Sinopec Implements CNY300 per Ton Hike in Benzene Prices Across China

China Petroleum & Chemical Corp. (Sinopec), the largest oil refining company in Asia, has implemented a price adjustment, increasing domestic benzene selling prices in China by 250 yuan (CNY) or USD 35.01 per ton, effective from January 17. The revised selling price for benzene now stands at CNY 7,850 per ton, ex-works. This figure aligns with the cost of imported material, which is equivalent to USD 961 per ton, CFR China, for immediate payment under a letter of credit. Alternatively, it approximates USD 973 per ton, CFR China, for deferred payment under a letter of credit within a 90-day period.

This recent development follows a prior adjustment by Sinopec, where on December 20, the company raised domestic benzene selling prices in China by 150 yuan (CNY) or USD 20.8 per ton. The benzene selling price at that time was set at CNY 6,950 per ton, ex-works. Correspondingly, the cost of imported material amounted to USD 854 per ton, CFR China, for immediate payment under a letter of credit, or approximately USD 865 per ton, CFR China, with deferred payment under a letter of credit within a 90-day period.

These adjustments in benzene prices by Sinopec reflect the dynamic nature of the market and are influenced by various factors, including global supply and demand dynamics, production costs, and economic conditions. The increase in benzene prices indicates the company's response to market forces and its efforts to maintain a competitive position in the industry.

The current selling price of CNY 7,850 per ton for benzene signifies a notable upward shift from the previous figure, reflecting the evolving market conditions. The corresponding USD values provide a clear understanding of the international pricing dynamics, considering both immediate and deferred payment scenarios.

Sinopec's strategic decision to adjust benzene prices aligns with the broader economic landscape and the intricate balance between domestic demand and global market trends. The company's role as a key player in Asia's oil refining sector underscores the significance of its pricing decisions, which can have ripple effects across the industry and influence market sentiments.

It is crucial to note that benzene is a fundamental chemical compound with diverse applications, including its use as a precursor to various chemicals and plastics. Therefore, its pricing has implications not only for the petrochemical industry but also for downstream sectors that rely on benzene-derived products.

As the global economy continues to evolve, with fluctuations in commodity prices and supply chain dynamics, Sinopec's approach to pricing adjustments reflects its adaptability and resilience in navigating the complexities of the energy and petrochemical markets.