① With the restart of certain units, the operating rate for hydrogenated benzene increased by 1.82% this week to 59.42%.
② Profit margins for hydrogenated benzene in Shandong decreased this week to -83 RMB/ton.
③ Sinopec East China’s listed price for pure benzene remained stable at 9,900 RMB/ton.
| Product | Region/Category | Sep 17 | Sep 11 | Change | % Change | Unit |
|---|---|---|---|---|---|---|
| Hydrogenated Benzene | Shandong | 9500 | 9415 | 85 | 0.90% | RMB/ton |
| Hebei | 9600 | 9300 | 300 | 3.23% | RMB/ton | |
| Shanxi | 9525 | 9250 | 275 | 2.97% | RMB/ton | |
| East China | 9775 | 9725 | 50 | 0.51% | RMB/ton |
Data Source: Chempricehub Information
Hydrogenated benzene prices in Shandong exhibited a "rise-then-fall" trend this week, with weekly closing prices still higher than last week's. The mainstream transaction range was 9,230–9,600 RMB/ton. Early in the week, the disruption of Saudi crude oil pipelines and continued Houthi armed attacks heightened supply risks, pushing international crude oil prices up on the trading boards. Coupled with chemical inventories remaining at year-to-date lows, market sentiment improved, driving up spot prices for domestic pure benzene and hydrogenated benzene. In the latter half of the week, oil-producing countries in the Persian Gulf signaled easing tensions, while the Federal Reserve’s first rate hike in three years exerted downward pressure on crude oil. Commodity futures plunged collectively; pure benzene and styrene hit their daily lower limits on the trading boards, causing East China pure benzene spot prices to drop significantly. Domestic hydrogenated benzene prices subsequently corrected from high levels. Overall, the market's upward movement was primarily supported by cost factors and low inventories, while the decline in the second half of the week was driven by weakening crude oil prices and macroeconomic sentiment, resulting in a peak-and-reversal pattern.
The domestic hydrogenated benzene market is expected to experience a slight correction from high levels next week, with a reference mainstream transaction range of 8,700–9,300 RMB/ton.
Crude Oil: Uncertainty remains regarding the Middle East situation. While the medium-term upward structure of crude oil has not been broken, short-term momentum has weakened following consecutive adjustments, suggesting oil prices may retreat from highs. If geopolitical tensions escalate again, crude oil could resume its uptrend.
Supply: Domestic refineries are facing significant pressure from raw material inventories, potentially leading to reduced loads. Market expectations for lower pure benzene supply in October are rising. Losses for hydrogenated benzene producers have widened, prompting some units to reduce loads or plan shutdowns, thereby shrinking supply expectations simultaneously.
Demand: Sporadic planned shutdowns of styrene and aniline units will slightly reduce demand for pure benzene. However, with the Mid-Autumn Festival and National Day holidays approaching, downstream raw material inventories remain low. As profits for some downstream sectors recover, rigid demand procurement continues to provide support.
Inventory: Low port inventories of pure benzene in East China offer certain bottom-level support for both pure benzene and hydrogenated benzene prices.
In summary, while crude oil faces short-term pressure to correct from highs, expectations of supply contraction and pre-holiday rigid demand continue to provide support. Amidst the tug-of-war between bullish and bearish factors, hydrogenated benzene prices are expected to see a slight correction from high levels next week. Key focus areas include crude oil trends, geopolitical developments, pure benzene inventories, and changes in downstream unit operations.
For more detailed weekly market analysis, please refer to the Chempricehub Information Weekly Report on Hydrogenated Benzene.
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