1、 Price trend

According to the data of the business club’s large scale list, the price of pure benzene on June 7 was 3550-3850 yuan / ton (average price 3660 yuan / ton); the price of pure benzene on Sunday (June 14) was 3700-3850 yuan / ton (average price 3750 yuan / ton), up 90 yuan / ton, or 2.46% from last week.

2、 Analysis and comment

This week, Sinopec adjusted the price of pure benzene to 200 yuan / ton, reducing the price gap between the inside and the outside, and strengthening the market bottom. This week, pure benzene port inventory still rose, but the increase decreased. In the week, the price of pure benzene strengthened, but the downstream market was weak, and the actual market turnover was weak.

On Friday (June 12), South Korea imported 426.33 US dollars / ton of pure benzene, down 3 US dollars / ton, or 0.7% from June 5; East China imported 440 US dollars / ton of pure benzene, up 5 US dollars / ton, or 1.15% from June 5. This week’s outside market is lack of good, support is weak.

OPEC and its production reduction allies will extend the current production reduction agreement for one month to improve oil prices. But the impact of public health events in the United States increased, offsetting the positive effects of production cuts, and the international oil price fell sharply this week. Brent fell $2.36, or 5.76%, this week from June 5, while WTI fell $3.29, or 8.27%. Compared with December 31, 2019, Brent decreased by 42.13% and WTI by 39.92%

Downstream, styrene market prices fell slightly this week. In the short term, it is difficult to change the situation of oversupply. In addition, the main stock is high, and styrene is weak. On June 12, the price of styrene in Shandong Province was 5550 yuan / ton, down 33.33 yuan / ton, or 0.6% from last week.

Aniline inventory released, the price slightly increased by 100 yuan / ton. On June 12, the price of aniline was 4500-4590 yuan / ton in Shandong and 4600-4820 yuan / ton in Nanjing.

3、 Future forecast

Next week, the crude oil market will continue to focus on production reduction and public health events. Styrene, the downstream with the largest demand for pure benzene, was negative news. There are still more ships arriving at the port next week. Styrene rose weakly, and the pure benzene industry mentality weakened. It is expected that the trend of pure benzene will slightly decrease.