SunSirs: Hydrogenated Benzene Market Was Down This Week (August 2-6)

　　Price trend

　　The hydrogenated benzene commodity index was 87.86 on August 7, which was the same as previous day. It was a decrease of 13.87% from the highest point in the cycle of 102.01 points (2014-01-09), and an increase of 192.96% from the lowest point of 29.99 points on April 7, 2020. (Note: Period refers to 2013-12-01 to present)

　　This week (August 2 to August 6) the market price of hydrogenated benzene in Shandong declined, starting at 7,925 RMB/ton at the beginning of the week, and at 7,425 RMB/ton on weekends, down 500 RMB/ton.

　　Analysis review

　　On August 4, 2021, the listing price of Sinopec’s pure benzene was lowered by 200 RMB/ton, and the current implementation is 7,700 RMB/ton, of which Qilu Petrochemical implement 7,650 RMB/ton.

　　Crude oil and pure benzene continued to decline this week. Under the influence of negative factors such as the increase in US crude oil inventories, fundamentals were negative. The downstream sector continued to lose money recently, which led to an increase in corporate overhauls and the purchases mainly based on demand. The demand for benzene declined. With the introduction of the crude benzene bidding price this week, the Shandong area implemented 6,000-6,005 RMB/ton, which was 250 RMB/ton lower than last week’s bidding price, further suppressing market sentiment.

　　Market outlook

　　In the market outlook, SunSirs believes that the increase in crude oil production and inventories will continue to suppress crude oil prices. It is expected that crude oil prices will fluctuate mainly in the short term, and it is difficult to form obvious support for the industrial chain. Downstream styrene and other industries will mainly fluctuate weakly, and fundamentals are hard to find. It is expected that in the short term, the hydrogenated benzene industry chain will fluctuate weakly mainly.