Pure benzene market hits a new high

Multiple positives such as external disk assists, demand pull, and decline in Hong Kong stocks pushed up——

　　Since May, the domestic pure benzene market has risen again after breaking away from the high platform of the past one month
.
As of May 27, the listed price of Sinopec in various places was 9,300 yuan (ton price, the same below), an increase of 8.
8% month-on-month.
The mainstream transaction price in East China has reached about 9,500 yuan.
Some domestic ports imported goods sources are equivalent to RMB cost plus freight (CFR) or even It broke the 10,000 yuan mark and hit a new high in recent years
.

　　"At present, the high level of pure benzene has risen again, mainly due to objective favorable factors such as high external disk assists, stable demand, and continuous decline in Hong Kong stocks
.
Although many downstream products are facing high cost pressure, and even some have entered a state of loss, the current high price There is some resistance, but based on the support of the current supply of imported goods and the relatively stable start of downstream enterprises, it is unlikely that the high level will fall sharply in the short term
.
" said Shao Huiwen, a senior market commentator
.

　　Outer plate high assists

　　The first-line information from the market shows that as of May 26, the Asian CFR price of pure benzene in China has reached 1,315 US dollars, which has exceeded 10,000 yuan per ton, reaching about 10,200 yuan, an increase of 12% month-on-month, which is higher than the increase in domestic pure benzene.
3.
2 percentage points, forming a strong support for the domestic market
.

　　Shao Huiwen said that pure benzene, as an important bulk organic chemical raw material product in China, its trend directly affects many chemical industry chains, and has always maintained a strong correlation with crude oil
.
Against the background of the current tense situation in Russia and Ukraine, high inflation expectations in the international economy, and the continued impact of the new crown pneumonia epidemic, crude oil has risen by 60% since the beginning of the year, while pure benzene has also risen by 30%
.
The impact of high crude oil on the future trend of pure benzene will continue, and even many products in the industrial chain will have a domino effect
.
This round of external disk assists to the domestic market should not have been fully released, and it is not ruled out that there is still a possibility of high-level compensatory gains
.

　　Demand is steadily pulling

　　According to statistics from Henan Chemical Industry Network, as of May 27, except for maleic anhydride products, the operating rate dropped to 18.
5% due to large losses, other major products in the pure benzene industry chain such as styrene, cyclohexanone, adipic acid, phenol, The comprehensive operating rates of caprolactam were 77.
5%, 73%, 62%, 83% and 70.
5% respectively, maintaining a relatively stable operating rate during the month, and the demand for raw materials was stable
.
In addition, due to the recent good market for aniline products, the operating rate has gradually increased to 47%.
In the follow-up, due to the short-term shutdown of Shandong Huatai and the start of operation on May 26, and the resumption of operation of a 100,000-ton/year plant in Nanhua, the load will be reduced.
Continue to improve
.

　　According to Wei Jianyang, general manager of Nanjing Kaiyan Chemical Co.
, Ltd.
, the operating rates of several major downstream products of pure benzene, such as styrene, cyclohexanone, phenol, and caprolactam, are very stable, and the demand for these products occupies the total demand for pure benzene.
The proportion of more than 80% is the main source of power to drive the pure benzene market, and it is also an important factor supporting the high market
.

　　Hong Kong stocks continue to decline

　　According to reports from Jiangsu importers and exporters, as of May 24, the inventory of pure benzene in Jiangsu was 85,600 tons, down 134% from the beginning of February.
The impact of uncertain factors such as the epidemic is also showing a downward trend
.
In addition, it is also difficult to continue to enter the source of imported goods due to the high price of external disks.
On the contrary, if the domestic price is lower than the import price, the arbitrage window will open, which does not rule out the possibility of export, but will exacerbate the domestic supply gap
.

　　"The recent depreciation of domestic and international currencies is also one of the driving factors for raising the price of chemical products.
At the same time, due to the impact of the domestic epidemic, transportation costs are also increasing
.
In addition, the international situation, inflation factors, epidemics and other uncontrollable factors such as If it cannot be effectively controlled or alleviated, the bulk chemical raw materials that play an important role in the industrial chain will be difficult to fall back in the short term
.
" said Li Bing, a trader from Henan
.

　　Market participants said that pure benzene, as a bulk organic chemical product with strong linkage with crude oil, is a normal reaction to run to the current high level.
Compared with the increase in crude oil over the same period, it is still far lower than the increase in crude oil
.
Therefore, based on the current status of market transactions, market supply and demand are still in a balanced state.
As long as there is no shrinking downstream demand, the international situation eases, crude oil falls sharply, and the external market falls, the current high state can continue
.