Price trends:

The crude benzol commodity index on August 23 was 61.07, unchanged from yesterday, down 53.68% from the cyclical peak of 131.84 points (2013-01-28), and up 55.59% from the lowest point of 39.25 on December 22, 2014. (Note: Period refers to 2011-09-01 to date).

II. Market analysis:

This week (8.19-8.23) the domestic crude benzol Market rose sharply. The average domestic market price was 3616.67 yuan/ton at the beginning of the week and 3 900 yuan/ton at the end of the week, up by 7.83%.

Domestic market: This week’s market positive factors are concentrated, pure benzene external market has risen continuously, downstream profits have gradually increased, bringing benefits to the crude benzene market. As of Friday, prices in Shandong, Shanxi and other major markets have risen to about 4100 yuan/ton, up 500-550 yuan/ton from last week. Demand: downstream hydrobenzene manufacturers are actively starting work. With the increase of the price gap with crude benzene, profits are highlighted. The hydrobenzene market will be in September with active stock and good turnover. Supply side: coking enterprises started relatively stable in the near future, at about 70%, the pressure of environmental protection is still high near National Day, coking enterprises start rate is difficult to rise, crude benzene supply will still be tight.

Industry Chain: Crude Oil: International oil prices rose first and then fell this week. Overall, compared with last Friday, Brent rose by 2.9%, WTI rose by 1.62%. Oil prices rose as global stock markets rebounded and geopolitical tensions intensified. Oil prices stopped rising and fell because of uncertainty about the Fed’s interest rate cut prospects. Pure benzene: At the beginning of the week, due to the supply gap of pure benzene in the United States, pure benzene in Korea was arbitraged to the United States. The high price of pure benzene in the U.S. dollar plate supported the rise of domestic pure benzene price. On Thursday, the supply of pure benzene in eastern China was tight. Pure benzene companies in Shandong sent their supplies to Eastern China, and the prices of refined pure benzene in Shandong rose.

3. Trend forecast:

Pure benzene external market continues to rise, the market is still expected to rise in Sinopec’s listed price, the market atmosphere is good, crude benzene and pure benzene are relatively stable, it is expected that the future crude benzene market will be dominated by high volatility, if there is downstream demand support, there is still room for future market growth.