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Downstream trading sentiment remains positive, cracked C9 continues its upward trend (August 2026)

Published on 2026-08-28
  1. Highlights of the Month
  • The U.S. stepped up sanctions against Iran; mediators pushed for U.S.-Iran talks, and the two sides broadly reached a ceasefire consensus. However, the U.S. refused to re-sign the memorandum, so bilateral relations remain uncertain.
  • In August, cracked C9 continued to rise, with gains of RMB 500-600/ton. The mainstream market price was in the range of RMB 5,050-5,300/ton.
  • Profits for industrial aromatic solvent and C9 petroleum resin continued to decline slightly.
  1. Market Analysis of Industrial Cracked C9 in August

In August, the domestic cracked C9 market showed a sharp unilateral upward trend, with the monthly average price significantly higher than in July. At the beginning of the month, geopolitical tensions in the Middle East escalated again, and Brent crude oil trended upward, strengthening cost-side support. Combined with released demand for gasoline barge orders, industrial aromatic solvent players actively replenished stocks, pushing cracked C9 into an upward channel. As geopolitical risks continued to ferment through the month, weekly crude oil gains widened, and the pace of cracked C9 increases accelerated. Refineries were strongly inclined to hold prices firm and push them upward. Toward month-end, news of U.S.-Iran peace talks emerged, prompting a temporary pullback in crude oil, but gasoline fundamentals remained robust, leaving limited room for cracked C9 to correct lower. Downstream C9 hot-polymerized petroleum resin followed feedstock costs higher, showing a rise-fall-rise pattern over the month, with the monthly average price up month on month. Resin producers' capacity utilization first rose and then fell, but the overall operating rate was higher than in July. Continued feedstock increases drove resin prices upward, but growing end-user resistance to high-priced materials visibly limited the extent of resin gains. The market this month was strongly lifted by geopolitical-driven crude oil costs. Downstream just-in-time demand followed but could not fully pass through costs. Overall, the market moved significantly higher, though impaired downstream profitability capped the upward momentum. Looking ahead, cracked C9 is expected to remain firm, with feedstock costs and downstream demand recovery continuing to contend.

Core Price Table for Domestic Industrial Cracked C9

Unit: RMB/ton

Product Region/Grade Current Period Previous Period Change Change % Next Period Forecast
Crude Oil Brent 87.88 83.97 +3.91 +4.66% 84.00
Cracked C9 National 4802 4247 +555 +13.07% 5300
Industrial Aromatic Solvent National 6145 5570 +575 +10.32% 6300
C9 Petroleum Resin National 6087 5568 +519 +9.32% 6300
Refined Dicyclopentadiene National 8763 9064 -301 -3.32% 9000

Source: Chempricehub

  1. Downstream Market Analysis of Industrial Cracked C9

In August, the monthly average price of cracked C9 feedstock rose month on month, providing underlying support for resin prices. Hot-polymerized petroleum resin showed a rise-fall-rise trend during the month. Overall, the monthly average market price of C9 hot-polymerized petroleum resin rose month on month. As of the time of writing, mainstream market prices for grades 9-11# were RMB 6,150-6,400/ton, while grades 16-18# were priced at RMB 3,900-4,800/ton. During the month, resin producers' capacity utilization first increased and then decreased, with the overall utilization rate higher than in July. In the middle and latter part of the month, feedstock prices began to climb, and resin prices followed upward, though gains were constrained by downstream demand and rising end-user resistance to high-priced resources. Looking at September, cracked C9 feedstock is expected to remain firm. On the supply side, Liaoning Yufu has shipping plans, and resin producers' operating loads may rise in September. Overall, the mainstream C9 hot-polymerized petroleum resin market is expected to remain firm. Attention still needs to be paid to feedstock price trends and downstream demand recovery.

In August, the average price of domestic industrial aromatic solvent increased. As of August 28, 2026, prices were RMB 5,950-6,750/ton in East and South China and RMB 6,800-6,900/ton in North and Northeast China. Entering August, geopolitical conflicts intensified again, and crude oil futures rose for 12 consecutive trading days. Meanwhile, gasoline barge order demand increased notably in July and August, with gasoline exports in August reaching about 600,000 tons. This spurred downstream players to actively replenish stocks. On-market transactions were active, plants repeatedly raised prices, and auction premiums were evident. Although rumors of eased geopolitical conflict resurfaced near month-end and crude oil fell for three consecutive trading days, gasoline remained relatively firm, and the monthly average ultimately closed higher.

  1. Market Forecast for Next Month

The cracked C9 market is expected to remain firm and range-bound, with limited room for higher transaction center movement. International crude oil futures carry bearish expectations, and crude prices face a pullback risk amid progress in geopolitical peace talks, meaning cost-side support will gradually weaken. Downstream, in the C9 petroleum resin segment, Liaoning Yufu has a shipping schedule, so industry operating loads are expected to increase, but end users are cautious in purchasing. Industrial aromatic solvent relies on demand from gasoline barge orders, supported by the traditional "golden September and silver October" peak season. The market is expected to follow gasoline, strengthening first and weakening later. Just-in-time demand is acceptable, but the willingness to stock up on a large scale remains insufficient, resulting in a differentiated demand pattern. Overall, downstream just-in-time demand still exists, but enthusiasm for proactive inventory building is limited. Supply-side pressure continues to emerge as previously overhauled ethylene units gradually resume operations, pushing industry operating rates slightly higher and steadily increasing feedstock supply. In conclusion, just-in-time demand support will contend with rising supply, while potential weakness on the cost side will curb upside room. Prices are expected to remain firm and range-bound, with an expected movement of RMB 100-200/ton and the mainstream transaction range likely at RMB 5,250-5,500/ton.

For more monthly market analyses, please refer to the Industrial Cracked C9 Monthly Report from Chempricehub.

Comments

0
  • Yuki Tanaka 2026-09-08 10:22
    Geopolitical crude gains are lifting cracked C9 feedstock costs, but downstream resin margins stay squeezed. I expect supply pressure to cap September’s upside despite the current positive trading sentiment.
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