Founder Futures: Cost boost combined with supply tightening, pure benzene futures prices once again hit the limit.

In terms of spot prices, on March 4, the CFR China price for pure benzene was $881 per ton, an increase of $3 per ton from the previous trading day. The mainstream price of pure benzene in East China was 7340 yuan per ton, an increase of 555 yuan per ton from the previous trading day. In terms of costs, the conflict between the US and Iran continues, the transportation in the Hormuz Strait is blocked, international oil prices have surged, SC crude oil has hit the limit again, providing strong support for the cost of pure benzene. In terms of supply, a factory in South Korea is planning to shut down for maintenance for 50 days starting on March 4, affecting a production capacity of 310,000 tons of pure benzene. A large factory in East China has a 3.8 million ton reforming unit shutting down for maintenance, originally scheduled for mid-month. Due to geopolitical factors, news of reduced production in domestic and foreign naphtha cracking units or suspension of pure benzene bidding continues to be released. In terms of demand, the operating rate of downstream styrene has increased by 1.4 percentage points compared to before the holiday, with little change in other downstream sectors. The CPL industry in the spot market is slightly tense, with overall expectations of an increase in downstream industry operating rates. In summary, influenced by geopolitical factors, the instability of plant operations domestically and internationally, expectations of reduced supply, and the rise in costs due to the surge in oil prices, it is expected that the short-term pure benzene futures prices will remain strong. Keep an eye on the trend of crude oil prices and changes in plant operations.