From September 7 to September 11, 2020, the crude benzene market price will be slightly adjusted. The factory price in North China will be 2473.75 yuan / ton at the beginning of the week and 2437.50 yuan / ton at the weekend, with a weekly decrease of 1.47%.

Since August 14, 2020, the price of pure benzene of Qilu Petrochemical (Sinopec North China) has been reduced by 100 yuan / ton, and 3300 yuan / ton has been implemented as of September 11,.

Although it is near October recently, the environmental protection policy is relatively loose this year. Coking enterprises have been operating at a high level, crude benzene supply is sufficient, and coking enterprises are mainly active in shipping. On September 8, the U.S. WTI crude oil futures market prices plummeted, with the settlement price of main contracts at $36.76/barrel, down $3.01. The international crude oil market is mainly downward this week. In terms of pure benzene, the external market fluctuated lower this week, and the market confidence was weak. This week, the operating rate of pure benzene was about 7.50%, which was roughly the same as last week. Sinopec’s price remained stable, and the operating rate of hydrogenated benzene this week was slightly higher than that of last week, which is expected to be about 6.50%. In terms of inventory, the inventory of pure benzene in East China this week was higher than that of last week, and the overall inventory was still on the high side, about 270000 tons. Affected by lower crude oil prices this week, the market is expected to increase supply in the later period, leading to traders’ bearish outlook on the future market and price reduction. Affected by the weak basic market, the bidding price of crude benzol was slightly reduced this week, and the implementation of 2435-2450 yuan / ton in Shandong Province this week.

Start up of some hydrogenated benzene units in September 2020

Enterprise name device status device capacity remarks

Shandong Shengyun chemical shutdown 100000 tons, restart time to be determined

Ma’anshan Iron and steel policy of 80000 tons restarted on September 1

The parking capacity of Shandong Jinneng Chemical Co., Ltd. is 100000 tons to be determined

Shandong Derun parking 150000 tons to be determined

In terms of downstream demand, the recent cost pressure of hydrogenated benzene remains unchanged. With the price of pure benzene going down, the price pressure of hydrogenated benzene to crude benzene is still large. Some units have been restarted, but some units continue to delay restart.

In terms of aftermarket, the business club believes that the cost pressure of downstream hydrobenzene enterprises is still large, the market fundamentals of pure benzene are weak, the volatility of crude oil price is not good enough, the downstream market of pure benzene is under pressure, and the crude benzene market is expected to stabilize temporarily in the short term.