Hydrogenated Benzene Prices Continue to Rise at High Levels

1. Today's Summary

① Sinopec East China pure benzene posted price increased by 300 RMB, currently at 10,200 RMB/ton.

② Today, Shandong non-contract (spot) transactions for pure benzene totaled approximately 2,400 tons. Self-pickup prices ranged from 9,903 to 9,973 RMB/ton, with an average of 9,938 RMB/ton, up 27 RMB/ton from the previous business day.

③ Today, East China pure benzene spot negotiations occurred in the range of 10,900–11,750 RMB/ton, with an average of 11,325 RMB/ton, up 815 RMB/ton from the previous business day.

④ On September 28, total commercial inventory of pure benzene at Jiangsu ports sampled was 61,000 tons, an increase of 17,000 tons from the previous period's inventory of 44,000 tons.

2. Spot Market Overview

Table 1: Domestic Hydrogenated Benzene Price Summary (Unit: RMB/ton)

Based on the Shandong region as a benchmark, prices in Lubei and Luxinan rose today. Main production area prices climbed to 9,950 RMB/ton, while local refinery prices remained stable at 9,900–9,970 RMB/ton. In the afternoon, major refineries raised their posted prices by 300 RMB. Currently, the price spread between North and South remains wide. Most hydrogenated benzene producers have already released their National Day holiday production volumes in advance and are awaiting further market guidance. The delivered price reference for Jiangsu hydrogenated benzene is 10,050–10,100 RMB/ton.

3. Production Dynamics

On September 24, the operating rate for hydrogenated benzene decreased by 3.18 percentage points to 56.24%. Weekly output of hydrogenated benzene was 74,600 tons, a week-on-week decrease of 4,200 tons. This week, profits for Shandong hydrogenated benzene enterprises continued to run at a loss, standing at -70 RMB/ton.

4. Price Forecast

Today, the domestic hydrogenated benzene market continued to rise. It was the final delivery day for East China pure benzene futures, triggering a significant short squeeze that drove prices sharply higher. While the widening North-South price spread provides bullish momentum for Northern pure benzene and hydrogenated benzene, these markets struggle to match the magnitude of the East China rally. Tomorrow marks the last business day before the National Day holiday; it is expected that the hydrogenated benzene market will gradually transition into a state where quoted prices exist but actual transactions are scarce.

5. Related Product Status

Pure Benzene Market: Far-term spot deliveries in East China encountered a short squeeze, pushing the market center temporarily up to 11,800 RMB/ton. However, due to it being the final trading day, arbitrage opportunities for Shandong supplies were limited. Consequently, the Shandong market saw only a narrow increase compared to yesterday, maintaining a wide price gap with East China.

6. Data Calendar

Table 2: Domestic Hydrogenated Benzene Data Overview (Unit: RMB/ton, 10,000 tons)