Overview of Boric Acid Market

According to the Commodity Market Analysis System of the Business Society, the price of boric acid fell first and then rose in August, causing sideways fluctuations. As of August 23rd, the average price of boric acid in the domestic market was 7362.5 yuan/ton, an increase of 0.34% compared to the beginning of the month. However, compared to the beginning of the year, the average market price was 8100 yuan/ton, a decrease of 9.10%.

At present, the external quotation for imported goods is concentrated at 7000-8200 yuan/ton (the actual transaction price of different brands, specifications, and products is mainly negotiated). According to the Commodity Market Analysis System of Business Society, the average market price of imported boric acid is 7690.91 yuan/ton, an increase of 1.44% compared to the average market price at the beginning of the month.

Business Society Boric Acid Analysts believe that boric acid is gradually entering the long short game stage, with prices mainly fluctuating sideways.

According to the Commodity Analysis System of the Business Society, as of August 22, the average price in the Shandong market was 1994.00 yuan/ton, an increase of 0.25% compared to the price of 1989.00 yuan/ton on August 14.

On August 22nd, the petroleum coke commodity index was 155.09, an increase of 2.92 points compared to yesterday, a decrease of 62.05% from the cycle’s highest point of 408.70 points (2022-05-11), and an increase of 131.86% from the lowest point of 66.89 points on March 28th, 2016. (Note: The cycle refers to the period from September 30th, 2012 to the present)

The international crude oil market has been fluctuating and declining recently. On the macro level, the expectation of the Federal Reserve raising interest rates is putting pressure on the oil market. The supply and demand side has shown a stalemate in the game, and the tight supply situation continues. However, the North American driving season is gradually coming to an end, coupled with weak Chinese economic data, causing investors to worry about the future demand prospects.

Supply side: low inventory of petroleum coke in the refining coke warehouse at the port where a large amount of petroleum coke is shipped

The inventory of petroleum coke in domestic ports continues to decline. Recently, there have been fewer imported petroleum coke arriving at ports. In addition, downstream procurement is active, and import traders have a strong willingness to ship. The speed of port shipment is relatively high, and the inventory of petroleum coke in ports is still mainly destocking. Recently, the shipment of refined petroleum coke has been good, with overall low inventory in refineries and good downstream demand, driving up the price of refined petroleum coke.

On the demand side: terminal operating rate increases, demand increases

Recently, the spot price of metal silicon has continued to rise. As of August 18th, the number of silicon metal furnaces in China has reached 350, with an overall furnace opening rate of 48.75%, an increase of 5 units compared to the previous month. After the recent Universiade, production in Sichuan has gradually resumed, while overall production in Yunnan has remained stable, while the number of furnaces in Xinjiang has maintained an increase. The operating rate of metal silicon has slightly increased, providing slight support for the procurement of petroleum coke, with more demand being the main focus.

Recently, the overall market situation of calcined coke has remained stable. After the opening of aluminum factories in the southwest region, the demand for carbon for aluminum has improved, and the supply of electrolytic aluminum continues to increase, which is beneficial for the demand for petroleum coke; The enthusiasm for purchasing graphite electrodes and carburetors in the market is average.

Future prediction: Currently, the overall trading volume of Shandong’s refined petroleum coke is good, and the overall inventory of refined petroleum coke is at a low level, with good downstream demand. Recently, the overhaul of the refinery has ended, coupled with a large shipment of petroleum coke from the port, the market supply has increased, and downstream wait-and-see sentiment has increased, with on-demand procurement being the main focus. It is expected that the refining of petroleum coke in the near future will mainly undergo minor fluctuations and consolidation.

Recent price trends of isooctanol

According to the Commodity Analysis System of Business Society, the domestic tetrahydrofuran market price has temporarily stabilized this week. The average price of tetrahydrofuran in the mainstream domestic market this week is 12675.00 yuan/ton. Weekend prices fell by 14.36% year-on-year.

Upstream support is good, while downstream demand is average

From the supply side perspective, the prices of mainstream domestic tetrahydrofuran distributors are temporarily stable this week, with average inventory levels.

From the upstream raw material market of tetrahydrofuran, the market for 1,4-butanediol has slightly increased this week, with prices rising from 11350.00 yuan/ton at the beginning of the week to 11442.86 yuan/ton at the end of the week, an increase of 0.82%. Weekend prices increased by 12.60% year-on-year. The market situation of maleic anhydride has significantly increased this week, with prices rising from 6530 yuan/ton at the beginning of the week to 7020 yuan/ton at the weekend, an increase of 7.50%. Weekend prices fell 3.04% year-on-year. Overall, the upstream raw material market prices have slightly increased, with good cost support. Affected by the supply and demand side, it has a positive impact on the price of tetrahydrofuran.

From the downstream market situation of tetrahydrofuran, the spandex market price has stabilized at a high level this week. The price of spandex is 33625.00 yuan/ton. Weekend prices increased by 1.89% year-on-year. Downstream spandex market prices have stabilized at high levels, and downstream customers are actively purchasing tetrahydrofuran.

Future prospects

In late August, the domestic tetrahydrofuran market may experience slight fluctuations and gains. The upstream 1,4-butanediol and maleic anhydride markets have slightly increased, with good cost support. The downstream spandex market has stabilized at a high level, and downstream demand is good. Business Society tetrahydrofuran analysts believe that in the short term, the domestic tetrahydrofuran market may fluctuate slightly and rise mainly due to various factors such as supply and demand and raw materials.

According to the bulk list data of Business Society, the price of mixed xylene slightly decreased this week (8.11-8.19). On August 19th, the benchmark price of mixed xylene was 8470 yuan/ton, while on August 11th, the benchmark price was 8630 yuan/ton, a decrease of 1.85%.

The supply of mixed xylene is still relatively tight, providing support for the mixed xylene market. It is understood that as of August 18th, the inventory of xylene in East China decreased by 2000 tons to around 13000 tons; The inventory of mixed xylene in South China decreased by around 10000 tons to around 2000 tons.

International crude oil futures have slightly declined this week. As of Friday, the settlement price of the US WTI crude oil futures 10 contract was 79.90 US dollars per barrel, a decrease of 2.01%. Brent crude oil futures settled at $84.12 per barrel, a decrease of 2.13%. Due to the weak economic data in China and the instability of the banking industry in Europe and America, concerns about the global economic growth prospects have put pressure on crude oil, and crude oil prices have closed continuously lower. However, the decrease in crude oil supply from OPEC and Russia, as well as the improvement in energy demand, have played a supportive role in oil prices. In addition to the optimistic expectation of China’s oil demand growth, which continues to boost oil prices, during the summer demand peak season in the northern hemisphere, there are still positive factors for international oil prices. Thursday’s closing price rose, and overall, international oil prices are still at a high level.

In terms of downstream PX, the domestic supply of paraxylene is normal, with a domestic PX operating rate of over 70% and a relatively normal spot supply. This week, the trend of crude oil prices has declined, and PX external market has declined. As of the 17th, the closing prices in Asia were 1006-1008 yuan/ton FOB South Korea and 1031-1033 US dollars/ton CFR China. Recently, the operating rate of PX devices in Asia has not changed much. Overall, the operating rate of xylene devices in the Asian region is around 70%. The supply of PX goods in the Asian region has not changed much, and the external price of PX has slightly decreased. The domestic xylene market price situation is temporarily stable.

According to the Commodity Market Analysis System of Business Society, as of August 19th, the price of ortho xylene was 9000 yuan/ton, which remained stable overall. The external quotation of ortho xylene fluctuates and consolidates; The price of mixed xylene fluctuates and decreases, while the cost of ortho xylene decreases; The downstream market for phthalic anhydride has fluctuated and declined, while the downstream plasticizer market has consolidated strongly. Demand is mainly in demand, and the enthusiasm for transaction of ortho benzene is average. The starting point of ortho xylene is low, and the inventory of ortho benzene ports is low. The supply of ortho benzene is tight, and the ortho benzene market is stabilizing.

Due to the three consecutive declines in the crude oil market at the beginning of the week, the prices of refined gasoline and diesel have slightly declined, but overall, the prices are still at a high level. Recently, the operating load of refineries in China has been around 74%, and the utilization rate of atmospheric and vacuum capacity in refineries in China has risen to the highest level in two years. The operating rate in Shandong has slightly increased, and the overall operating rate has increased to around 67%. The supply of refined oil products in Shandong is relatively loose; The main domestic refineries maintain high load operation and high supply levels. Overall, there has been a slight increase in domestic refined oil supply, which is to some extent negative for the domestic refined oil market prices. Since mid August, the price of gasoline and diesel has not fluctuated significantly. In terms of gasoline, it is at the peak stage of summer tourism, with frequent private car travel and an expanded radius of travel. The high temperature in summer has increased the use of oil for car air conditioners, resulting in strong demand. The domestic gasoline market trend is relatively strong. In addition, the recent downstream replenishment mentality is still acceptable, and the main external procurement has increased. Refinery inventory has remained low, and various factors support strong willingness of merchants to increase prices.

Future Market Forecast: In the short term, international crude oil and naphtha costs will continue to support, and the tight supply of xylene will not decrease. However, downstream buying enthusiasm will weaken, and the market’s upward momentum will be weak. Overall, in the short term, mixed xylene prices will consolidate at a high level.

Price List of Ethylene Oxide in August

In August, the price of ethylene oxide increased. According to data from Business News Agency, as of August 17th, the average market price of ethylene oxide in China was 6200 yuan/ton; From a regional perspective, the average market price in North China is 6300 yuan/ton, East China is 6200 yuan/ton, Central China is 6200 yuan/ton, and South China is 6400 yuan/ton.

Overview of ethylene oxide industry chain

In July, the prices of the main downstream polycarboxylate water reducing agent monomers were strong, and the off-season effect was weak. Currently, supply and demand are still tightly balanced.

Supply side

Previously, the price of ethylene oxide was relatively low, and some manufacturers hit the cost line, facing increasing pressure to lose money. The operating rate of manufacturers was relatively low, and some enterprises underwent equipment maintenance. In addition, some production factories may switch to producing ethylene glycol or adjust their own usage ratio to alleviate production and sales pressure. Overall, there are frequent malfunctions in the ethylene oxide plant, leading to a tightening of market supply.

Cost side

From a cost perspective, the mainstream processes in China are divided into naphtha, ethane/mixture, external ethylene production, MTO route, etc; Among them, the naphtha route accounts for about 49% of the total, followed by ethane and externally extracted ethylene. With the rise of crude oil prices in July, the price of raw ethylene has strengthened, and the cost support for ethylene oxide is strong.

Ethylene oxide prices rose in August

In the short term, the cost support for ethylene oxide has strengthened, and with the transmission effect of upstream and downstream product prices, the price of ethylene oxide has improved. On the supply and demand side, under the increasing losses of ethylene oxide enterprises on the supply side, production enthusiasm is not high, external sales of enterprises are decreasing, and domestic supply is showing a tense situation. The downstream market support is relatively limited during the high temperature off-season on the demand side. In summary, the price of ethylene oxide may enter a plateau after rising in August.

Cobalt prices fluctuated and fell this week

According to data monitoring from Business Society, as of August 15th, cobalt prices were 268000 yuan/ton, a decrease of 4.76% compared to August 6th, when cobalt prices were 281400 yuan/ton. The import volume of cobalt raw materials has steadily increased, the cobalt market has sufficient supply, the sales of new energy vehicles have decreased month on month, downstream demand is weak, and the cobalt market has oversupplied. This week, cobalt prices have fluctuated and fallen.

Decline in sales of new energy vehicles

According to data released by the China Association of Automobile Manufacturers, in July, the sales of new energy vehicles in China reached 780000 units, a year-on-year increase of 31.6% and a month on month decrease of 3.23%. July is the off-season of the traditional car market, and the pace of production and sales has slowed down. The overall market performance is relatively flat, with a year-on-year decline. New energy vehicles and automobile exports continue to develop well, but sales have slightly decreased compared to June month on month. The sales of new energy vehicles have declined, the demand for cobalt in the market has declined, and the pressure on cobalt prices to decline has increased.

According to data released by the China Automotive Power Battery Industry Innovation Alliance, in terms of production, in July, China’s power battery production totaled 61.0 GWh, a year-on-year increase of 28.9% and a month on month increase of 1.5%. Among them, the production of ternary batteries was 20.4GWh, an increase of 17.2% year-on-year and 15.2% month on month; In terms of loading volume, in July, China’s power battery loading volume was 32.2GWh, a year-on-year increase of 33.3% and a month on month decrease of 2.0%. The installed capacity of ternary batteries was 10.6GWh, an increase of 7.4% year-on-year and 4.8% month on month. In July, the production and loading of ternary batteries showed varying degrees of increase compared to the same month on month, and the increase in ternary batteries was significantly higher than that of power batteries. The demand for ternary batteries rebounded, and the support for cobalt demand from ternary batteries still exists.

Overview and outlook

According to Bai Jiaxin, a data analyst at Business Society, against the backdrop of sufficient and stable supply in the cobalt market, the growth of demand in the cobalt market has become a weather vane for the trend of cobalt prices. In July, the sales of new energy vehicles decreased month on month, and the demand in the cobalt market has declined. However, the demand for ternary batteries has rebounded, and the support for cobalt market demand still exists. The expected decline in cobalt prices in the future will slow down, causing fluctuations and consolidation.

According to data from Business News Agency, the domestic maleic anhydride market has been on the rise this week. As of August 14th, the average market price of n-butane oxidation maleic anhydride remained at 6530.00 yuan/ton, an increase of 0.77% compared to the price of 6480.00 yuan/ton on August 7th, and an increase of 3.98% compared to the same period last month.

On August 14th, the maleic anhydride commodity index was 61.51, an increase of 0.84 points compared to yesterday, a decrease of 63.04% from the cycle’s highest point of 166.43 points (2021-12-15), and a rise of 20.18% from the lowest point of 51.18 points on April 14th, 2020. (Note: The cycle refers to the period from September 1st, 2011 to the present)

This week, the downstream resin market is in a low season and the market is basically stable. The resin downstream just needs to be restocked, and the resin manufacturers’ shipments are average, with limited replenishment of maleic anhydride. The international crude oil market is fluctuating and rising, with a significant increase in the raw material n-butane market and a rise in the maleic anhydride market in the second half of the week. As of the 14th, the solid anhydride in Shandong region is around 6500 yuan/ton, Jiangsu region is around 6500 yuan/ton, and South China region is around 6800 yuan/ton.

On the upstream side, the price of pure benzene has increased this week. On August 14th, the price of pure benzene was 7817.17 yuan/ton, and on August 7th, it was 7675.50 yuan/ton, an increase of 1.85%. The ex factory price of hydrogenated benzene in North China has increased. On August 14th, the price of hydrogenated benzene was 7916.67 yuan/ton, and on August 7th, it was 7783.33 yuan/ton, with a price increase of 1.71%. The market for n-butane has significantly increased this week, with prices in Shandong reaching around 5100 yuan/ton as of August 14th, with an overall increase of around 600 yuan/ton.

Business Society’s maleic anhydride product analysts believe that recently, domestic new units of maleic anhydride in Henan have started to be sold out, with a partial increase in domestic supply of maleic anhydride and a strong willingness for factories to sign orders; The market for n-butane in the upstream of maleic anhydride has significantly increased, driving up the domestic maleic anhydride market, with factory cost support, and downstream entry is just needed. It is expected that the maleic anhydride market will continue to rise in the near future.

According to the Commodity Market Analysis System of the Business Society, the domestic polyester staple fiber market showed a slight upward trend this week (August 7-11) driven by cost benefits. As of August 11, the average factory price of 1.4D * 38mm polyester staple fiber was 7651 yuan/ton, an increase of 0.44% compared to the beginning of the week.

The crude oil volatility is relatively strong, and concerns about supply tightening have driven the oil price to a nearly nine month high. As of August 10th, the settlement price of the main contract for WTI crude oil futures in the United States was at $82.82 per barrel, while the settlement price of the main contract for Brent crude oil futures was at $86.40 per barrel. Under low processing costs, there has been an unexpected increase in PTA device maintenance and a decrease in supply recently. This week, the domestic PTA market showed a slight recovery, with the average market price in East China as of August 11th at 5914 yuan/ton, an increase of 1.09% compared to the beginning of the week.

The downstream yarn market is still stable and wait-and-see, with a consolidation trend as the main trend. Most yarn factories and traders are calm and waiting for the peak season, and some yarn factories have taken low-priced restocking actions, resulting in a relatively slow increase in power. As of August 11th, the average price of pure polyester yarn in the Shandong region remained stable at 12775 yuan/ton, a year-on-year decrease of 10.66%. At present, yarn mills generally indicate that although inventory pressure is not high, they are somewhat cautious about the future market.

Analysts from Business Society believe that the strong prices of short-term raw materials will still provide favorable support for the polyester short market. Considering that the traditional peak season in September is approaching and downstream yarn orders are expected to improve, the polyester short staple market will continue to operate stronger in the short term.

1、 Price trend

According to the Commodity Market Analysis System of the Business Society, the average market price of ammonium sulfate in China was 1110 yuan/ton on August 4th, and 1070 yuan/ton on August 10th. This week, the market price of ammonium sulfate decreased by 3.60%.

2、 Market analysis

This week, the domestic ammonium sulfate market price fell back from a high point. This week, urea prices fell, negatively affecting the ammonium sulfate market. This week, the bidding price of ammonium sulfate has significantly decreased, and the focus of market transactions has declined. Ammonium sulfate is still available in the international market, with support for export orders. Downstream and distributors purchase cautiously and have a strong wait-and-see mentality. As of August 10th, the mainstream market quotation for coking grade ammonium sulfate in Hebei Province is around 1040-1100 yuan/ton. The mainstream factory quotation for domestic ammonium sulfate in Shandong is around 1020-1080 yuan/ton.

3、 Future Market Forecast

Analysts from the Business Society believe that the ammonium sulfate market has started to weaken recently, with a significant drop in high market prices and a limited decrease in low prices. At present, the market demand is stable, and the industry is mainly wait-and-see. It is expected that the short-term trend of ammonium sulfate prices will be mainly weak and downward.

From the monthly K-bar chart of bromine, it can be seen that the price of bromine has been showing a downward trend in the first half of 2023, and in July, the price experienced an increase of 12.22%.

According to the Commodity Analysis System of Business Society, the price of bromine has ended its decline since early July and has been rising all the way. At the beginning of July, the price of bromine was 18000 yuan/ton. On August 9th, the price of bromine was 23800 yuan/ton, an increase of 32.22%. As of now, the mainstream quotation for bromine in Shandong is around 23000-25000 yuan/ton, while the mainstream quotation in the North China market is around 24000-25000 yuan/ton.

On the supply side

With the arrival of the rainy season in July and August, seawater bromine manufacturers have reduced production, bromine production has decreased, and supply has decreased by about one-third. Data shows that the operating rate of bromine enterprises is currently less than 70%, with a month on month decrease of about 9.8%. In early July, bromine manufacturers continued to tentatively increase the price of bromine due to a decrease in production. However, downstream flame retardants and pesticide intermediates remained resistant to the rising price of bromine, and bromine companies were reluctant to sell. Bromine prices continued to rise.

Downstream aspect

Downstream flame retardants, pesticide intermediates, and other industries have recently started construction in general, with moderate demand and a focus on wait-and-see. Tetrabromobisphenol A, the mainstream offer is around 26000-26500 yuan/ton, with a single negotiation for more actual orders, average terminal demand, and insufficient price driving force. The supply and demand game shows that bromine companies’ shipments are not as good as last week. Market transactions are still mainly focused on just in demand procurement, and the industry’s mentality is lingering with the increase in quotation, with a wait-and-see sentiment.

Upstream product: Sulfur prices have risen, with an average market price of 713.33 yuan/ton in early July. On August 9th, the average market price was 933.33 yuan/ton, with a price increase of 30.84%. The inventory of manufacturers remains rational, with positive demand support from the end industry. The inventory of manufacturers is low, and the sulfur market has a strong upward trend. The supply and demand side is also positive, and it is expected that the short-term sulfur market will continue to be strong.

Analysts from Business Society believe that the price of bromine has been improving in the near future, while the downstream flame retardant and intermediate industries of bromine have shown moderate support. Data shows that the pharmaceutical intermediate industry is expected to undergo maintenance for 15-20 days. The spot supply of bromine is expected to decrease due to the rainy season, and the supply and demand of both parties are in a game. Downstream companies hope to find low-priced options, while bromine companies hope for high prices. Overall, it is expected that the market will slowly move up, depending on downstream market demand.