Crude benzene bidding price is stable this week (2.24-2.28)

1、 Price trend:

On February 27, crude benzene commodity index was 66.27, unchanged from yesterday, down 49.73% from 131.84 (2013-01-28), the highest point in the cycle, and up 68.84% from 39.25, the lowest point on December 22, 2014. (Note: cycle refers to 2011-09-01 to now).

2、 Market analysis:

Domestic market: the bidding price of crude benzene market is stable this week, most manufacturers haven’t made major adjustment, the start-up of coking enterprises is still low, and the output of crude benzene, tar, and other by-products has declined significantly. Although the start-up of downstream hydrobenzene enterprises has gradually recovered, the crude oil and pure benzene prices have fallen sharply. The listing price of Sinopec’s pure benzene has been lowered to 5350 yuan / ton. This week, the hydrobenzene market in Shandong Province has declined slightly by about 50 yuan / ton. At present, the cost pressure of hydrobenzene enterprises is relatively high. As of Friday, the price of crude benzene in Shandong was 4120-4180 yuan / ton, up 30 yuan / ton from last week.

Industry chain: in terms of crude oil: this week, the crude oil changed the form of continuous increase last week, falling for four consecutive days, and WTI fell to the lowest point of this year. The spread of the epidemic in many countries has led to increased market worries and a pressure drop in oil prices. Brent was down 10.76% and WTI was down 11.41% compared with February 21.. Pure benzene: this week, the trading atmosphere of pure benzene was weak, crude oil and external market fell, and the support under pure benzene was insufficient. The lack of downstream shipping power and inventory accumulation further worsened the confidence of pure benzene market participants. On Wednesday, Sinopec cut the price of pure benzene by 150 yuan / ton to 5350 yuan / ton. Downstream: demand for downstream styrene is not strong, and inventory pressure is high. Friday’s price is 6700 yuan / ton, up 1.01% from last week.

3、 Trend Forecast:

Next week, oil prices will focus on the progress of epidemic control. The contradiction between supply and demand of pure benzene enterprises is prominent. The downstream enterprises of pure benzene are currently operating at a low level, so it is difficult for crude benzene market to have a good support. It is expected that the fluctuation of crude benzene market will be limited in the short term.