Price Trend

According to the data of business associations, the market price of aniline in Nanjing this week dropped 600 yuan/ton from last week, a drop of 9.23% compared with last week, while that in Shandong fell 230 yuan/ton from last week, a drop of 3.97%. The mainstream price in Shandong is 5570 yuan/ton, while that in Nanjing is 5900 yuan/ton.

II. Analytical Review

Raw material: Following last week’s weak market for pure benzene, this week, Sinochem’s pure benzene enterprises continued to reduce the price of pure benzene. Sinopec continued to bid at a high price of 5350 yuan per ton. Pure benzene port inventory continued to decline this week, but the downstream demand for pure benzene was insufficient to follow up, and market participants mostly held a wait-and-see attitude. Combined with the low price impact of hydrobenzene, the pure benzene in East China began to fall in the second half of the week, which exacerbated the price gap between Sinopec’s listed price and the spot price in East China.

Product: Benzene market weakened this week, aniline lost cost support. Moreover, the downstream demand is weak, the follow-up to aniline is insufficient, and the price of aniline has fallen sharply, with aniline falling by more than 9% in eastern China.

III. Future Market Expectations

At present, domestic demand for pure benzene is weak, and pure benzene is facing shipment pressure. In addition, the sudden drop in crude oil has created a negative stimulus to the mentality of the bulk market, and pure benzene is still expected to decline.

The hot weather, low start-up rate of downstream auxiliaries and dyes, weak demand for aniline and lack of support for the price of aniline. Aniline is expected to run weakly next week.