Metallurgy / Chemicals / Rubber & Plastics

Recently, the butadiene product, which has just set a three-year high, has fallen for 7 consecutive working days, with a cumulative price drop of nearly 1,725 yuan/ton. The current butadiene quotation is about 9987 yuan/ton, down 3,121 yuan/ton from the beginning of August, a 23.81% drop, and the higher point is 3813 yuan/ton, a 27.63% drop, and major manufacturers have also lowered their product quotations.

Inner Mongolia Jiutai Energy's price is lowered by RMB 400/ton to RMB 9,400/ton.

The listing price of Jiangsu Silbang Petrochemical was lowered by RMB 700/ton to RMB 10,300/ton.

The price of Dalian Hengli Petrochemical was lowered by RMB 200/ton to RMB 10,060/ton.

Sinopec East China Sales Company lowered the butadiene price of Shanghai Petrochemical, Zhenhai Refinery and Yangzi Petrochemical by 300 yuan/ton, and implemented 10,300 yuan/ton.

Sinopec North China Sales Company lowered the butadiene price of Sinopec (Tianjin Ethylene) by 300 yuan/ton to 10,300 yuan/ton.

Sinopec Huazhong Sales Company lowered the butadiene price of Wuhan Petrochemical by 300 yuan/ton, and implemented it at 10,300 yuan/ton.

The butadiene price of Sinopec South China Sales Company has been lowered by 300 yuan/ton: Guangzhou Petrochemical implements 10,300 yuan/ton, Maoming Petrochemical implements 10,250 yuan/ton, and Zhongke Refinery implements 10,200 yuan/ton.

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Under the impact of the news of price cuts, some companies have limited high-price offers and limited real orders, and poor transactions have also dragged down market expectations. According to industry insiders, the reason for the price drop is that the new production capacity of some products has caused a significant increase in supply. Under the influence of negative market supply and demand fundamentals, merchants have a strong bearish sentiment.

The price of more than 40 kinds of chemical products has fallen, and those who have fallen by more than 1,000 yuan / ton are everywhere

According to the Coatings Purchasing Network, in addition to butadiene, which fell by 3,121 yuan/ton in a month, under the appearance of the recent boom in the chemical market, there are also many chemicals whose prices have quietly fallen, and these products are all The early-stage market is hot and continues to rise, even hitting a new high for many years. Such a rapid "turn" caught many people by surprise.

Liquid ammonia was quoted at RMB 3,900/ton, a decrease of RMB 983.33/ton from the beginning of August, a decrease of 20.14%

Under the influence of corporate maintenance and domestic shortages, liquid ammonia first experienced a soaring market in mid-to-late July, but the good times did not last long, and then the price of liquid ammonia continued to fall. Due to the poor traffic and inventory backlog caused by the epidemic, the surge in production caused by the high operating rate of enterprises, and the negative demand, liquid ammonia has fallen again and again. The current domestic liquid ammonia price is 3900 yuan/ton. It fell below 4,000 yuan/ton, a decrease of 983.33 yuan/ton from the beginning of August, a decrease of 20.14%

The price of chloroform is 3150 yuan/ton, down by 600 yuan/ton from the beginning of August, or 16%

Previously, chloroform had started the "accelerated run" process, and the price soared to 3440 yuan/ton, and even exceeded 4,000 yuan/ton, with a single-day increase of 8.7%, which was the highest single-day increase in 10 years. Then the high temperature weather gradually passed, the demand for refrigerants in the market weakened, domestic sales and foreign trade were unsatisfactory, and the price of raw material liquid chlorine was low, and the impact on the cost side was negative. The price of chloroform dropped by RMB 600/ton from the beginning of August, a drop of 16%.

PTA quoted at RMB 4,785/ton, down RMB 765/ton from the beginning of August, or 13.78%

Since the beginning of this year, the prices of crude oil and PX at the cost end of PTA have continued to rise, and the price of auxiliary material acetic acid has risen significantly. Affected by the typhoon, the price of PTA has risen sharply in recent days, reaching more than 400 yuan/ton in just a few days. At the end of July, the PTA quotation exceeded 5,405 yuan/ton, and large factories even experienced insufficient supply and cut orders. As the new superimposed PTA devices are being started up, the supply side will increase with the increase in the operating rate of the devices. At present, the domestic PTA price has fallen below 5,000 yuan/ton, and the price has fallen by 765 yuan/ton from the beginning of August, a decrease of 13.78%.

Urea is quoted at RMB 2,480/ton, a decrease of RMB 350/ton from the beginning of August, or 12.37%

In the early stage, due to the flooding in Shanxi, most urea companies in Jincheng stopped, and the market inventory was greatly reduced. Supported by multiple favorable factors, the domestic urea spot market continued to rise, and some prices reached new highs again. The current agricultural peak season is about to end, industrial demand is insufficiently supported, and the urea market is sluggish, and even two drops a day. In order to ensure the continuity of orders, major manufacturers have introduced preferential policies, and actual transaction prices are often lower than expected, with prices falling by 350 yuan/ton, or 12.37%, from the beginning of August.

MMA quoted at RMB 13,583.33/ton, down by RMB 1,696.67/ton from the beginning of August, or 11.1%

Prior to this, the domestic MMA export market expanded rapidly, with monthly export volume hitting new highs repeatedly. Due to the "three-pronged approach" of high MMA exports, low output, and low imports, the domestic MMA market inventory has plummeted, and the price once exceeded the 14,000 yuan/ton mark. Near the end of the month, most shopping malls wait and see, and negotiations are deadlocked. At present, MMA is mainly focused on consolidation, and the price has dropped by 1,696.67 yuan/ton from the beginning of August, a decrease of 11.1%.

The price of hydrogenated benzene was RMB 7,530/ton, down RMB 607.5/ton from the beginning of August, or 7.47%

In the middle of the year, due to the influence of festival activities, the start-up load of the production area dropped significantly, and the negotiation width of the East China market increased. The spot negotiation once approached 9,000 yuan/ton, setting a 6-year high. In August, the listing price of Sinopec's pure benzene was lowered three times, with a cumulative reduction of 600 yuan/ton. The fundamentals of pure benzene and downstream styrene have weakened. Due to the domestic epidemic, logistics in many places were restricted, and corporate shipments were blocked, and downstream The operating rate was further reduced, and the demand for hydrogenated benzene declined. The current quotation of hydrogenated benzene has fallen by RMB 607.5/ton from the beginning of August, a decrease of 7.47%.

Isooctyl alcohol is quoted at RMB 17,366.67/ton, down by RMB 1,300/ton from the beginning of August, or 6.96%

Prior to this, the price of isooctanol had soared to a high value of 18566.67 yuan/ton, an increase of 156% over the same period last year. Later, due to the weakening of cost support and the increasing supply of construction and construction, prices also fell slightly. The current quotation is down 1,300 yuan/ton from the beginning of August, a drop of 6.96%.

Styrene is quoted at RMB 8,787/ton, down RMB 594/ton from the beginning of August, or 6.33%

This year there was an outbreak of styrene, successfully breaking through the 10,000 yuan/ton mark, which was very strong, and once again reached the 10,000 yuan mark in the middle of the year. Then the cost center of gravity collapsed, the rebound was weak, and it began to continue to fall. Recently, styrene plants have been restarted frequently, which weakened the impact of shutdown for maintenance. The market inventory is relatively abundant, but the downstream procurement is weak, and the spot transaction is insufficient. The current price is 594 yuan/ton lower than that in early August, a 6.33% drop.

The price of ethylene glycol is 5276.67 yuan/ton, down 340 yuan/ton or 6.05% from the beginning of August

This year, the price of ethylene glycol has rushed to 6000 yuan/ton, setting a new high. Afterwards, due to the sharp decline in the downstream polyester end, the fundamentals were not optimistic, coupled with the rebound in supply, the tightness of market inventory has eased. The price of ethylene glycol has shifted downward, and the current offer price is down 340 yuan/ton from the beginning of August, a drop of 6.05%.

The price of polymer MDI is 18825 yuan/ton, down 1125 yuan/ton or 5.64% from the beginning of August.

It is reported that Wanhua Chemical, Shanghai Huntsman, BASF, Dow Chemical, etc. have all increased the prices of MDI products, and the supply of MDI has continued to tighten. The price of MDI products has been rushing from June last year to 12,000 yuan/ton. Soaring to 28,000 yuan/ton, the highest in the past three years. Afterwards, the East China region aggregated the MDI market quotations, and the market sentiment declined, and price negotiations were the main focus. The current market quotation is down 1125 yuan/ton from the beginning of August, a decrease of 5.64%.

The price of ethyl acetate was 8225 yuan/ton, down 425 yuan/ton from the beginning of August, or 4.91%

Earlier, the price of ethyl acetate soared to 8,950 yuan/ton, the highest point in ten years. Subsequently, the domestic ethyl acetate market fell, and the bidding prices of Shandong's main factories continued to decline, releasing negative results, and the market transaction atmosphere was light. The current quotation is down 425 yuan/ton from the beginning of August, or 4.91%. It is expected that the domestic ethyl acetate market will continue to weaken in the short term.

Based on the above data, it is not difficult to see that the chemicals that have recently shown a downward trend are basically products that have sprinted for high value before. Such as hydrogenated benzene, ethylene glycol, polymeric MDI, ethyl acetate, etc. This is also in line with the previous analysis by industry insiders that chemical products cannot always rise, and they always have a top-down trend after they hit the ceiling. On the one hand, downstream customers' resistance to high prices, on the other hand, the upstream disadvantages and equipment restarts and the concentrated commissioning of new production lines have led to an increase in supply. However, whether this round of decline in chemical raw materials is a reversal or a callback, the latter has a higher probability.