Introduction: As of April 2, the price of 92# gasoline stands at 9,176 yuan per ton, down by 197 yuan per ton month-on-month, a decrease of 2.10%. The decline in gasoline prices has led to a lack of upward momentum for industrial aromatic solvents in the domestic market, putting downward pressure on their prices.

Since the onset of geopolitical conflicts, international crude oil prices have surged significantly due to factors such as geopolitical tensions and OPEC+ production cut expectations. This has, to some extent, increased refining costs for processing plants, supporting a rapid rise in refined oil product prices. Gasoline prices rose from 8,568 yuan per ton to 9,633 yuan per ton, an increase of 12.4%. By the end of the month, international crude oil prices remained high and volatile. However, the increase in refined oil product prices had far exceeded that of crude oil, moving beyond a reasonable range. High prices have somewhat dampened downstream procurement sentiment, leading to declines in both gasoline and diesel prices. The shift from rising to falling gasoline prices has made it difficult to sustain the prices of industrial aromatic solvents. In the East China region, prices have retreated from a previous high of 7,150 yuan per ton to 6,200 yuan per ton, a drop of 950 yuan per ton, or approximately 13.28%.

From a cost perspective, recent influences from international crude oil have continuously increased the cost of domestic ethylene cracking, leading to reduced operating rates at several domestic ethylene cracking units. This has significantly raised the production costs of industrial aromatic solvents, with factory production margins falling into negative territory by over 1,000 yuan per ton. In the near future, additional domestic industrial aromatic solvent units are planned for shutdown and maintenance, which will noticeably reduce the supply of goods in the market in the short term, providing some support for prices.

Looking ahead:

Cost Side: International crude oil prices are still expected to rise, providing strong cost support for industrial aromatic solvents.

Demand Side: With the arrival of the Qingming holiday, increased travel by residents will accelerate gasoline consumption, offering some demand support for industrial aromatic solvents.

In summary, coupled with the anticipated increase in factory production cuts and sustained cost support, the price fluctuations of industrial aromatic solvents are expected to be less pronounced than those of gasoline, with the possibility of a phased bottoming out.