Weak downstream procurement, weak price of pure benzene before the festival (September 21 – September 27, 2020)

1、 Price trend

 

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According to the business club’s big list data, the price of pure benzene in Shandong Province fell overall this week. On September 20, the listed price of pure benzene was 3130-3450 yuan / ton (the average price was 3390 yuan / ton); this Sunday (September 27), the listed price of pure benzene was 3000-3450 yuan / ton (average price 3400 yuan / ton), an increase of 0.29% compared with last week.

 

2、 Analysis and comment

 

Northern lower reaches of the stock up to a paragraph, this week, Shandong market trading light. Pure benzene enterprise festival inventory, cut prices, this week the market in Shandong weakened again.

 

In terms of external trading, on Friday (September 25), South Korea imported 419.67 US dollars / ton of pure benzene, down 17 US dollars / ton, or 3.89% compared with September 18; and that of East China was 425 US dollars / ton, down 12 US dollars / ton, or 2.75% compared with September 18.

 

Crude oil, this week’s high oil prices fell, Libya’s oil fields and port blockade lifted, the market’s concern about excessive supply of crude oil increased. Compared with September 18, Brent fell $1.05 per barrel, or 2.47%, while WTI fell $1.39 per barrel, or 3.36%. Compared with December 31, 2019, Brent decreased by 37.93%, and WTI decreased by 34.29%.

 

Downstream: domestic styrene market is running horizontally. The price of styrene decreased by 50.92 yuan / ton in Shandong on the day of last week.

 

Before the festival, downstream purchasing enthusiasm is good, enterprise shipment is smooth, inventory is low, and the price goes up. On September 27, the price of aniline in Shandong was 5000-5200 yuan / ton, and that in Nanjing was 5200-5300 yuan / ton.

 

3、 Future forecast

 

In terms of crude oil, oil prices are under great pressure. The lifting of the blockade in Libya has wrongly boosted the supply of crude oil market. In addition, public health events continue to affect the market, and the market has become more worried about the supply and demand of crude oil. Oil prices are expected to have downside risks next week.

 

At present, the demand for pure benzene in the downstream is not strong. In addition, the domestic hydrobenzene shutdown and maintenance devices are gradually restored, which is expected to have an impact on the pure benzene market. It is expected that benzene will maintain weak operation before the festival.

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