Shouchuang Futures: Crude oil prices soften, pure benzene futures price center shifts downward

Spot market: CFR China pure benzene price is $1,072 per ton, down $70 per ton from the previous trading day. On the supply side, the geopolitical conflict is still ongoing. The number of cases in which domestic and overseas refineries have announced force majeure due to raw-material shortages has increased. Last week, Asia’s pure benzene operating rate fell by 0.2 percentage points, and China’s pure benzene operating rate fell by 1 percentage point. Pure benzene inventories at East China ports fell by 10,000 tons. On the demand side, downstream styrene and CPL operating rates declined; phenol operating rates increased somewhat; and operating rates at other downstream facilities were basically stable. Downstream pure benzene plants are somewhat cautious about purchasing high-priced feedstock. In short, the geopolitical risk premium has fallen, crude oil prices have dropped sharply, and China’s chemical-and-fuel product sector has collectively adjusted. However, further refinery production cuts are continuing due to disruptions in crude oil supply. It is expected that the rate of destocking in pure benzene supply and demand in March to April will increase somewhat, which may limit the downside space for pure benzene futures prices. Keep an eye on the geopolitical situation, crude oil price moves, and changes in plant operating rates. (CICC Futures)