Metallurgy / Chemicals / Rubber & Plastics

On the first working day of August (2nd), the international oil price fell sharply and stopped the "three consecutive sunshine". The WTI September contract had the deepest intraday drop of 4.6%, and finally closed at US$71.49 per barrel; Brent crude oil futures fell the most by 4.1%. It was as low as US$72.32 that day, and it fell below the three barriers of US$73, 74, and 75, the biggest drop in the past two weeks.

International crude oil plunges, chemical products "big dive"

As the king of commodities, the fluctuation of crude oil prices is bound to affect the price trend of chemical products. The deep drop in international crude oil prices also dragged down downstream chemical commodity prices. On August 4, the domestic futures market was in early trading, and crude oil futures fell the most. As of 9 am of the same day, the main contracts of fuel oil and LU futures have fallen by more than 2%, and the main contracts of 13 varieties of LPG, crude oil, staple fiber, rapeseed meal, and soybeans have fallen by more than 1%. The chemical market has also seen a decline, and some products have continued to show a decline in market prices for many days, and prices have fallen.

Styrene fell for seven consecutive years

Styrene is quoted at RMB 8,825/ton, which has already achieved seven consecutive declines, with a cumulative decline of RMB 641.67/ton.

Pure benzene fell for seven consecutive days

The price of pure benzene is 7,537.50 yuan/ton, and it has already achieved seven consecutive declines, with a cumulative decline of 675 yuan/ton.

Hydrogenated pure benzene fell for five consecutive years

The price of hydrogenated pure benzene is 7516.67 yuan/ton, which has already achieved five consecutive declines, with a cumulative drop of 451.66 yuan/ton.

Diethylene glycol five consecutive declines

Diethylene glycol was quoted at 6122.5 yuan/ton, which has now achieved five consecutive declines, with a cumulative drop of 150 yuan/ton.

Phenol fell three times in a row

Phenol was quoted at 9087.5 yuan/ton, which has now achieved three consecutive declines, with a cumulative drop of 168.75 yuan/ton.

Unsaturated resin three consecutive declines

Unsaturated resin is quoted at 11,000 yuan/ton, and has now achieved three consecutive declines, with a cumulative decline of 200 yuan/ton.

Two consecutive declines in ethylene glycol

Ethylene glycol is quoted at 5285 yuan/ton, and has now achieved two consecutive declines, with a cumulative decline of 242.5 yuan/ton.

Pure MDI fell twice in a row

The price of pure MDI is 23966.67 yuan/ton, and it has achieved two consecutive declines, with a cumulative drop of 483.33 yuan/ton.

Two consecutive declines in aggregate MDI

The price of polymeric MDI is 19,575 yuan/ton, and it has now achieved two consecutive declines, with a cumulative drop of 325 yuan/ton.

In addition, products such as epichlorohydrin, acetic acid industry chain, propylene glycol, butadiene have also shown a slight decline recently, and many chemical companies have significantly lowered their quotations.

Shandong Jinyimeng Group Co., Ltd. price of ethyl acetate is 8,500 yuan/ton, down 100 yuan/ton.

Jiangsu Baichuan High-tech New Materials Co., Ltd. quoted ethyl acetate at 8550 yuan/ton, down 200 yuan/ton.

Shandong Hualu Hengsheng liquid ammonia is now reported at 4750 yuan/ton, down 100 yuan/ton.

Shandong Jinling trichloromethane bulk water factory reported 3,220 yuan/ton, down 180 yuan/ton.

Jiangsu Xinhai Petrochemical Co., Ltd. quoted 7,700 yuan/ton for propylene, down 50 yuan/ton.

Zhejiang Mantangjin Supply Chain Management Co., Ltd. cut its TDI offer by 500 yuan/ton, domestically produced goods at 14,500 yuan/ton, and Shanghai goods at 15,000 yuan/ton.

Sinopec North China Sales Company lowered the butadiene price of Sinopec (Tianjin Ethylene) by 200 yuan/ton to 11,800 yuan/ton.

Sinopec Huazhong Sales Company lowered the price of butadiene of Wuhan Petrochemical by 200 yuan/ton to 11,800 yuan/ton.

The butadiene price of Sinopec South China Sales Company has been lowered by 200 yuan/ton: Guangzhou Petrochemical will implement 11,800 yuan/ton, Maoming Petrochemical will implement 11,750 yuan/ton, and Zhongke Refinery will implement 11,700 yuan/ton.

Industry insiders said that since the beginning of this year, the continued increase in chemical products has been inextricably linked to the high volatility of crude oil. Now the impact of the decline in oil prices is gradually transmitted, which has also caused some chemical products to fall in price. However, in the long run, the impact of the epidemic on the supply side of the chemical industry will continue, and it is becoming more and more intense. The force majeure of chemical industry leaders has increased anxiety, and downstream factories have also suffered corresponding pressure. Future changes in chemical product prices may be a game between upstream costs and downstream demand.