Market sentiment weakens as hydrogenated benzene prices retreat from highs

1. Today's Summary

① Sinopec East China benzene posted price remains stable at 9,600 RMB/ton.

② Today, non-contract spot transactions for benzene in Shandong totaled approximately 1,400 tons. Ex-works prices ranged from 9,750 to 9,753 RMB/ton, with an average of 9,751 RMB/ton, down 60 RMB/ton from the previous business day.

③ Spot negotiations for benzene in East China took place between 9,820 and 10,060 RMB/ton today, averaging 9,940 RMB/ton, up 90 RMB/ton from the previous business day.

④ As of September 21, total commercial inventory of benzene at Jiangsu ports (sample basis) stood at 44,000 tons, an increase of 6,000 tons from the previous period's 38,000 tons.

2. Spot Market Overview

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

Based on the Shandong region, prices in Lubei remained stable today, while prices in Southwest Shandong declined. In main production areas, prices dropped further to 9,500 RMB/ton in the afternoon. Independent refineries traded around 9,750 RMB/ton. Inventory levels fluctuated at high points. The market center in main production areas and independent refineries showed weak stability, with trading activity slowing down. Afternoon transaction prices for hydrogenated benzene continued to fall. Reference delivered prices for hydrogenated benzene in Jiangsu were 9,600–9,800 RMB/ton.

3. Production Dynamics

On September 17, the operating rate for hydrogenated benzene rose by 1.82 percentage points to 59.42%. Weekly output of hydrogenated benzene was 78,800 tons, a week-on-week increase of 2,400 tons. This week, profits for hydrogenated benzene producers in Shandong decreased, standing at -83 RMB/ton.

4. Price Forecast

Today, the domestic hydrogenated benzene market pulled back from recent highs. Crude oil performance was poor, and benzene futures declined, weakening market sentiment. Spot prices for both pure benzene and hydrogenated benzene in China came under pressure and fell. Hydrogenated benzene plants sold two weeks' worth of supply ahead of the holiday, leading to lower intraday new order prices. As plants complete their pre-holiday sales orders, prices are expected to gradually stabilize.

5. Related Products

Pure Benzene Market: Influenced by potential easing of tensions in the Middle East, crude oil prices retreated, and market bullishness weakened. Independent refineries in Shandong only achieved deals at floor prices, with multiple auctions failing due to lack of bids. Overall market activity was sluggish.

6. Data Calendar

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