed a reduction of 500000 barrels per day in oil exports in August, bringing the total production reduction of the OPEC+alliance to approximately 5 million barrels per day, accounting for approximately 5% of global oil demand. On the other hand, the United States Department of Energy’s plan to replenish the strategic oil reserve also warmed up the oil market. On July 7, the US announced that it would purchase an additional 6 million barrels of crude oil to replenish the strategic oil reserve. The procurement plan will be carried out in October and November. Finally, the US dollar strengthened, Asian demand growth boosted international oil prices, supported by demand in the summer peak oil season, and the Energy Information Administration (EIA) data report on Wednesday showed a rapid decline in crude oil inventories. Multiple positive factors support the upward trend of international oil prices.

As of July 13th, the settlement price of the main contract for WTI crude oil futures in the United States was $76.89 per barrel, an increase of $1.14 or 1.5%. The settlement price of the main contract for Brent crude oil futures was $81.36 per barrel, an increase of $1.25 or 1.6%. Inflation in the United States has cooled beyond expectations, the necessity for the Federal Reserve to raise interest rates has decreased, coupled with seasonal peak demand from refineries and OPEC production cuts in oil producing countries, heating up the oil market.

The ex factory price of Sinopec pure benzene increased by 300 yuan/ton from July 10th to July 17th, 2023, with a current implementation of 6600 yuan/ton.

Other companies: Jingbo Petrochemical quoted 7100 yuan/ton, HSBC Petrochemical quoted 6600 yuan/ton, Weilian Chemical quoted 6853 yuan/ton, Xinhai Petrochemical quoted 7000 yuan/ton, and Hongrun Petrochemical quoted 6600 yuan/ton.

According to the Commodity Market Analysis System of Business Society, the price of pure benzene has slightly increased this week. On July 10th, the price of pure benzene was 6378 yuan/ton, and on Friday (July 14th), the price of pure benzene was 6396 yuan/ton, an increase of 2.17% compared to last week and a decrease of 29.77% compared to the same period last year

The K-bar chart of commodity prices uses the concept of a price trend K-line to reflect weekly or monthly price fluctuations in the form of a bar chart. Investors can buy and sell investments based on the changes in the K-bar chart. Red indicates an increase; Green indicates a decline; The height of the K-bar represents the range of fluctuations. The weekly K-bar chart of pure benzene shows that the pure benzene market has seen a positive trend in recent times. After ten consecutive weeks of decline, it has risen by 4.78% this week.

In terms of industrial chain, both international crude oil and styrene markets strengthened during the cycle, driving the pure benzene market with a 4.78% increase during the week. Sinopec has raised the listing price of pure benzene twice in a row to 6600 yuan/ton, with a cumulative increase of 400 yuan/ton, once again boosting the market mentality of the industrial chain, and the prices of industrial chain commodities have generally increased.

During this cycle, the auction price of crude benzene has collectively strengthened, with prices ranging from 6010 to 6015 yuan/ton in Shandong region, an increase of 330 yuan/ton. The Shanxi region implemented a price increase of RMB 5850-5910 per ton, with an increase of RMB 250-260 per ton, resulting in a narrowing of the price difference in the main domestic production areas. In terms of supply, the operating rate of coking enterprises this week is still around 75%, and the supply of crude benzene has not changed much compared to the previous period, with supply slightly tight. In terms of demand, recent hydrogenation benzene enterprises have slightly reduced their operations, and demand has slightly declined. The price of hydrogenation benzene in the main production areas was between 6400 and 6450 yuan/ton during the week, with an increase of 200 to 250 yuan/ton. The demand for crude benzene is still acceptable. Overall, the strengthening of crude oil and styrene has driven the market mentality of the industrial chain, and the overall strength of the industrial chain this week. There is still an upward expectation in the future industrial chain, and it is expected that the market will remain stable with a strong trend, with little room for growth.