Aug 27 2010
Himfr.com, one of China's leading B2B search platforms with more than 30 B2B industry websites to its name, predicts China's pure benzene market trends.
Pure benzene market trends are always fragile. A downstream and upstream increase in production or reduction can have an enormous effect on the pure benzene market. In 2010, fluctuations in pure benzene prices have the following reasons:
First, with an increase in consumption of last year's domestic aromatic devices, pure benzene's overall output increased.
Second, before China's Spring Festival, there is a prediction that pure benzene's downstream demand will be reaching a comparative high.
Third, downstream device accident maintenance is frequently required. Downstream auxiliary devices drive domestic styrene and adipic acid demand with frequent accident device maintenance, which in turn drives benzene demand.
Fourth, imported pressures still affect pricing. During the first half of 2009, the increase in China's pure benzene imports was huge. In order to prevent large amount of imports, domestic benzene was priced close to the running international price. Synchronous highs and lows also in the import market also drive domestic price fluctuations of benzene.
By contrast, in the first half of 2010, domestic pure benzene demands have increased 13% year-on-year, while at the same time domestic yield increased 38%. Such a gap between supply and demand has caused pure benzene prices to fluctuate frequently. Import and export volumes have also seen a marked contrast. In the first half of 2010, import volume year-on-year was reduced 22% compared to last year, while exports increased 113% year-on-year.
Besides supply and demand factors, other factors will also have great impact on the pure benzene market. It is expected that in the second half of 2010 the pure benzene market will not be optimistic.
Source: http://www.himfr.com/