Pure benzene: pure benzene market trends to 2022 and outlook to 2023

Pure benzene: pure benzene market trends to 2022 and outlook to 2023

In 2022, the domestic pure benzene market rose and then fell, with average prices higher than in previous years. In the first quarter, the market continued to release good news, international crude oil running at a high level, oil prices were once approaching seven-year highs, pure benzene foreign markets as a whole showed an upward trend, favoring the domestic pure benzene market, the main downstream styrene market rebound support, the industry is more optimistic, East China pure benzene continued to push up. After the Spring Festival, the impact of Russia-Ukraine tensions, crude oil continued to climb, East China's pure benzene market quickly chase high, but because of the lack of downstream profitability, its intention to chase high limited, downstream part of the device parking or reduce the negative operation. Into the second quarter, by crude oil and styrene prices continue to rise, East China's pure benzene market prices further pushed up, Sinopec pure benzene listing price has been raised to 10000 yuan / ton, but with the price of continuous push up, the downstream losses are more serious, some manufacturers parking negative, then, the domestic pure benzene market opened downward channel. Since the second half of the year, the domestic pure benzene market centre of gravity continued downward, the beginning of the third quarter, crude oil, phenylethylene futures fell widely, coupled with a wide range of foreign market prices weak oscillation, Sinopec pure benzene listing many times down, downstream profits continue to lose, more pressure on the purchase price, negative field mentality. Near the end of the quarter, coinciding with the Mid-Autumn Festival and the National Day holiday, the downstream actively stock up, and due to the impact of typhoons, some shipments delayed arrival, the field spot inventory to maintain a low level, pure benzene prices stopped falling higher, but the downstream resistance to high-priced sources of goods, the market price centre of gravity slightly higher. Into the fourth quarter, the National Day period, crude oil prices rose widely, favoring the pure benzene market, Sinopec listed price after the festival continuous upward, the field bullish atmosphere, the downstream active replenishment after the festival, the field offer high, with the styrene plate back down, and East China port inventory rising, traders actively give out, East China market prices followed down, near the end of the year, with some of the large domestic devices put into operation, the field Supply increased, downstream bearish sentiment, the market continues to be weak oscillation.

Looking ahead to 2023, there are more upstream and downstream production plans, but the supply of pure benzene is still less than demand, the downstream development is faster than the upstream, the time gap between supply and demand to reach production exists, the supply increase in the short term market will be affected by the negative impact, but the long term demand is still strong on the market to boost, is expected to maintain the price of pure benzene market in 2023 at a high level, the fluctuation space may have contracted, is expected to oscillate between 6000-8000 yuan / ton.