Price Trend

According to the business association’s large list data, this week, the price of pure benzene of Sinopec’s enterprises was stable, the price of Sinopec and some refineries increased, and the price gap between Sinopec and Sinopec decreased. This week, the domestic price of pure benzene (except Sinopec) increased by about 150 yuan/ton compared with last week. This week, the highest price of pure benzene appeared on Friday (Aug. 16). The price was between 4900 and 5100 yuan/ton, up 0.75%.

II. Analytical Review

1. Products: This week, the inventory of pure benzene port decreased by about 0.5 million tons compared with last week, and the domestic inventory of pure benzene is also declining. There is no pressure on pure benzene inventory.

2. Crude Oil: Earlier this week, Saudi Arabia took action to prevent oil prices from falling, and the United States deferred tariff increases on some products to December, boosting the market and boosting international oil prices. In the latter half of the week, fears of a possible intensification of the trade war reignited, and fears of a slowdown in crude oil demand deepened. Oil prices stopped rising and fell. The positive and negative factors offset each other. This week’s WTI and Brent oil prices were basically flat compared with last week’s.

3. Relevant industries: This week, affected by typhoon, the price of hydrobenzene has risen, and the low-price supply is hard to find, which will benefit the pure benzene market. Downstream styrene rose by 1.2% from last week, which also supports the price of pure benzene.

4. External offer: Although Asian foreign offer is short of quotation guidance due to closure at the beginning of this week, the price of pure benzol US dollar has risen, and the US-ROK arbitrage window has opened, which has formed a favorable support for the domestic market.

3. Future Market Forecast

1. Crude oil: The trend of crude oil in the later period is still uncertain, mainly related to the situation of trade war and crude oil demand.

2. Domestic market: Pure benzene downstream demand is weak, but Sinopec pure benzene inventory is low, price is strong, has certain support for the domestic market.

3. External Disc: With the successive arrival of goods from the United States, prices will fall, but the price gap between Asia and the United States still exists. The main purpose of Korea’s export resources is still the United States. China’s import resources are still relatively small, and the supply and demand side has not been improved.

Taking into account, the price of pure benzene is expected to rise slightly next week.