Shouchuang Futures: Crude oil's strong momentum drives the market, and pure benzene futures hit a new high since listing.

Crude oil’s strong momentum has driven pure benzene futures to hit their highest level since listing. In the spot market, on March 3, the CFR China price for pure benzene was $878/ton, up $43/ton from the previous trading day. Mainstream prices in East China are around 6,730 yuan/ton, up 320 yuan/ton from the previous day.

On the cost side, the ongoing US-Iran conflict continues to impact shipping through the Strait of Hormuz, causing a significant rise in international oil prices and providing strong support for pure benzene costs.

Regarding supply, during the Spring Festival, Asian and domestic pure benzene plants maintained stable operation. After the holiday, port inventories increased by one day, while downstream factories’ raw material inventories decreased by two days compared to before the holiday. As we enter March, the petrochemical plant maintenance season, Zhejiang Petrochemical’s previous maintenance plan is expected to be fulfilled.

In terms of demand, downstream styrene production has increased by 1.4 percentage points compared to before the holiday, while other downstream sectors have seen little change. Spot supply in the CPL industry is slightly tight, and overall downstream industry operating rates are expected to rise.

Viewpoint: In the short term, pure benzene futures are trending stronger, driven by crude oil’s strength. In the medium term, with maintenance plans at pure benzene plants in March and gradually recovering downstream operations, supply and demand are expected to improve. It is anticipated that pure benzene futures will remain relatively strong in the short term, with attention to crude oil price movements and plant operation changes. (First Capital Futures)