The crude oil market continued to fall on May 18 and closed below US $70/ barrel. Offers of overseas benzene supply closed higher in Asia and European markets on the same day.
However, Asian benzene market edged lower on May 19. July cargo was quoted up to US $895/ ton (FOB Korea main port), corresponding buying level was at $888 / ton, or down US $7-10 from the previous close.
As of yesterday, intercontinental arbitrage opportunities between Asia and Europe still existed. Overseas goods in Asian market ranged between $902.5-903.5 / ton, the spread between domestic goods and overseas goods ranged 300-400 Yuan / ton.
China's benzene market followed the price decline of Sinopec yesterday, but the decline was not meaningful to the market, as manufacturers still hold high inventory and face larger supply pressure.
After the sharp decline, market sentiment appeared deserted yesterday, offers were light, and some traders temporarily closed offers and exited the market, waiting for market rebound.
Recently Asian Styrene and aniline market conditions continued in downward direction. As the market faces many negative factors, short-term market trend is expected to go lower, fundamentals will witness, basically no change.