According to the data from the business associations’list, the prices of domestic pure benzene enterprises have risen in general this week by 100-250 yuan/ton. This week, the highest price of pure benzene appeared on Friday, with the price between 4580-4650 yuan/ton, an increase of about 2% compared with last week.
II. Analytical Review
1. Products: Supported by downstream styrene interest this week, various pure benzene enterprises began to raise prices at the beginning of the week. Towards the weekend, the mentality of the pure benzene market has fallen, but the factory is still dominated by a high price mentality, and the low price supply is difficult to find.
2. Crude Oil: This week’s oil price shocks rose, a larger increase than last week’s overall, WTI oil prices rose by more than 8%. In the wake of this week’s oil price shocks due to two major factors, oversupply and tension in the Middle East, news came near the weekend that the Federal Reserve had indicated that interest rates would be cut and geopolitical tensions in the Middle East escalated, with oil prices rising rapidly.
3. Downstream: Downstream styrene rebounded strongly last week. It is expected that the short-term start-up load will remain high, forming a favorable support for pure benzene.
4. Outside market: This week, the price of Asian pure benzene fluctuated with the oil price. Near the weekend, the price of the outside market rose, and the price gap between domestic and foreign markets widened, which supported the price of domestic pure benzene.
III. Future Market Forecast
1. Crude oil: Next week, the U.S. -Iraq issue will continue to affect oil prices, and the Fed’s interest rate cut will support the continued upward movement of international oil prices.
2. Domestic market: Oil price or continue to rise, will increase under cost pressure.
3. Outer plate: mainly affected by the price of crude oil, will continue to follow the changes in oil prices.
Considering comprehensively, the price of pure benzene will increase slightly next week.