Weak consolidation of plasticizer DOP this week

According to the Commodity Market Analysis System of the Business Society, as of April 17th, the DOP price was 9917.50 yuan/ton, a decrease of 0.33% compared to April 10th, when the DOP price was 9950 yuan/ton. Plasticizer manufacturers are operating steadily, with sufficient supply in the plasticizer market. Downstream procurement is in urgent need, and customer procurement enthusiasm is average. The market transaction atmosphere is cold, and the DOP market is weak and consolidating this week.

Market situation of raw material products

According to the Commodity Market Analysis System of the Business Society, as of April 17th, the quotation for ortho phthalic anhydride was 8562.50 yuan/ton, a decrease of 0.72% compared to the price of 8625 yuan/ton on April 10th. The price of ortho benzene has stabilized, the cost of phthalic anhydride has stabilized, and the support for upward growth has weakened. Downstream demand is poor, and the market for phthalic anhydride has remained stagnant this week. In the future, the upward momentum of phthalic anhydride prices has weakened, and downward pressure still exists.

According to the Commodity Market Analysis System of the Business Society, as of April 17, the price of isooctanol was 9114.29 yuan/ton, a fluctuation decrease of 1.24% compared to the price of isooctanol on April 10, which was 9228.57 yuan/ton. This week, the production of isooctanol enterprises was at a low level, and the supply of isooctanol is expected to decrease. Demand side plasticizer enterprises have temporarily stabilized their production, and the weak and volatile consolidation of isooctanol will be the main trend in the future.

Downstream demand is weak

According to the Commodity Market Analysis System of the Business Society, as of April 17, the price of PVC was 5994 yuan/ton, a decrease of 1.20% compared to the PVC price of 6066.67 yuan/ton on April 10. The PVC spot market is relatively light, and the futures market has performed poorly. The overall market atmosphere is relatively empty, with insufficient confidence on the market. The inquiry atmosphere in the PVC spot market is weak, and the enthusiasm for buying goods is not good. PVC prices have fallen.

Future expectations

Analysts from Business Society’s plasticizer product data believe that this week, the prices of raw materials for plasticizer DOP, phthalic anhydride and isooctanol, have fluctuated slightly, resulting in a decrease in DOP costs. The upward support for DOP is not supported by increased downward pressure. On the demand side, PVC prices are weak and declining, downstream demand is weak, and downstream enterprises of plasticizers have poor purchasing enthusiasm. Overall, cost support weakens and demand is weak, while the plasticizer market is mainly weak and consolidating.

According to the analysis system of the commodity market of the Business Society, as of April 14th, the average price of PMMA, a general transparent and high-quality product in China, was 14775.00 yuan/ton. This week, PMMA prices were running smoothly, with no significant price fluctuations, and downstream procurement was mainly based on demand.

This week, the domestic general transparent grade premium product PMMA has been operating smoothly, while prices have remained stable compared to the same period last week. The purchasing atmosphere is cold, and downstream demand is insufficient. Currently, the quotation range of mainstream manufacturers is still around 15000 yuan/ton. The operating rate is stable, and the overall market supply and demand is balanced. The factory has given up profits and taken orders, and downstream purchases are just needed.

Rubber and Plastic Index: On April 13, the rubber and plastic index was 675 points, a decrease of 1 point from yesterday, a decrease of 36.32% from the highest point in the cycle of 1060 points (2012-03-14), and an increase of 27.84% from the lowest point of 528 points on April 6, 2020. (Note: The cycle refers to the period from December 1st, 2011 to the present).

PMMA analysts from Business Society believe that PMMA will maintain stable operation in the short term.

In the first quarter, the MIBK market experienced a rapid increase and continued to decline. The outbound price of tank trucks increased from 14766 yuan/ton to 21000 yuan/ton, with a maximum amplitude of 42% in the first quarter. As of April 5th, it fell to 15400 yuan/ton, a month on month decrease of 17.1% and a year-on-year increase of 8.83%. The market trend in the first quarter was mainly influenced by the significant reduction in domestic production and the strong factors of speculation. The rapid replenishment of import volume and the production of new devices eased the expected tight supply situation, as well as the limited acceptance of high priced raw materials due to the continuous downturn in demand. The MIBK market may enter a period of weak adjustment in the second quarter.

The sluggish demand has limited procurement of raw materials, and there may be plans to shut down major downstream antioxidants. The slow resumption of downstream work has a low demand for raw material MIBK, and the sluggish terminal manufacturing industry has limited acceptance of high priced MIBK. However, traders are under great pressure to ship, and under the expected difficulty in improving, actual orders on the market continue to decline, and transactions are mostly small orders that just need to be followed up. In the second quarter, there are still difficulties in increasing terminal demand, and there may be plans to shut down the antioxidant 4020 industry. With the prolonged decline of MIBK, the decline space is narrowing, and there is also a possibility of a phased pullback in the market for bargain-hunting and appropriate inventory. The spot trading strategy can rely on the commodity market analysis system of the business society. In the product spot strategy, the prices within the cycle are divided into five levels: high, medium high, medium, medium low, and low. Based on the current price position, the inventory trading strategy is guided

The import volume has been replenished sufficiently. It is reported that China’s imports to South Korea increased by 125% in January, and the total import volume in February was 5460 tons, an increase of 123% compared to the previous month. Affected by the tight domestic supply and the sharp rise in prices, the import volume increased significantly in the first quarter, which has a significant impact on the domestic supply side. In the second quarter, there was sufficient social inventory and the supply side remained loose.

From the perspective of the business community, the MIBK market rose sharply and fell sharply in the first quarter. Finally, due to the cold demand, the market price gradually returned to rational space. In April, the change of domestic supply was limited, but there may also be short-term accidental maintenance. At present, the enterprise has sufficient inventory, while imports may have a certain decline, and the overall supply declined slightly. However, in April, there was a serious lack of demand confidence, and due to cost factors, high priced raw materials resisted. As a result, the mentality of shippers also changed, resulting in an increase in profits and shipments. However, overall, there is a small amount of downstream inventory, and in order to maintain production demand, there may be restocking in the later stage. In the second quarter, as prices decline or there is bottoming out behavior, it is difficult for the demand side to improve in the second quarter, and there may be a shutdown expectation for antioxidants, resulting in poor demand. It is expected that MIBK will gradually reach its bottom in April and enter a weak adjustment period.

The acrylonitrile market continued to decline this week (3.24~3.31). According to data monitoring from Business Society, as of March 31st, the bulk water price in the acrylonitrile market was 10050 yuan/ton, a decrease of 2.66% from last Friday’s 10325 yuan/ton. At present, the self pickup price of acrylonitrile in the market is between 9800 to 10100 yuan/ton. The price of raw materials rebounded slightly, and the cost of acrylonitrile faced support; Supply side pressure continues and demand side support weakens; Acrylonitrile market is slightly weak.

This week (3.24~3.31), the domestic acrylonitrile operating rate is around 70%, and supply pressure continues

This week (3.24~3.31), the raw material propylene market rebounded slightly, and the cost of acrylonitrile encountered support. According to the monitoring of Business Society, as of March 31, the domestic propylene price was 7138 yuan/ton, an increase of 2.38% from last Friday’s 6972 yuan/ton.

Downstream ABS prices have slightly decreased, with industry equipment still operating at around 8.6%, slightly higher than last week, and there is still a strong demand for support for acrylonitrile; This week, the domestic production of nitrile rubber has remained stable, with weak support for acrylonitrile. The polyacrylamide market continues to be low, with weak support for acrylonitrile.

Future Forecast: Business Society Acrylonitrile Analysts believe that the current supply pressure of acrylonitrile is high, and there is no room for improvement in the demand side in the short term. It is expected that the acrylonitrile market will continue to decline slightly in the future.

According to the bulk list data of Business Society, the domestic TDI price trend continued to decline in March. At the beginning of the month, the average market price of TDI was 19500 yuan/ton, and at the end of the month, the price was 17700 yuan/ton. Within the month, it was reduced by 1800 yuan/ton, an overall decrease of 9.23%.

In March, the TDI market experienced a weak decline. Downstream demand continued to be weak during the month, market inquiries were sluggish, and the trading market atmosphere was cold. There was a lack of willingness to support prices, and the industry was bearish. In order to maintain the pace of shipment, the TDI offer continued to move downwards, with a clear sense of pessimism on the market. TDI prices continued to decline.

The upstream toluene market has declined, with a price of 7080 yuan/ton at the end of the month, a decrease of 230 yuan/ton compared to the price of 7310 yuan/ton at the beginning of the month, and an overall decrease of 3.15%. The cost of naphtha has significantly declined, and the price of raw materials has slid. The market for toluene has also declined, while downstream terminal demand is less than expected. According to market news guidance, the price trend of toluene is weak and downward.

According to the TDI data analyst from the Business Society, downstream demand for TDI is sluggish, the atmosphere for inquiries on the market is light, and the supplier’s mentality is pessimistic. The TDI quotation is weak, resulting in a stalemate between supply and demand on the market. It is expected that TDI will fluctuate and consolidate in the future, and specific attention will be paid to downstream follow-up.