The situation in the Middle East has eased, and the news of the US Iran peace talks has led to a wide decline in international oil prices. The prices of related aromatic hydrocarbon products in the periphery have collectively declined, and the prices of toluene refineries in Shandong are difficult to maintain stability. Refinery listings have fallen to pre holiday levels. However, the overall shipment level of toluene refineries during the week was still acceptable, and the company continued to maintain low inventory levels, with sporadic companies bidding at a premium. A reforming unit at Tianjin Petrochemical is temporarily shut down, resulting in an increase in toluene outflow from Shandong.
Positive factors: The restructuring unit is experiencing severe losses, with good cost support; The exit window is open; Downstream benzene production enterprises plan to start production.
Negative factor: Gasoline consumption is very limited.
The export negotiations for toluene within the week are good, and the market is expected to replenish inventory; Moreover, local refining enterprises are suffering significant losses, and the willingness of producers to lower prices is very limited. Therefore, the space for further decline in toluene prices in Shandong region is very limited. At the same time, two downstream benzene production enterprises plan to start production, with an expected increase in toluene consumption. Short term positive news is currently dominant, and there may be some room for a slight increase in toluene prices in Shandong region. But the repeated situation in the Middle East has led to fluctuations in international oil prices, increasing the uncertainty of toluene price fluctuations.