Monthly Archives: June 2019

Can the seasonal rise of PVC come as scheduled?

After a sharp decline in May, the domestic PVC market gradually stabilized and rebounded in June. Seasonal trend shows that there will be seasonal upward trend from the end of June to the middle of August in recent years. Under the background of increased peripheral pressure in 2019, can we get out of the seasonal upward trend again?


1. Supply keeps a low growth rate and supply pressure is relatively limited.

Since 2019, production capacity has been put into operation, including Shaanxi Beiyuan, Shanxi Ruiheng, Ningxia Jinyuyuan, Taizhou, a total of 700,000 tons, and there are still 740,000 tons of plant planned to be put into operation in the later period.

In terms of output data, the cumulative output in January-May 2019 was 790.307 million tons, an increase of 1.28% over the same period last year. Due to the high amount of spring overhaul in the year, the loss of spring overhaul (April-July) increased by about 200,000 tons compared with 2018. For the whole year, if the level of monthly maintenance in the later period is roughly the same as that in 2018, the growth rate of supply in the whole year will be about 3%.

From the point of view of overall supply and demand, although the demand performance is not good, the expected demand still maintains a year-on-year growth trend. The probability of tight balance between supply and demand throughout the year is higher. Serious imbalance between supply and demand is not expected. The price fluctuation range is expected to be the same as in 2018. The seasonal peak seasonal rise in 2018 started at the end of June and reached around 7500 in early August. The expected seasonal rise still exists in the year, but the rising space is expected to be lower than that in the third quarter of 2018.


2. Stop the Spot Drop and Stay Steady, Transaction Volume

From the perspective of PVC basis difference, the base difference has changed from strong to weak since mid-June, and futures are almost flat. After the end of the overhaul in July, construction starts to pick up, the pressure on the spot supply will increase, and futures may weaken in the latter period due to the expectation of the peak season.

3. The peripheral situation eased and market confidence resumed.

Influenced by the good news from Sino-US trade, the trend of commodities stopped falling and rebounded, the market was expected to restore, and the impact of PVC also rebounded. At the same time, considering the seasonal trend, the current time node has the expectation of gradually building the bottom. If the macro-level is stable in the later period, then in chemical products, because of the balance of supply and demand, it can be used as a multi-head configuration in chemical products.

4. Housing start-up data performed well and expectations remained in peak season.

From January to April, the new housing construction area was 58.552 million square meters, up 13.1%, and the growth rate increased by 1.2 percentage points. Among them, new residential construction area of 433.35 million square meters, an increase of 13.8%.

From the perspective of real estate data, the demand for PVC in September is still supported by the start of real estate construction from January to April, but the support for the 2001 contract is relatively limited.

Azodicarbonamide (AC foaming Agent)

5. Summary

From the perspective of the supply and demand pattern of PVC, the supply side in the first half of the year hedged the supply increment brought about by the putting into operation of some production capacity because of the much higher spring overhaul volume than the same period in previous years. It is estimated that the supply growth rate will be 1.58% in January-June and 3.3% in the whole year. On the demand side, the growth rate of demand is expected to be weaker than that of the past two years, but the growth trend is maintained. Supply and demand are expected to maintain a tight balance throughout the year. Prices are expected to rebound in the peak season of the third quarter, but it is difficult to break through the 2018 high in the year. The 09 contract can try to do more at the low. Long-term fundamentals, demand-side as a result of the downward trend of real estate is difficult to change, in the late sales end to start, will play a restraining role in the long-term demand, the 2001 contract can be empty run.

Urea market is temporarily stable and phosphorus fertilizer market is light

With the end of summer fertilizer, domestic fertilizer market has entered the off-season, and there is still a period of time before autumn fertilizer, and the turnover of domestic fertilizer market has slowed down. Industry insiders expect that after July, manufacturers will introduce preferential policies, autumn fertilizer will be opened, and compound fertilizer manufacturers will also start autumn fertilizer production.

Analysis I

Urea market is temporarily stable

According to the reporter, the harvest of wheat in the north is over, the planting of maize is near the end, the fertilizer of maize is over, the new demand has not yet formed, and the fertilizer market is in the period of consolidation. In view of the special stage of agricultural production, the market has limited pull on the fertilizer market, and the price of urea products is stable. At present, the mainstream factory quotation of small particles in North China is 1910-1920 yuan/ton, and that of large particles is 1910 yuan/ton, which is expected to be difficult to adjust dramatically in the short term.

According to Han Haixia, general manager of Henan Xinye Haifeng Agricultural Science and Technology Co., Ltd., the fertilizer market has ended in summer. Next, the northern crop areas will enter the off-season of fertilizer use. Only vegetables, melons and fruits and other crops have a small demand for fertilizer. She said: “At present, the main concern is the autumn fertilizer market, manufacturers have held orders, manufacturers mostly in the form of interest-bearing to let distributors pay. The manufacturers are worried about the pressure of centralized shipment in September, and have started to move goods from sporadic to sporadic. According to past practice, in July, with the autumn fertilizer being put into production, the price of raw materials such as nitrogen, phosphorus and potassium may be increased, but the increase should not be too large.

According to Huang Hua, the business manager of Sirte Fertilizer Industry in Anhui Province, the market as a whole is in a wait-and-see stage, and the purchasing volume of urea, diammonium and compound fertilizer by distributors is extremely limited.

It is also understood that India’s MMTC company issued urea quota tender information, opening on July 1 and closing on July 8. This news has a certain boost to the confidence of domestic urea market, the market mentality has improved, Urea Export is expected to ease the inventory pressure of enterprises.

Sodium Molybdate

Analysis II

Phosphate Fertilizer Market Trading Light

At present, the phosphate fertilizer market is in a gap period of demand. At present, there is no demand for Northern agriculture. Some distributors begin to prepare fertilizer in autumn. However, most distributors hold a wait-and-see attitude, with few new orders and few transactions. Some manufacturers have lowered their prices, but the market is still dominated by acquisition-and-purchase mode. On the export market, international traders are not active in purchasing, and the FOB price of domestic diammonium exports continues to fall. Ammonium market is also weak, 55% of ammonium powder factory quotation in 2000-2200 yuan/ton, general goods, enterprises digest pre-order, it is expected that the short-term price without demand support is insufficient upward momentum.

According to the data of 23 provinces monitored, the wholesale price of domestic diammonium phosphate remained stable on the whole. Among them, the price of Tianjin shows a rising trend, rising by 100 yuan/ton; the prices of Henan, Hubei and Xinjiang show a declining trend, falling by 15-37.5 yuan/ton, Henan Province has a large decline, while the prices of other provinces remain stable. The retail price of domestic diammonium phosphate remained stable. Among them, prices in Henan, Hubei, Sichuan and Xinjiang all showed a downward trend, falling by 23.9-83.4 yuan/ton, while prices in other provinces remained stable.

It is also reported that in the export market, although there are outflows of procurement tenders in the Indian Peninsula and Bangladesh markets, the buyer’s intention to bid is weak due to the downward price of the international market, the buyer and seller are still in a stalemate, and the domestic export price of diammonium is US$340/ton FOB.

As the domestic and international markets are in a downward trend, it is expected that there will be no turning point in the phosphate fertilizer market in the short term.

Analysis III

Compound fertilizer is valuable but not marketable

This summer fertilizer performance is still acceptable, grass-roots sales are relatively smooth. According to Han Haixia, 45% sulfur-based compound fertilizer and 45% chlorine-based compound fertilizer are sold at 2500 yuan/ton and 2100 yuan/ton in Henan market. She said that the local planting structure changed greatly this year. Many corn growers changed to grow peanuts, soybeans, sorghum and other crops, resulting in a sharp reduction in the area of corn planted this summer. Overall, however, the fertilizer market sales this summer were basically flat compared with previous years.

In addition, she said that in recent years, farmers have also changed their fertilizer use structure. Among them, the sales of special fertilizer are increasing year by year. Firstly, cash crop growers use special fertilizer to cover a large area. At the same time, some field crop growers have gradually attached importance to soil structure adjustment and began to apply special fertilizer.

Benzalkonium chloride

With the end of the fertilizer season in summer, the market demand for compound fertilizers is weak, and the price of compound fertilizers is in a state of no market. It is understood that the current 45% potassium sulfate compound fertilizer factory price is as low as 2180 yuan/ton. In view of the weak market demand, the compound fertilizer manufacturer began to take turns to repair the production line, and the production start-up rate was low.

Huang Hua said: “Although dealers are watching, in fact, the enterprise’s plan is in an orderly way. Starting from mid-June, manufacturers began to organize various meetings for the autumn fertilizer market, but at present only some distributors pay money, and delivery has not yet been carried out.

Huang Hua believes that according to past years’experience, the autumn fertilizer reserve will start in mid-July, but this year there will be less rain in Shandong, and it is difficult for some areas to plant fertilizer at the same time. It is expected that there will be a wave of demand for fertilizer in the later period. He said: “The specific future market depends on the policies of the manufacturers. Generally speaking, the price is relatively moderate, not too high or too low. The specific policies of the manufacturer on compound fertilizer will be announced in July, and the market will be clearer then.

To sum up, Feicheng City recently recess period, in addition to cash crop areas, grass-roots sales are light. There is still a period of time before autumn fertilizer, and distributors are waiting for manufacturers to introduce preferential policies. Later, the domestic fertilizer market will not have too much turbulence, the focus of the fertilizer market will focus on the export market.

China-Japan-ROK Cooperation Can Relieve the Asian Premium of Natural Gas

Recently, as a buyer’s representative, Li Yalan, chairman of Beijing Gas Group, said at the G20 Natural Gas Day in Tokyo, Japan, that the long-term existence of LNG Asian premium would seriously limit the sustainable development of Asian natural gas market. “At present, the global natural gas market resources have entered a period of oversupply. With the increase of the number of sellers, the market competition becomes more intense.


It is understood that the “Asian premium” of natural gas refers to the lack of pricing power, which results in higher prices of natural gas (mainly LNG) traded in Asian markets than those in North America and Europe. Asian countries, especially those in Northeast Asia such as China, Japan and Korea, are forced to pay higher import costs of natural gas for a long time.

Data show that in 2018, the average annual spot price of LNG in Henry Hub and NBP is US$3.16 and US$8.05 per million British heat units respectively, while the average import price of LNG in Northeast Asia is US$9.41, and the market price ratio of US, Europe and Asia is 1:2.5:3. Thus, compared with the North American and European markets, LNG prices in Asian markets are generally higher.

LNG exporters increased from 12 in 2000 to 21 in 2018, Li Yalan said. Asian market leading buyers have changed from traditional buyers such as Japan and South Korea to emerging market countries such as China and India, which have large volume, great potential for development and diversified natural gas supply channels.


She further said that Asia was the main growth engine in the global gas market. In 2018, Asia accounted for 20% of global natural gas consumption and 32% of global natural gas consumption growth. Global LNG trade growth mainly comes from Asia. By 2030, Asian consumption will account for 24% of global total, and 60% of global LNG demand growth will come from Asia.

The Natural Gas Market Report 2019 released recently by the International Energy Agency (IEA) points out that global demand for natural gas will continue to grow in the next five years, with the significant increase in gas consumption in Asian economies and the gradual improvement of the international natural gas trading system. In 2018, global natural gas demand grew by 4.6% year-on-year, the highest growth rate since 2010. Global natural gas consumption accounts for about half of primary energy growth. Over the next five years, the global demand for natural gas will grow by more than 10% annually, and the annual consumption of natural gas will exceed 4.3 trillion cubic meters by 2024.

Azodicarbonamide (AC foaming Agent)

“The time is ripe to eliminate the Asian premium.” Li Yalan suggested that first, China, Japan and South Korea should strengthen cooperation to study and analyze the causes of high premiums and avoid premiums in new contracts; secondly, the buyer should have full trust so that the seller can fully understand, evaluate and adjust the current market environment; thirdly, the seller should take the initiative to reduce costs and share low-cost Dividends with the buyer; fourthly, eliminate “non-negotiable payment, destination and resale”. Limit”and increase the price review mechanism to help buyers reduce risks and achieve win-win situation.

It is reported that the G20 Natural Gas Day is a special meeting on natural gas under the framework of the G20, aiming to provide a dialogue platform for leaders of international organizations, industry leaders and policy makers on the development of the natural gas industry, and to provide ministers of energy of the G20 with the latest trends, market views and professional suggestions on the development of the natural gas industry.

U.S. crude oil inventories fell sharply and international oil prices rose sharply on the 26th

Influenced by last week’s sharp decline in U.S. oil inventories, international oil prices rose significantly in the morning of the 26th, declined in the afternoon and rose significantly at the end of the day.

On the same day, the price of light crude oil futures for August delivery on the New York Mercantile Exchange rose to $59.93 a barrel after the release of U.S. crude oil inventory data, while London Brent crude oil futures for August delivery hit a mid-day high of $66.85 a barrel.

U.S. commercial oil stocks fell by 12.8 million barrels last week, 5% higher than the average level in the past five years, according to data released by the U.S. Energy Information Agency on the 26th. The decline was much higher than the 3.1 million barrels decline in the previous week, the largest decline since September 2016.

Over the same period, vehicle gasoline stocks fell by 1 million barrels annually, distilled oil stocks by 2.4 million barrels annually, and propane and propylene stocks increased by 1.4 million barrels annually. Commercial oil stocks, including commercial crude oil, refined oil, propane and propylene, fell by 11.9 million barrels last week.

Data show that the average daily import of crude oil in the United States last week was 6.7 million barrels, a decrease of 812,000 barrels compared with the previous week. The average daily crude oil processing capacity of refineries was 17.3 million barrels, an increase of 73,000 barrels compared with the previous week. The refinery operation rate was 94.2%, higher than 93.9% in the previous week.

Sodium Molybdate

In addition, the average daily output of U.S. crude oil last week was 12.1 million barrels, an increase of 100,000 barrels annually, while the average daily export volume of crude oil increased to 3.77 million barrels.

According to data released late on the 25th by the American Petroleum Association, commercial crude oil fell by 7.55 million barrels last week, gasoline stocks fell by 3.17 million barrels, while distilled oil stocks increased by 160,000 barrels annually.

Phil Flynn, senior market analyst at PRICE Futures Group in the United States, said on the 26th that it seemed that the rise in U.S. oil inventories in the past few weeks had ended and that it was time for returns. The decline in crude oil inventories may be a sign of over-confidence in supply, with oil prices rebounding sharply as demand exceeded expectations in the United States and China.

According to a report released by JBC Energy Austria on the 26th, the rise in international crude oil prices on the 26th is likely due to a sharp drop of 7.5 million barrels in U.S. commercial crude oil inventories last week, according to inventory data released by the American Petroleum Association.

John Kilduff, partner of Again Capital Management, said the oil inventory report released on the 26th was one of the best reports. Domestic production was declining, demand for gasoline was strong, exports fell sharply, and refinery start-up rate increased, all of which constituted a positive factor.

In addition, PES, the largest and oldest refinery on the east coast of the United States with a daily processing capacity of 330,000 barrels, could be permanently closed, which would have an impact on the U.S. gasoline supply.

Benzalkonium chloride

Andy Lipow, president of Lipow Petroleum Co., said that all the unused products of the United States will be exported. With the increase of domestic production, the oil products available for export will increase, and world oil demand will continue to grow. The United States will not only meet new demand, but also fill the gap created by the decline in exports of Iran and Venezuela. As PES refineries shut down, oil prices in Philadelphia and New York will rise significantly in the coming weeks until new supplies emerge, he said, and the price of a gallon of oil will rise by $0.1.

By the end of the day, light crude oil futures for August delivery on the New York Mercantile Exchange had risen $1.55 to $59.38 a barrel, or 2.68 per cent. On the same day, London Brent crude oil futures for August delivery rose $1.44 to $66.49 a barrel, an increase of 2.21%.

Limited Upward Height of Methanol

Oversupply remains unchanged

Under the combined effect of rising crude oil prices, easing economic and trade frictions and falling market interest rates, methanol prices began to rebound at the bottom in early June. Methanol futures rose to 2,429 yuan/ton on Friday, up 8.44% from the low on June 6. However, judging from the two trading days before this week, the 60-day average is more repressed.


Safety Inspection Causes Small and Medium-sized Enterprises to Reduce Load Production

Since the third quarter of 2018, methanol prices have been declining unilaterally, and the operating conditions of manufacturing enterprises have continued to deteriorate. At present, the profits of coal-to-methanol production enterprises are 300-400 yuan/ton, while those of natural gas-to-methanol production enterprises in Southwest China are in a loss state. In view of this, the supporting role of cost-side on methanol price began to appear, and the recent rise in methanol price was largely caused by the profit recovery of methanol production enterprises.

Recently, the start-up load of intensive overhaul units in methanol production enterprises has dropped from 71.7% to 67.4%. The decline in supply is an important reason for price rebound. However, according to the announcement, from the end of June to July, the pre-maintenance devices will be reworked one after another, involving capacity of 5 million tons per year.

However, last weekend, Shandong released the Implementation Plan of the Special Regulation Action for Safety Production in the Chemical Industry and Chemical Parks of the Province, which began to check the safety situation of chemical enterprises in the province. For those enterprises that do not comply with the safety regulations, they are required to rectify within a specified time limit, and if they fail to rectify on time, they will be shut down. This could reverse expectations of oversupply.


As we all know, Shandong is the main methanol producing area in China, and its production capacity accounts for 10% of the total national production capacity. Moreover, some methanol production enterprises in Shandong Province are small in scale, and the problems in safety inspection are prominent. The start-up load of enterprises is bound to decline, which will help to alleviate the problem of excess supply of methanol in the methanol market. However, the inspection is aimed at Shandong Province. Shandong Province has not only methanol production enterprises, but also many traditional downstream methanol enterprises. These enterprises are also small in scale, and the safety and environmental protection supporting devices are not perfect. It can be said that the safety inspection in the short term will cause the market to worry about the supply of methanol in the later period, and play a supporting role for the price of methanol, but the long-term impact is more complex.

Deposit at the port will come to an end

Since March, methanol prices have continued to decline, accelerating the process of port inventory. As of June 20, port methanol stocks stood at 1047.2 million tons, down 92.0 million tons, or 8.08%, from the beginning of March when methanol prices began to fall. Among them, the port inventory was 671,000 tons, down 192,000 tons from the beginning of March, a decline of 22.25%; the mainland (Northwest, Central China, North China, Southwest, Northeast) inventory was 376,200 tons, up 67,500 tons from the beginning of March, an increase of 21.87%.

However, at present, the import arbitrage window is open, and the market expects that the domestic arrival in July will be large, the supply pressure in East China will increase, and the process of port inventory will come to an end, which will lead to pressure on methanol prices.

At the same time, although downstream coal-to-olefin plants such as Nanjing Zhicheng are expected to put into operation, the overall demand for methanol is difficult to improve in the off-season of traditional downstream consumption, and the problem of market oversupply will not change in a short time.

Azodicarbonamide (AC foaming Agent)

Future Market Forecast

In the short term, methanol prices will continue to rise due to changes in the surrounding market climate and the impact of Shandong security inspection. However, due to the current situation of oversupply, the upstream height is limited, and short-term buying is the main operation. If the price can rebound to 2500 yuan/ton, then try short.

Azerbaijani Support for Extension of Oil Production Reduction Agreement

According to Reuters St. Petersburg, Azerbaijani Energy Minister Parviz Shakhbazov said he supported the extension of the current global oil production reduction agreement, which expires at the end of June.

Earlier, OPEC and other major oil producers agreed to reduce their total oil production by 1.2 million barrels a day between January 1 and the end of June 2019 to balance the oil market.

They will meet in Vienna from 1 to 2 July to formulate joint policies for the second half of the year.

Sodium Molybdate

Shakhbazov told reporters in a commentary on Monday: “I think this form, these decisions and the agreement reached at the end of last year to cut production in the first half of this year should continue.”

He added that he did not know whether other countries opposed the continuation of the agreement, which would expire at the end of this month, and that Azerbaijani was one of the non-OPEC producers that had joined the agreement.

Benzalkonium chloride

China’s domestic price trend of p-xylene was temporarily stable on June 25

On June 25, the PX Commodity Index was 58.40, unchanged from yesterday, down 42.97% from its peak of 102.40 points in the cycle (2013-02-28), and up 28.21% from its low of 45.55 points on February 15, 2016. (Note: Period refers to 2013-02-01 to date).


According to statistics, the domestic market price trend of p-xylene was temporarily stable on the 25th. Pengzhou Petrochemical Plant operated steadily in the field. Urumqi Petrochemical Plant started 50% of its operation. Fuhai Created Aromatic Hydrocarbon Plant started one line. CNOOC Huizhou Refinery and Chemical Plant overhauled. Hengli Petrochemical PX Plant went into operation. Other units operated steadily temporarily. Since the new plant was put into operation, the domestic market for p-xylene was normally supplied. The price trend of toluene market is stable for the time being. The opening rate of PX plant in Asia is about 80%. The closing price of PX plant in Asia is 9.5 US dollars/ton on June 24. The closing price is 816-818 US dollars/ton FOB Korea and 835-837 US dollars/ton CFR China. More than 50% of PX plant in China need to be imported. The rise of foreign price has a positive effect on domestic market price of paraxylene. The price of paraxylene in Asia is stable temporarily.


On June 24, the price of WTI crude oil in August rose to 57.90 US dollars per barrel, an increase of 0.47 US dollars. Brent crude oil in August fell to 64.86 US dollars per barrel, a decrease of 0.34 US dollars. The rising trend of crude oil price has a cost supporting effect on the price of downstream petrochemical products. The price trend of paraxylene market is temporarily stable. Recently, the textile industry has stabilized temporarily, PTA price has risen on 24 days. The average price of East China is raised near 6050-6150 yuan/ton. As of 24 days, the domestic PTA start-up rate is about 93.5%, the polyester industry start-up rate is about 90%, and the downstream production and sales rate remains high. However, PTA market price shocks, and the price of PX market is expected to remain volatile in the later period.

Azodicarbonamide (AC foaming Agent)

China’s domestic rare earth market declined on June 25

On June 25, the rare earth index was 402 points, down 5 points from yesterday, down 59.80% from the cyclical peak of 1000 points (2011-12-06), and up 48.34% from the lowest point of 271 on September 13, 2015. (Note: Period refers to 2011-12-01 to date).

Bacillus thuringiensis

The average price of Neodymium in rare earth metals dropped by 12.5 million yuan per ton to 457 million yuan per ton; the average price of dysprosium was 2.4 million yuan per ton; and the average price of praseodymium was 7.1 million yuan per ton. The average price of praseodymium and neodymium oxides in rare earth oxides dropped by 12.5 million yuan per ton to 355 million yuan per ton, dysprosium oxide by 2 million yuan per ton, praseodymium oxide by 4.05 million yuan per ton, and neodymium oxide by 1.25 million yuan to 3.57 million yuan per ton. The price of praseodymium and neodymium alloys in rare earth alloys dropped by 12.5 million yuan per ton to 457 million yuan per ton, while the average price of dysprosium-iron alloys was 2 million yuan per ton.

Recently, some prices in the rare earth market have fallen, the domestic rare earth market is in general, and most commodity prices in the rare earth market are stable. However, the prices of some products in the rare earth market have fallen sharply and the prices of terbium-based metals have fallen sharply. Recently, the prices of Praseodymium-Neodymium series products have fallen back, the supply in the market is normal, and the prices of light rare earths have declined recently. The price fluctuation of rare earth market is related to environmental protection supervision in the whole country. Rare earth production has its particularity, especially the radiation hazard of some products, which makes environmental protection supervision stricter. Under the strict environmental protection inspection, rare earth separation enterprises in many provinces have stopped production, resulting in a general market of rare earth oxides. Recently, the rare earth market has turned to the seller’s market. The manufacturers have reasonable control over sales and are reluctant to sell. Especially for some mainstream rare earth oxides, the supply performance is still tense. The price trend of rare earth market has slightly declined. Recently, large enterprise groups are reluctant to sell, and the market of rare earth has improved. However, the major manufacturers are cautious about the pricing of products.

Benzalkonium chloride

Recently, the State Environmental Protection Department has made no reduction in its stringent efforts, which has a greater impact on the rare earth industry. The rare earth industry has a low start-up and a cold market. Recently, the NDRC held a press conference on macroeconomic operation. Meng Wei, a spokesman for the NDRC, answered reporters’questions on rare earth. He said that on the basis of in-depth investigation and scientific demonstration, relevant policies and measures would be put forward to give full play to the special value of rare earth as a strategic resource. Due to the increasingly obvious regulatory effect, the rare earth industry upstream. The supply of raw ore resources has shrunk, and the trading market of rare earth industry is normal.

Rare earth analysts of business associations expect that the recent stringent domestic environmental protection efforts will not decrease, coupled with the domestic reorganization of the order of the rare earth industry, Myanmar’s restrictions on exports and reduced supply, which will provide some favorable support for the rare earth industry, but the recent rare earth market transactions are limited, and rare earth products are expected to remain volatile.



High inventory makes it difficult to improve the future market pattern of polypropylene

Last week, the rapid development of the futures market gave petrochemical manufacturers a certain cost support. New maintenance devices have also been opened one after another, which has a certain mitigation effect on supply. In inventory, after a rise in the market, inventory has been effectively digested, and merchants actively shipped, but terminal demand has not improved, or market growth is difficult to have greater expectations.

I. Several Reasons Causing Poor Transaction in Spot Market

1. Supply exceeds demand, and new products are put into the market one after another, which intensifies the rising process of stock backlog in the market.

2. It is difficult for downstream orders to break expectations and market supply to be digested effectively, which aggravates market bullishness.

3. At present, the stock of “two barrels of oil” is still at a high level, and the pressure of market sales is not decreasing.

Gamma-PGA (gamma polyglutamic acid)

4. There are not many overhaul devices, and the phenomenon of low-price goods rejection is frequent in the market, mostly low-level transactions.

II. Frequent Inventory Pressure

The high stock of “two barrels of oil” causes the pressure of price reduction of production enterprises to increase gradually. At present, the only way to alleviate the pressure of market inventory is to increase the order quantity of downstream enterprises, or to reduce the production load of manufacturers, or to advance to the maintenance stage, so as to alleviate the pressure of market supply and demand.

3. Prospects for the Future Market of Polypropylene

Sodium Molybdate

At present, the cost support of polypropylene has increased due to the increase of most of the previous price of oil and gas, but the follow-up of spot delivery is insufficient. Considering that the price rebound of polypropylene is greatly affected by the macro-level, and the supply and demand side is limited, at the same time, the import window of polypropylene is close to open, the price gap between drawing and copolymerization is gradually close, and there are still plans to put into operation for giant positive sources and other devices in the future. It is expected that the price of PP market will increase slightly in the near future. The main stream of wire drawing is 8500-8700 yuan/ton, and the main stream of copolymerization is 8800-9000 yuan/ton.

June 24 Magnesium Ingot Market

1. Commodity Name: Magnesium Ingot (9990)

2. Latest price (2019.6.24): 15900 yuan/ton (lower mainstream quotation)


The ex-factory tax in Fugu area is 15500-15800 yuan/ton; the spot remittance in Taiyuan area is 15700-16000 yuan/ton; the spot remittance in Wenxi area is 15700-16000 yuan/ton; and the spot remittance in Ningxia area is 15600-15700 yuan/ton.


3. The main points of analysis are as follows: at present, the market of magnesium is on the low side, the downstream demand is not enough, the processing enterprises purchase more on demand, the traders enter and exit more quickly, and the willingness to hoard goods is low. At present, the stock of magnesium ingots has increased, and the supply of low-price products has begun to increase sharply. The market mentality of “selling up but not buying down” intensifies the weak operation of the market in the off-season of weak demand at home and abroad.

4. Future market forecast: weak demand, high inventory, magnesium ingot short-term weak operation is expected to be the main.

Azodicarbonamide (AC foaming Agent)