Lead: As of May 14, the average weekly price of mixed C5 in Shandong was 5,392 yuan/ton, up 222 yuan/ton from the previous week, an increase of 4.29%; the average weekly price of mixed C5 in East China was 5,408 yuan/ton, up 58 yuan/ton from the previous week, an increase of 1.08%.

I. Review of Mixed C5 Market

Domestic mixed C5 spot prices rose during this period. In Shandong, mixed C5 prices fluctuated within a range of 5,100-5,690 yuan/ton. In East China, mixed C5 prices fluctuated within a range of 5,050-5,750 yuan/ton. International oil prices increased this week. In the Shandong region, refined oil product prices reversed their decline and rebounded. Local refineries took the opportunity to raise quotations, but limited terminal consumption led to slow inventory digestion among social entities, and market transaction sentiment cooled. For mixed C5, supply decreased in the East China and Northeast markets. Driven by the upward push in the refined products market and improved supply-demand fundamentals, refineries actively raised prices during the week. Traders and downstream factories actively entered the market to purchase, resulting in good market transactions.

II. Price Comparison of Mixed C5 and Related Products

| Product | Region | This Period Average | Previous Period Average | Change | Change % | Unit |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| International Crude Oil Futures | WTI | 98.33 | 102.16 | -3.83 | -3.75% | USD/barrel |
| | Brent | 103.79 | 109.55 | -5.76 | -5.26% | USD/barrel |
| Mixed C5 | Shandong | 5,392 | 5,170 | 222 | 4.29% | yuan/ton |
| | East China | 5,408 | 5,350 | 58 | 1.08% | yuan/ton |
| Raffinate Oil | Shandong | 5,722 | 5,545 | 177 | 3.19% | yuan/ton |
| | East China | 5,733 | 5,775 | -42 | -0.73% | yuan/ton |
| High-Olefin C5 | Northwest | 6,488 | 6,426 | 62 | 0.96% | yuan/ton |
| Gasoline (92#) | Dongying | 7,980 | 7,833 | 147 | 1.88% | yuan/ton |

Source: chempricehub Information

During the week, international crude oil prices rose. The main bullish factors were: significant differences between the US and Iran caused peace talks to reach an impasse; the escalation of blockades on the Strait of Hormuz by both sides heightened concerns about supply risks, providing support to oil prices. On the demand side, refined oil product prices in the Shandong region reversed their decline and rebounded. Local refineries seized the opportunity to raise quotations. However, limited terminal consumption led to slow inventory digestion for social entities. Midstream and downstream players, after a brief restocking period post-holiday, entered a digestion phase. Therefore, as the weekend approached, both buyers and sellers remained cautious in their purchasing operations, and market transaction sentiment cooled. Supported by demand, related product refineries pushed up prices for sales, leading to higher prices.

III. Market Outlook

The US visit to China is expected to promote a relaxation of tensions in the Middle East. It is anticipated that international oil prices may have room to decline next week. Refineries are operating at a loss but continue to balance between inventory pressure and price support. Next week, domestic gasoline and diesel prices are expected to show a slight downward trend. Next week, CNOOC Taizhou plans a turnaround, leading to tight spot supply of mixed C5 and raffinate oil in East China. Although there is some support from the supply-demand fundamentals, terminal demand remains sluggish. Therefore, it is expected that the domestic C5 light component market may have room to move downward next week, with tight spot supply at various refineries limiting the extent of the decline.