I. price trend:

On November 17, crude benzene commodity index was 66.76, unchanged from yesterday, down 49.36% from 131.84 (2013-01-28), the highest point in the cycle, and up 70.09% from 39.25, the lowest point on December 22, 2014. (Note: cycle refers to 2011-09-01 to now).

II. Market analysis:

This week (11.11-11.15), the domestic crude benzene market was up. The average market price at the beginning of the week was 4131.67 yuan / ton, while that at the end of the week was 4263.33 yuan / ton, up 3.19%.

Domestic market: the crude benzene market price was increased this week. As of Friday, the mainstream market price was 4200-4400 yuan / ton, 150-200 yuan / ton higher than last week. This week, the external market of pure benzene rebounded slightly, and the supply of pure benzene market was in short supply, driving the price of pure benzene higher in North China. The operating rate of hydrogenated benzene enterprises has increased this week, and the demand for crude benzene has increased to a certain extent, which supports the crude benzene market. The bidding price in the main production areas has increased this week.

Industry chain: crude oil: this week’s crude oil range fluctuated, affected by economic data, progress of trade negotiations and US crude oil inventory. WTI was up 1% and Brent was up 2.46% compared with November 8. Pure benzene: at the beginning of the week, the market demand for pure benzene was weak and the price was lower. However, the reduction of hydrogenated benzene production led to the decrease of supply, driving the price of pure benzene higher in North China. Tight spot supply and drop in port inventory led to short covering, which drove the price of pure benzene to continue to rise.

3. Trend forecast:

Next week, oil prices may continue to fluctuate. The supply and demand of coking industry has been improved, the support surface of hydrogenated benzene is strong, and the power of pure benzene follow-up belt is still strong. In addition, the port inventory is low, and the spot market supply is tight, which has strong support for the bottom of pure benzene. The downstream support is limited, and the price of crude benzene in the future is mainly consolidated, with weak increase.