Shouchuang Futures: Crude oil prices fell, and pure benzene futures prices weakened accordingly.

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In terms of costs, geopolitical tensions have eased, the traffic volume through the Strait of Hormuz has increased, and supply concerns have further eased. In addition, the US dollar has strengthened significantly, putting pressure on dollar-denominated commodity prices. International oil prices have suffered a heavy blow.
On the supply side, last week Asia's benzene operating rate increased slightly by 1.2 percentage points month-on-month, domestic benzene operating rate increased by 0.2 percentage points month-on-month, and domestic hydrogenated benzene operating rate decreased by 4 percentage points month-on-month. Benzene inventory at East China ports decreased by 5k tons month-on-month. In July, planned maintenance of benzene is concentrated, with Hainan Refining & Chemical, Fuhaichuang, Fuhai, and Shenghong all carrying out maintenance in July.
On the demand side, downstream, the operating rates of styrene and phenol plants have increased, while the operating rates of adipic acid and aniline plants have declined. Both benzene paper contract prices and Sinopec's benzene listing price have been lowered, and downstream plants mainly purchase on demand at low prices.
In summary, domestic benzene supply will contract in July, but the decline in crude oil prices is dragging down benzene prices. It is expected that benzene futures prices will mainly fluctuate and adjust along with costs in the short term. Focus on geopolitical situations and equipment changes. (Capital Futures)
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