Galaxy Futures: Refineries' Preventive Capacity Reduction Affects Aromatic Product Supply

Affected by concerns over the stability of upstream raw material supplies, some domestic refineries have taken preemptive measures to reduce their output. It is reported that a major plant in East China has already shut down a 3.8 million-ton catalytic reforming unit for maintenance. This unit was originally scheduled for maintenance around mid-month. Subsequently, Korean refineries may also reduce their output. Pure benzene mainly comes from catalytic reforming and other units at refineries, which are by-products of refining. Reduced output impacts the supply of aromatics such as PX and pure benzene. Recently, the main refinery listed prices have been continuously raised. Today, Sinopec’s listed price for pure benzene increased by 400, to 7,200 yuan/ton, with all refineries under its umbrella uniformly implementing the increase, driving up pure benzene prices. Under the influence of the Strait of Hormuz, the import and export of styrene sources between Europe and Asia will be restricted. Iran’s styrene plants are temporarily shut down, which will boost the export market for domestic styrene. If the Strait of Hormuz remains non-operational for an extended period, affecting refinery supplies, it could force refineries to reduce output passively, thereby impacting the supply of aromatics. Overall, the aromatics sector is trending upward, with continued attention to the impact of Middle Eastern logistics and transportation on supply. (Galaxy Futures)