Bullish Supply Side Pushed up Oil-Based Benzene Price
In the first half of 2021, the oil-based benzene price fluctuated upwards. The crude oil price went up, and the market had some robust performance, which gave the oil-based benzene market some strong support. Before China’s Spring Festival holiday, Zhongjin Petrochemical’s units could not restart, and the units at Brunei malfunctioned, which helped oil-based benzene price rise. Sinopec took the opportunity and raised its listed price. The trading atmosphere became more active, and the market price went up again and again. However, downstream clients felt the pressure and showed some resistance. As a result, the oil-based benzene price dropped from a high level. Even so, destocking continued at major ports, and Sinopec kept its listed prices firm. Some units at foreign factories malfunctioned. The oil-based benzene price only fell limitedly. Destocking was sustained in the first half of 2021. Some new downstream units were put into operation. The fundamentals were encouraging. The oil-based benzene price went up gradually and stably.
No new oil-based benzene unit was put into operation in the first half of 2021. Units were overhauled intensively in April and May. Thus, the overall supply of oil-based benzene was tight.
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