The price of plasticizers dropped significantly in March

According to the Commodity Market Analysis System of Shengyishe, as of March 22, the price of DOP was 10370 yuan/ton, a significant decrease from March 1′s DOP price of 11780 yuan/ton, a decrease of 11.97%; On March 22nd, the price of DOTP was 10475 yuan/ton, a significant decrease of 11.79% compared to the price of DOTP on March 1st, which was 11875 yuan/ton; On March 22nd, the DBP price was 9212.50 yuan/ton, a decrease of 4.16% compared to the DBP price of 9612.50 yuan/ton on March 1st. In March, the prices of plasticizers DOP and DOTP decreased significantly, while the prices of DBP decreased slightly; The price of high priced plasticizers has significantly decreased, while the price of low priced plasticizers has slightly decreased, and the price difference of plasticizers has weakened.

During the Spring Festival, the production of plasticizer manufacturers decreased significantly, dropping to around 50%. However, with the end of the holiday, the production of plasticizer manufacturers quickly recovered to around 70%. In March, the production of plasticizer enterprises reached a high level, and the supply of plasticizers was sufficient; Domestic PVC manufacturers are operating at a high level, with poor downstream demand support for PVC. The PVC market has high inventory levels, and PVC is expected to continue to enter the market. In March, the PVC market supported the demand for plasticizers, but with the arrival of the PVC Spring Festival maintenance season, the demand for plasticizers is expected to decrease. Adequate supply and poor demand have led to a significant decrease in plasticizer profits.

The price of isooctanol dropped significantly in March

According to the Commodity Market Analysis System of Shengyishe, as of March 22, the price of isooctanol was 11225 yuan/ton, a significant decrease of 9.66% compared to the price of isooctanol on March 1, which was 12425 yuan/ton. In March, the price of isooctanol fell unilaterally, and in March, the equipment of isooctanol enterprises resumed operation. The supply of isooctanol increased, and imported isooctanol arrived at ports from February to March, increasing the pressure on the supply of isooctanol; In terms of demand, downstream plasticizer manufacturers are operating at high loads, and there is an upward trend in demand for isooctanol. In addition, the increase in exports of isooctanol provides certain positive support for isooctanol. The supply and demand of isooctanol have increased, and the isooctanol market may remain weak. With the slow decline of inventory in the isooctanol market, the expected decline in the future isooctanol market is expected to slow down.

The price of n-butanol fluctuated and fell in March

According to the analysis system of n-butanol commodity market by Business Society, as of March 22, the price of n-butanol was 7733.33 yuan/ton, a decrease of 7.75% from the price of n-butanol on March 1, which was 8383.33 yuan/ton. During the Spring Festival, the overall downstream production of n-butanol has significantly declined, while n-butanol enterprises have maintained a relatively high level of production. The inventory of n-butanol has accumulated, and the import volume of n-butanol has increased. With the gradual return of downstream production of n-butanol, downstream stocking has increased, and the demand for n-butanol has rebounded. However, n-butanol inventory has remained high, coupled with the problem of n-butanol inventory accumulation in February, the n-butanol market is still oversupplied. With the continuous decline in the price of n-butanol, downstream customers have increased their willingness to stock on dips, and the trading volume of low-priced n-butanol has increased. At present, n-butanol manufacturers have a strong willingness to reduce inventory at low prices, and it is expected that n-butanol prices will operate weakly in the future.

Downstream PVC prices fluctuate and rise in an N-shaped pattern

According to the Commodity Market Analysis System of Shengyishe, as of March 22, the PVC quotation was 5654 yuan/ton, a slight fluctuation and increase of 0.82% compared to the PVC price of 5608 yuan/ton on March 1; The price of PVC has increased significantly by 1.58% compared to March 15th, with a price of 5566 yuan/ton. In terms of inventory, domestic PVC social inventory is high, PVC downstream production is low, order continuity is not strong, PVC manufacturers have a lot of inventory waiting to be stored, and PVC inventory continues to maintain high levels. In terms of operating rate, PVC manufacturers have a high operating rate, and spring maintenance has not yet started. Some enterprises are not actively engaged in maintenance, and the operating rate of PVC is higher than the same period last year. In terms of demand, the increase in domestic demand is limited, and PVC exports are exchanged for quantity at price. The overall demand for PVC in the market is weak, and inventory removal is slow. High priced PVC sources are still difficult to trade. In March, there is still support for PVC’s demand for plasticizers, but with the arrival of the PVC Spring Festival maintenance season, PVC manufacturers have lower expectations of starting production, leading to a decrease in PVC’s demand for plasticizers. The downward pressure on the demand side of plasticizers in the future is increasing.

Future expectations

Business Society plasticizer product data analysts believe that in terms of raw materials, the price of isooctanol has significantly decreased, the price of phthalic anhydride has fluctuated and fallen, the price of n-butanol has significantly decreased, and the cost of plasticizers has decreased. Subsequently, the expected decline in prices of isooctanol and n-butanol in the market has slowed down; In terms of supply, plasticizer manufacturers maintained a high level of production in March, with sufficient supply of plasticizers. With a significant drop in plasticizer prices, which is far greater than the decline in raw material products, plasticizer profits have decreased, and the enthusiasm of plasticizer manufacturers to start production has decreased. The expected operating load of plasticizer manufacturers in the future will decrease; In terms of demand, PVC has strong support for plasticizers in March, with PVC manufacturers operating at a high level and PVC social inventory at a high level. However, PVC demand growth is limited, and PVC inventory accumulation is severe; In April, PVC manufacturers had limited support for the demand for plasticizers. In addition, as April entered the traditional Spring Festival maintenance season, PVC manufacturers had increased expectations for maintenance, resulting in weak demand for plasticizers in the PVC market in the future.

In the future, the cost decline of plasticizers has slowed down, and supply and demand expectations have both decreased. However, plasticizer manufacturers are slow to destock, and the situation of plasticizer oversupply is difficult to change. Downstream customers have a strong resistance to high priced plasticizers, and it is expected that high priced plasticizer prices will fluctuate and fall in the future, while low priced plasticizer prices will mainly stabilize.

According to the Commodity Market Analysis System of Shengyishe, as of March 21, the average price of melamine enterprises was 7325.00 yuan/ton, a decrease of 0.68% compared to March 15 (the reference price of melamine was 7375.00 yuan).

During this period (3.15-3.21), the melamine market continued to decline, and the supply-demand contradiction in the market still existed. Small transactions were mainly in demand, and some companies were under pressure to ship, resulting in price reductions. On March 21, the mainstream ex factory price reference for melamine in East China was around 6600-6700 yuan/ton, with actual orders mainly negotiated.

Cost side: According to the analysis system chart of the commodity market in Shengyishe, the reference price for urea on March 20th was 2501.67, a decrease of 0.73% compared to March 1st (2520.00). Recently, the urea market in Shandong has slightly declined, providing moderate support for the melamine market. Short term cost side support may still be limited.

Supply and demand side: Some companies on the supply side are experiencing fluctuations in their equipment, and the industry is still operating at a high level of around 70%. The market supply is sufficient, but the demand side is following slowly. The downstream board market is mainly affected by the real estate industry, and the demand for melamine in the market is average. The demand side is generally weak, and companies are willing to offer more profits and take orders. The downstream procurement mentality is still cautious, and in the short term, the market supply is strong and the demand is weak, which may continue.

In summary, there is still insufficient short-term market support, but in the early stage, the price of melamine has continued to weaken, and companies have weak intentions to sell low. Downstream purchasing sentiment is cautious, and the market atmosphere is average. It is expected that in the short term, the melamine market may remain stagnant and wait-and-see. The specific trend still needs to pay attention to market news guidance.

The price of ethylene oxide slightly increased in mid March. According to data from Business Society, as of March 21st, the average market price of ethylene oxide in China was 6900 yuan/ton, an increase of 100 yuan/ton compared to before the holiday; From a regional perspective, the epoxy ethane market in East China is priced at 6700-6900 yuan/ton externally; The listed price of ethylene oxide in the South China market is 6900 yuan/ton; The listed price of ethylene oxide in North China is 6900 yuan/ton; The listed price of ethylene oxide in the central China market is 6800 yuan/ton.

At present, the domestic production of ethylene oxide has started relatively steadily, and there are expectations of tight supply in some regions. In the short term, there are some maintenance plans for individual units that need to be fulfilled.

Overview of the ethylene oxide industry chain

The prices of downstream polycarboxylate water reducing agent monomers have rebounded, and the prices of related products such as ethylene glycol have started to loosen recently. Overall, the demand for downstream monomers is average, while the demand for polyethers, esters, and other materials for purchasing ethylene oxide is good.

Future market forecast

The demand for downstream products of ethylene oxide may have positive expectations with the start of terminal real estate construction. The supply side is affected by factors related to production conversion, resulting in an improvement in supply expectations. However, overall, the downstream infrastructure industry is cautious about high priced monomers, and it is expected that the upward space is relatively limited, which may suppress the upward trend of raw material ethylene oxide. In the short term, it is expected that the price of ethylene oxide will continue to fluctuate strongly.

Product Name: PVC

Latest price: 5642 yuan/ton

Analysis point: On March 20th, the spot market price of PVC continued to rise. The significant increase in futures prices has boosted confidence in the spot market, with most manufacturers raising prices and distributors following suit, making it difficult to find low prices in the market. At present, the quotation for PVC SG5 is mostly around 5450-5790 yuan/ton. On site traders are relatively active, while downstream processing enterprises have a calm demand and are more cautious in market transactions.

It is expected that the PVC spot market will operate strongly in the short term.

1、 Price trend

According to the Commodity Market Analysis System of Business Society, the domestic tetrachloroethylene market has been operating steadily this week (3.11-3.15). The average market price at the beginning of the week is 5012 yuan/ton, and the average weekend price is 5050 yuan/ton, with a weekly increase of 0.75%.

2、 Analysis and Review

The price of tetrachloroethylene remained stable among major manufacturers this week, with mainstream prices ranging from 5000 to 5200 yuan/ton. Dealers closely follow the market’s upward trend, with tight supply and stable market operation. Due to the variety structure of downstream refrigerant R125, the production enterprise has a low quota and is mostly used for mixing. The enterprise has a strong reluctance to sell and a strong willingness to raise prices.

3、 Future Market Forecast

Business Society’s tetrachloroethylene analyst believes that demand continues to support, and it is expected that the tetrachloroethylene market will have the possibility of stabilizing and exploring an increase in the future.

Aluminum prices slightly rebounded at the end of the month

According to the Commodity Market Analysis System of Business Society, the average price of aluminum ingots in the East China market on March 15, 2024 was 19190 yuan/ton, an increase of 220 yuan/ton from the average market price of 18970 yuan/ton at the beginning of the month, with a monthly increase of 1.16%.

Macro positive aluminum price resonance

The expectation of the Federal Reserve’s interest rate cut in June is strong, and the non-ferrous sector continues to strengthen. As an international product with strong financial attributes, aluminum prices slightly rebounded in March.

Fundamentals of supply and demand: Strong supply-demand relationship

At present, the domestic aluminum ingot supply is at a historical high level, and the actual production is relatively large. Although the social inventory is lower than expected, it is mainly due to the significant increase in the proportion of aluminum water. There are rumors in the market that Yunnan will partially resume production in late March, but the probability of large-scale resumption in Yunnan is relatively low, as hydropower has not significantly increased and new energy installed capacity has grown rapidly. However, the promotion of electrolytic aluminum resumption is limited.

On the consumer side, downstream work continues to resume, and orders for other sectors except for building profiles are still available. Downstream aluminum rod production continues to rise, while the recovery speed of aluminum profiles and aluminum plates is slightly weak. The domestic meeting in March continues to release positive consumer sentiment.

Future Market Forecast

The traditional peak season for consumption is approaching, and downstream demand may improve. The production capacity and operating rate of aluminum profiles, aluminum cables, aluminum plates and strips, aluminum foils, primary aluminum alloys, and recycled aluminum alloys are gradually recovering with the resumption of production and work. The future spot trading is expected to improve from the current light trend. It is expected that aluminum prices will experience strong fluctuations in the short term.

The melamine market has declined this week. According to the Commodity Market Analysis System of Shengyishe, as of March 14th, the average price of melamine enterprises was 7375.00 yuan/ton, a decrease of 1.67% compared to Monday’s price.

Cost side: According to the analysis system chart of the commodity market of Shengyishe, the reference price of urea on March 13th was 2516.67, a decrease of 0.13% compared to March 1st (2520.00). Since March, the price of raw material urea has fluctuated and fallen narrowly, providing insufficient support for the melamine market.

Supply and demand side: Recently, the production capacity utilization rate of the melamine industry has been above 70%, and the industry has started at a high level. However, the demand side has not followed up enough, and the downstream intention to replenish demand is not strong. Many people hold a wait-and-see attitude, and the market’s new orders and transactions are average. The phenomenon of enterprises offering discounts and shipping is obvious, and the focus of negotiations in the melamine market is downward.

Melamine analysts from Business Society believe that there is still a short-term supply-demand contradiction in the market, lacking strong positive factors to support it. With a strong wait-and-see attitude, it is expected that the melamine market will be mainly weak in the short term, and more attention still needs to be paid to market news guidance.

According to the commodity market analysis system of Business Society, the price of cryolite in Henan region remained stable this week. On March 14th, the average market price in Henan region was 7600 yuan/ton, which is the same as the average price of 7600 yuan/ton on March 8th, with a month on month decrease of 0.33%.

This week, the ice crystal market remained stable and cautious, with stable prices for enterprises being the main focus. Upstream raw material fluorite mines face difficulties in starting production, and spot prices continue to be tight. The overall price is still at a relatively high level in the fluorite industry, and the cost pressure on cryolite continues. Most cryolite manufacturers have offered firm prices, while some companies have lowered prices to promote negotiations on the shipment of cryolite. The overall market is stable. At the same time, downstream parties have a resistance to cryolite prices, and they follow up with more purchases as needed. The market trading atmosphere is average, and the cryolite market is wait-and-see. As of March 14th, the ex factory quotation for cryolite in Shandong region is 7000-8600 yuan/ton; The factory quotation for cryolite in Henan region is between 7200-8200 yuan/ton.

The upstream fluorite market has slightly increased, with an average market price of 3356.25 yuan/ton on March 14th, an increase of 0.19% compared to the price of 3350.00 yuan/ton on March 8th. The game situation in the domestic fluorite industry still exists, and the operating rate of enterprises remains low. In addition, fluorite mining enterprises are facing increasingly strict safety and environmental requirements, making it more difficult to operate fluorite mines. The shortage of raw materials has restricted the operation of fluorite enterprises. Downstream procurement is mostly followed up on demand, and market trading is limited. The fluorite price market is observing and consolidating.

Market forecast: The supply of ice crystal raw materials is tight, the cost of ice crystal is high, and the on-site ice crystal quotation continues to be strong. Downstream purchasing enthusiasm for entering the market is insufficient, and buyers follow up on demand. Manufacturers have limited shipments, and the mentality of operators is not good. It is expected that the ice crystal market will be adjusted downward in the future, and attention will be paid to upstream price changes and downstream follow-up in the future.

According to the commodity market analysis system of Business Society, the price of acetic acid has recently risen. On March 13th, the average market price of acetic acid was 3100 yuan/ton, an increase of 50 yuan/ton compared to the price of 3050 yuan/ton on March 7th, an increase of 1.64%, and a decrease of 6.06% compared to the previous month.

Recently, the acetic acid market has been relatively strong and rising. Last weekend, the factory’s shipments were smooth, and the company’s inventory decreased. With the resumption of upstream and downstream operations, there was an increase in restocking in the market. The market trading atmosphere was good, and the quotation of acetic acid manufacturers was raised. However, downstream demand was limited, and the enthusiasm for on-site procurement slowed down, resulting in a stable operation of acetic acid prices.

As of March 13th, the market prices of acetic acid in various regions are as follows:

Region/ March 7th/ March 13th/ Rise and fall

South China region/ 2975 yuan/ton/ 3025 yuan/ton/ fifty

North China region/ 2975 yuan/ton/ 3050 yuan/ton/ seventy-five

Shandong region/ 3050 yuan/ton/ 3100 yuan/ton/ fifty

Jiangsu region/ 2925 yuan/ton/ 2975 yuan/ton/ fifty

Zhejiang region/ 3025 yuan/ton/ 3075 yuan/ton/ fifty

The upstream raw material methanol market first rose and then fell. On March 13th, the average price in the domestic market was 2701.67 yuan/ton, a decrease of 0.37% compared to the price of 2711.67 yuan/ton on March 7th. The maintenance and production reduction of methanol plants are significant, resulting in a decrease in capacity utilization and a favorable supply side. Methanol prices have increased, but downstream main factories have shut down, resulting in insufficient demand support and a decline in methanol prices due to the impact of demand.

The downstream acetic anhydride market continues to rise. On March 13th, the factory price of acetic anhydride was 5512.50 yuan/ton, an increase of 3.28% compared to the price of 5337.50 yuan/ton on March 7th. The price of acetic acid has rebounded, the cost of acetic anhydride has increased, the inventory of acetic anhydride manufacturers is low, and downstream demand is mainly in demand. Under the favorable cost situation, the price of acetic anhydride has risen accordingly.

In the future market forecast, the acetic acid analyst from Shengyishe believes that although there is an upward trend in the price of acetic acid, the overall market capacity utilization rate is high, and the on-site supply is sufficient. Downstream purchasing is mainly based on demand, with limited on-site trading. Under the supply-demand game, it is expected that the short-term acetic acid market will remain stable and wait-and-see, and attention will be paid to downstream follow-up in the future.

According to the Commodity Market Analysis System of Business Society, the PP market experienced a narrow range of fluctuations in early March, with prices of various wire drawing brands adjusting narrowly. As of March 12th, the mainstream quoted price for T30S (wire drawing) by domestic producers and traders is around 7707.14 yuan/ton, which has basically fallen back to the price level at the beginning of the month.

Cause analysis

Industry chain: In terms of PP raw materials, the price effect has been diluted due to the reduction of international crude oil OPEC production and the tense news of Red Sea shipping in the early stage, which has recently loosened support for the high cost of oil to PP production. After the rise of propylene, downstream demand was suppressed and entered a downward trend, with a moderate impact on PP. In terms of PDH, propane continues to fluctuate narrowly and its price remains relatively stable. The methanol market is also relatively stable. The upstream raw materials are generally stable, and the overall support for PP is relatively weak.

Overall, the raw material industry is generally average, with slight loosening of support for the PP cost side. In terms of industry load, the average industry load is over 76%, and there has been a recent return of some production lines. At the same time, new production capacity will be implemented and discharged in March, with an expected increase in production. The market supply of goods remains abundant, and the inventory digestion situation last week was still good, but the overall inventory position is still high, with slightly greater pressure on on-site supply. In terms of demand, the basic return of end enterprises has been completed, and the comprehensive operating rates of downstream PP enterprises such as plastic weaving, film materials, and injection molding are about 39%, 64%, and 52%, respectively, with no significant improvement. The replenishment operation of enterprises is average, and the trading atmosphere on the exchange is not strong. The overall market for wire drawing materials is mixed, with a dilemma of ups and downs.

In terms of fiber materials, according to the commodity market analysis system of Business Society, as of March 12th, the spot price of domestic fiber PP has also increased. The mainstream quoted price for domestic producers and traders of Z30S (fiber) is around 7525 yuan/ton, with an increase or decrease of+0.17% compared to the average price at the beginning of the month, and a decrease of 4.34% compared to the same period last year. Recently, the main downstream non-woven fabric enterprises of PP fiber materials have seen an increase in load, with operating rates increasing by about 2% to 23% compared to the beginning of the month, and operating levels remain at a low level. The digestion speed of end products is sideways, and the demand for non-woven fabrics in the market is mainly based on contracts. The support for fiber material prices is average, and it is expected that the fiber material market will continue to consolidate.

In terms of melt blown materials, the melt blown PP market has recovered this week. As of March 12th, the average quotation of domestic melt blown material sample enterprises monitored by the Commodity Market Analysis System of Shengyishe is about 7975 yuan/ton. Compared with the average price level at the beginning of the month, the increase and decrease is -0.31%, and there is a decrease of 12.68% compared to the same period last year. At present, the demand for facial protection in China is generally high, and the consumption of medical melt blown fabric materials is not significantly driven. There is also no significant boost in domestic and foreign demand. In addition, downstream factories have a low load, resulting in new orders leaning towards loose orders. It is expected that the melt blown material market will continue to be weak and stable.

Future Market Forecast

PP analysts from Business Society believe that the polypropylene market remained stable and volatile in early March. The overall trend of upstream raw materials is average, and the support from the cost side for the market is narrow and loose. The resumption of work by terminal enterprises did not meet expectations, and their willingness to stock up was not strong. There is a plan for the return of PP maintenance equipment in the near future, and there are also production facilities. There is an expectation of increased supply in the future. The current resistance to PP consumption is relatively high, and the supply side is under pressure. It is expected that the PP market will enter a weak consolidation period in the short term.