Crude Benzene Market Price Rising in September 2019

Price trends:

After the stabilization of the crude benzol Market in September 2019, the ex-factory price in North China increased by 14.42% at the beginning of the month at 3930 yuan/ton and at the end of the month at 4496.67 yuan/ton.

The crude benzol commodity index on September 30 was 70.42, unchanged from yesterday, down 46.59% from the cyclical peak of 131.84 points (2013-01-28), and up 79.41% from the lowest point of 39.25 on December 22, 2014. (Note: Period refers to 2011-09-01 to date).

II. Market analysis:

Domestic market: The crude benzol Market rose 14.42% monthly after this month’s turbulence. At the end of the month, the price entered a downward trend. Since mid-September, the crude benzol Market has continued to rise. During the Mid-Autumn holidays, most of the downstream products began to stock up in advance. At the same time, the external market of pure benzol continued to rise. The listed price of pure benzol of Sinopec increased 200 yuan/ton to 5750 yuan/ton again. The market sentiment was rising and the main production area tendered. Prices have risen sharply, and it is difficult to find downstream hydrobenzene from low-level sources. The manufacturers’offer has risen by 150-200 yuan/ton compared with last week. The overall start-up rate of the plant this week is about 50%. The price difference between crude benzene and hydrobenzene was reduced. The profit is reduced, so the manufacturer’s willingness to ship is low. Downstream styrene, phenol and other devices started higher, stock sentiment is strong, and then entered the consolidation of the shock channel, prices slightly declined at the end of the month, mainly affected by traffic, environmental protection and other factors during the National Day. At the end of the month, the crude benzol price in Shanxi is about 4325 yuan/ton, and that in Shandong is about 4575 yuan/ton.

Industry Chain: Crude Oil: On September 14, Saudi Arabia’s largest crude oil facility was attacked by unmanned aerial vehicles, resulting in more than 5 million barrels per day production suspension, Saudi oil output and exports were greatly affected, international oil prices jumped, rising by more than 10%. Pure benzene rose sharply from 16 to 18 days as international oil prices soared and commodity markets improved. This month, WTI oil prices rose by 1.64% compared with last month, while Brent oil prices rose by 5.75%. Pure benzene: At the beginning of the month, due to the lower inventory of pure benzene in East China, the market supply is on the low side, and the price of pure benzene has an obvious rise. Affected by the Saudi Arabian incident on the 16th, crude oil and pure benzene external market soared, driving the domestic market of pure benzene upward. This month, the total spot of pure benzene is on the low side, and the port inventory keeps falling, which supports the high price of pure benzene. At the end of the month, the impact of the Saudi Arabian incident subsided, the crude oil outer disk declined, the price gap between domestic and foreign decreased, and the high price support of pure benzene weakened. In addition, near 11, downstream environmental protection inspection, parking restrictions in some factories, pure benzene just needed insufficient, the market fell.

3. Trend forecast:

Previous crude benzene prices rose sharply, hydrogenated benzene pressure is strong, with the environmental upgrade of hydrogenated benzene business overhaul increased, the demand for crude benzene decreased, the lack of downstream support, crude benzene prices after the festival have room to fall.