Core Viewpoint - The article discusses the short-term fluctuations and long-term bearish outlook for pure benzene prices, influenced by crude oil prices and supply-demand dynamics [3][4]. Group 1: Cost and Price Dynamics - The long-term price trend of pure benzene is closely aligned with crude oil prices, which are expected to be under pressure due to OPEC+ plans to increase production, offsetting seasonal consumption improvements in Q3 [4]. - The cost and supply-demand factors are expected to exhibit mixed signals in Q3, leading to potential price fluctuations [13]. Group 2: Supply and Demand Analysis - High import volumes of pure benzene remain a significant bearish factor for supply, although domestic refinery maintenance may lead to a seasonal decline in domestic production [7]. - Q3 is anticipated to see a temporary improvement in supply-demand dynamics due to the peak demand season, but Q4 is expected to witness a gradual weakening in demand [9]. - Overall, while there may be a short-term improvement in supply-demand in Q3, the outlook for Q4 suggests increased supply and weakened demand, putting pressure on pure benzene prices [11]. Group 3: Strategic Outlook - The strategy suggests a short-term focus on fluctuations with a long-term bearish stance, recommending to sell on highs [15]. - For cross-product strategies, locking in styrene processing margins above 800 RMB/ton is advised, along with a recommendation to buy pure benzene and sell styrene on highs [16]. - The PX-BZ spread indicates that while PX valuations are currently under pressure due to weak demand, there is potential for PX valuations to strengthen in late Q3, suggesting a buy on PX and sell on pure benzene [17].

Report Industry Investment Rating No relevant information provided. Core Viewpoints of the Report The report comprehensively analyzes the pure benzene industry, covering its basic information, production processes, supply - demand situation, storage and transportation, pricing models, and supply - demand gap forecasts. It shows that the global and domestic pure benzene industries are in a state of development, with increasing production capacity and consumption, and in 2025, the domestic pure benzene supply is expected to be in a relatively loose state [22][25][63]. Summary by Directory 1. What is Pure Benzene? - Pure benzene, with the chemical formula C6H6, is a basic petrochemical raw material and a hazardous chemical. It can be divided into petroleum benzene (purity > 99%) and coking benzene (purity < 96%). Petroleum benzene is more widely used [5]. - It has a wide range of uses, being a key intermediate for many chemical products and also used as a solvent. It has specific physical and chemical properties and should be stored and handled with care due to its flammability and explosiveness [5]. 2. Pure Benzene Production Processes and Industrial Chain - The main global production processes include catalytic reforming of petroleum fractions, ethylene plant co - production, aromatics extraction from refinery reforming, toluene disproportionation in p - xylene plants, and coal tar extraction. The first four produce petroleum benzene, and catalytic reforming is the most important source [8]. - Pure benzene can also be obtained from other aromatics through processes like toluene disproportionation/shape - selective disproportionation and xylene isomerization. About 25% of pure benzene supply comes from hydrogenated benzene produced by coal tar extraction [9][10]. - In terms of the industrial chain, 42% of pure benzene is used for styrene production, 19% for caprolactam, 16% for phenol, 12% for aniline, and 6% for adipic acid. The downstream products are diverse and related to daily life [15]. 3. Pure Benzene Storage, Transportation, and Quality Standards - There are two quality inspection standards for pure benzene, GB/T 3405 - 2025 for petroleum benzene and GB/T 2283 - 2019 for coking benzene. Only petroleum benzene - 545 meets the Dalian Commodity Exchange's delivery standard [18]. - Pure benzene should be stored in a cool, dry, and well - ventilated warehouse, away from fire, heat, and power sources, at a temperature between 5°C and 25°C. Transportation vehicles should meet relevant standards, and transportation personnel should be professionally trained [20][21]. 4. Global Pure Benzene Supply - Demand Overview - In 2024, global pure benzene production capacity was about 83.31 million tons/year, with an average annual compound growth rate of 4.77% compared to 2020. Production is concentrated in Asia, North America, and Western Europe, with Asia accounting for over 50% of the global capacity [22]. - In 2024, global pure benzene consumption exceeded 65 million tons, a 30% increase compared to 2020. Northeast Asia had the largest consumption share (60%), followed by North America (13%) [25]. 5. China's Pure Benzene Supply Situation - In 2024, China's pure benzene production capacity reached 34.78 million tons/year, with a growth rate of 5%. In 2025, new production capacity of 2.41 million tons is planned, with 1.56 million tons of petroleum benzene and 0.35 million tons of hydrogenated benzene [26][29]. - China's pure benzene supply consists of domestic petroleum benzene, hydrogenated benzene, and imports. In 2024, their shares were 71%, 14%, and 15% respectively. Petroleum benzene capacity is concentrated in East, Northeast, and South China, while hydrogenated benzene capacity is concentrated in North and East China [32][34]. 6. China's Pure Benzene Import - Export Situation - China's pure benzene import - export mainly concerns petroleum benzene. In recent 5 years, the export volume has been less than 50,000 tons. The import dependence has increased from 11.6% in 2020 to 15% in 2024, and the import volume has also shown an upward trend [36]. 7. China's Pure Benzene Demand Situation - China is the world's largest pure benzene consumer and importer. The main downstream products are styrene, caprolactam, phenol, aniline, and adipic acid [37]. - For styrene, in 2024, the effective production capacity was 21.922 million tons/year. In 2025, new production capacity of 2.1 million tons is planned, which may increase pure benzene demand by about 1.65 million tons [40]. - For caprolactam, 98% is used for nylon 6 production. In 2025, new production capacity of 650,000 tons is planned, which may increase pure benzene consumption by about 570,000 tons [44][46]. - For phenol, in 2025, new production capacity of 770,000 tons is planned, which may increase pure benzene demand by about 700,000 tons [49][51]. - For aniline, in 2025, new production capacity of 360,000 tons is planned, which may increase pure benzene consumption by about 310,000 tons [56]. - For adipic acid, in 2025, new production capacity of 500,000 tons is planned, which may increase pure benzene demand by about 380,000 tons [57]. 8. Pure Benzene Pricing Model - In the Asian pure benzene market, the FOB Korea price is the core benchmark, and the trading mode is mainly negotiation. The domestic market mainly uses contracts, with Sinopec's pure benzene listed price as the main reference, but the reference degree of third - party prices is increasing [60]. 9. Pure Benzene Supply - Demand Gap Forecast - From 2021 to 2024, the domestic pure benzene supply - demand gap was negative due to downstream capacity expansion. In 2025, it is expected to be positive, with an oversupply of about 1.2 million tons [61][63].