According to the data monitored by the business agency, the domestic PP market trend in August was strong, and the spot prices of some brands rose slightly. As of August 31, the mainstream offer price of T30S (wire drawing) of domestic manufacturers and traders was around 8016.67 yuan / ton, an increase of 2.78% compared with the average price at the beginning of the month.

Cause analysis

The domestic market price of PP upstream propylene fluctuated periodically in August. After the upward trend broke through the original range at the beginning of the month, the price fluctuated and stabilized, reaching 6848 yuan / ton at the beginning of the month; 6940 yuan / ton at the end of the month, with a monthly increase of 1.34%; the monthly low price appeared on August 4, with a monthly high price of RMB 7036 / T from August 10 to 13, with a monthly amplitude of 3.08%. At the beginning of August, the price was at a high level in the range. Since the end of the week, the price of some enterprises has been slightly up and down, but it has remained stable since the end of the week. On the 5th, the prices of some enterprises have been slightly stable. From 6th to 10th, the first round of rising trend of breaking through the range of this month has been started. From the 11th to the 16th, the price has continued to decline, and on the 17th, it has been stable for more than 10 days Most manufacturers still keep their prices stable. On the 29th, the prices dropped by about 50 yuan / ton, and then continued to stabilize. At present, the market turnover is between 6880 yuan / ton and 7250 yuan / ton, and the mainstream price is about 6900 yuan / ton. Propylene manufacturers to ship smoothly, inventory pressure, propylene prices are expected to rise.

Upstream propylene fluctuated and rose in August with a strong trend, which supported the cost side of PP. According to the data monitored by the business agency, the market performance of PP (wire drawing) in August was stable and rose slightly, and the spot price was adjusted slightly. In terms of inventory, PP inventory of two barrels of oil and other production enterprises decreased, while the decline rate of social inventory was slightly lower. Far upstream crude oil has a strong trend in the near future, forming a certain support for chemicals. In the first half of this month, some ports were prone to extreme weather, which affected the arrival of ships and cargoes, and the port inventory also declined. In the late middle of the year, there is a resumption of production of PP maintenance equipment. At present, the negative expectation of increasing PP supply is not obvious. The quotation of merchants is following up. At present, the downstream price reduction intention is obvious. It is expected that the upward adjustment range of PP (wire drawing) price may be narrowed.

According to the data monitored by the business agency, as of August 31, the mainstream offer price of domestic manufacturers and traders Z30S (fiber) was about 7983.33 yuan / ton. Compared with the average price level at the beginning of the month, it increased by 2.57%. Previously reported that a number of production lines in August ushered in production, the current positive market diluted the impact of supply expansion on PP prices. In addition, the extreme weather led to the same decrease in the arrival of fiber materials, and the futures market strengthened, which naturally had a boosting effect on the spot. At present, the supply and demand of domestic PP fiber material and drawing material are stable, and the operation situation is similar. PP (fiber) is expected to continue finishing market in the near future.

PP meltblown material market weakness continues, domestic PP melt blown material market confidence is insufficient, the price continues to fall. At present, the epidemic situation in China is generally stable, and the demand for epidemic prevention products is declining seriously. The current market supply exceeds the demand, and the price of PP melt blown materials has fallen continuously. PP (35.5%) business in August. However, overseas demand did not decrease. In the middle of this month, several large domestic export factories failed, affecting the market atmosphere, leading to a significant decline in the market. In the follow-up, there are complications that aggravate the competition of domestic anti epidemic product manufacturers. However, the reason for the weakness of PP melt blown materials in the general direction is that the domestic mask factories have increased sharply and their profits have been diluted seriously. In addition, at the beginning of this month, the news that Sinopec’s Yanshan Petrochemical and Yizheng Chemical fiber changed from directional supply to national customer sales also impacted the current market. At present, the epidemic prevention materials are more diversified, and the demand for meltblown materials is also scattered. The demand for PP (melt blown) has not improved, and the business mentality is negative. It is expected that the melt blown materials will still be difficult to improve in the near future.

Future forecast

PP business agency analysts believe: August domestic PP spot market trend shocks strong. Upstream propylene market is strong, there is support for PP cost side. PP (drawing) and PP (fiber) fluctuated and rose, PP (melt blown) demand continued to be weak, prices continued to callback. The current inventory decline, supply expansion expectations and futures rise and other mixed news at the same time. Downstream factory stock situation is OK, business offers have increased. PP spot price is expected to narrow the range of adjustment in the near future.

Commodity index: on August 31, the commodity index of polyaluminum chloride was 84.94, which was the same as yesterday, decreased by 22.08% from the highest point of 109.01 in the cycle (August 28, 2019), and increased by 0.74% from the lowest point of 84.32 on August 18, 2020. (Note: cycle refers to the period from April 1, 2019 to now)

However, the price of aluminum chloride rose by 46.64% on the second half of the month, with the highest rise of RMB 1578.64% on the second half of the month, with the aluminum content of 1578.64% higher than that at the second half of the month.

According to the data of business agency, the comprehensive price of hydrochloric acid in North China decreased slightly in the second half of the month, with the quotation of 335 yuan / ton on August 16 and 300 yuan / ton on 31 August, with a decrease of 35 yuan / ton. From the manufacturer’s quotation, the quotation of hydrochloric acid Market in the second half of the month is mainly stable, and the quotation of a few enterprises has changed. The quotation of Taiyuan kunshengda hydrochloric acid is 480 yuan / ton, Dezhou Shihua hydrochloric acid is 300 yuan / ton, Shanxi Wenshui synthetic hydrochloric acid is 260 yuan / ton, Jinan Yuanfei Weiye hydrochloric acid is 400 yuan / ton, Dezhou Maihua hydrochloric acid is 240 yuan / ton, compared with the first half of the month, the price is stable. The upstream liquid chlorine market is temporarily stable, the cost support is general, the maintenance of hydrochloric acid enterprises is increasing, and now it is easy to make poison, and it is difficult to handle the procedures. The supply of hydrochloric acid is relatively tight, and the downstream enterprises have a good purchasing enthusiasm. Polyaluminum downstream: at present, there is little change in the downstream purchase of polyaluminum chloride, and the demand is relatively light. Polyaluminum manufacturers still have high inventory, high sales pressure and weak market stability.

In terms of industry, the water treatment industry began to change in August. However, because the price of raw material calcium powder increased by 80 yuan / ton to about 1000 yuan / ton, some manufacturers were subject to the cost rise and raised the market price of polyaluminum chloride, while the prices of other manufacturers were mainly stable.

As for the future market, the business agency analyzed that under the “golden nine silver ten” expectation, the water treatment industry was expected to be better, and the price of polyaluminum chloride was subject to part of the cost price increase; in terms of the aftermarket, the water treatment industry in autumn is also a traditional peak season, with the increase of projects and the increase of demand, the trend of polyaluminum chloride in the future market will be mainly steady and small rise.

Commodity index: on August 31, the commodity index of polyaluminum chloride was 84.94, which was the same as yesterday, decreased by 22.08% from the highest point of 109.01 in the cycle (August 28, 2019), and increased by 0.74% from the lowest point of 84.32 on August 18, 2020. (Note: cycle refers to the period from April 1, 2019 to now)

According to the monitoring data, the mainstream quotation of PAC solid and content ≥ 28% in August showed a slight rise, of which the quotation on the 1st day was about 1561.43 yuan / ton, on the 31st was 1571.43 yuan / ton, with an increase of 0.64% in August, but the highest point was 1582.86 yuan / ton on August 25, with the maximum amplitude of 1.19%.

According to the data of business agency, the comprehensive price of hydrochloric acid in North China decreased slightly in August, with 357.5 yuan / ton on August 1 and 300 yuan / ton on 31 August, down 57.5 yuan / ton. From the manufacturer’s quotation, the quotation of hydrochloric acid Market in the second half of the month is mainly stable, and the quotation of a few enterprises has changed. The quotation of Taiyuan kunshengda hydrochloric acid is 480 yuan / ton, Dezhou Shihua hydrochloric acid is 300 yuan / ton, Shanxi Wenshui synthetic hydrochloric acid is 260 yuan / ton, Jinan Yuanfei Weiye hydrochloric acid is 400 yuan / ton, Dezhou Maihua hydrochloric acid is 240 yuan / ton; compared with last month, some prices are reduced. The upstream liquid chlorine market is temporarily stable, the cost support is general, the maintenance of hydrochloric acid enterprises is increasing, and now it is easy to make poison, and it is difficult to handle the procedures. The supply of hydrochloric acid is relatively tight, and the downstream enterprises have a good purchasing enthusiasm. Polyaluminum downstream: at present, there is little change in the downstream purchase of polyaluminum chloride, and the demand is relatively light. Polyaluminum manufacturers still have high inventory, high sales pressure and weak market stability.

In terms of industry, the water treatment industry began to change in August. However, because the price of raw material calcium powder increased by 80 yuan / ton to about 1000 yuan / ton, some manufacturers were subject to the cost rise and raised the market price of polyaluminum chloride, while the prices of other manufacturers were mainly stable.

As for the future market, the business agency analyzed that under the “golden nine silver ten” expectation, the water treatment industry was expected to be better, and the price of polyaluminum chloride was subject to part of the cost price increase; in terms of the aftermarket, the water treatment industry in autumn is also a traditional peak season, with the increase of projects and the increase of demand, the trend of polyaluminum chloride in the future market will be mainly steady and small rise.

Commodity index: on August 31, the polyacrylamide commodity index was 85.64, which was the same as yesterday, 20.06% lower than 107.13 (2019-05-08), and 3.32% higher than the lowest point of 82.89 on August 02, 2020. (Note: cycle refers to the period from April 1, 2019 to now)

According to the monitoring data, in August, polyacrylamide (CPAM, cation, molecular weight 12 million, 10-30 ionic degree) showed a trend of rising first and then decreasing slightly. On the first day, the mainstream quotation was 13566.67 yuan / ton, and on the 31st was 14016.67 yuan / ton, with a monthly increase of 3.32%. From the perspective of manufacturers’ quotations, most quotations were stable, and a few manufacturers lowered their quotations to promote inventory consumption.

Among them, the mainstream quotation range of polyacrylamide this month is as follows: cationic, molecular weight 12 million (10-30 ionic degree) offer 14000-15000 yuan / ton, up 1000 yuan / ton; anion: molecular weight 10 million yuan / ton, molecular weight 12 million yuan / ton, 7800-10500 yuan / ton, molecular weight 14 million solid particles 9000-11500 yuan / ton, molecular weight 16 million solid particles 9600-10500 yuan / ton/ The price of solid particles is 10400-11000 yuan / ton with molecular weight of 18 million yuan, and that of powder with molecular weight of 18-20 million yuan / ton is 12000-12500 yuan / ton; that of non-ionic is about 12000-13000 yuan / ton.

The price of upstream acrylonitrile was quoted at 7600 yuan / ton at the beginning of this month, with a monthly increase of 850 yuan / ton, and 8450 yuan / ton on the 31st daily. Plant dynamics: in August, the settlement price of main acrylonitrile manufacturers was concentrated at 7800 yuan / ton. Jilin chemical fiber Qifeng and Jimeng acrylic fiber plants planned to stop for maintenance on August 28 for 10-15 days, affecting the acrylic fiber output of about 15000 tons. Shanghai SECCO’s acrylonitrile listing price rose by 300 yuan / ton this week and implemented 7900 yuan / ton. In terms of downstream demand, August is still at the end of the off-season sales season. The high temperature affects the construction demand, so it is inevitable that the market will be light. At present, it will enter September soon and the “golden nine silver ten” will come soon.

From the perspective of industry, since 2020, the prosperity of environmental protection water treatment industry is poor. During the period from January Spring Festival holiday to February 20, relevant enterprises in main production areas stopped production and delayed to resume work. After February 20, the manufacturers in the main production areas gradually returned to work and production. In March, logistics returned to normal, mainly consumed inventory. In April, the manufacturers survived normally, and the raw material cost was partly reduced and the demand was weak, which led to the high inventory of manufacturers. On May 6, the national high-speed recovery of charges, the price of acrylonitrile and other raw materials rose, the ex factory price of polyacrylamide did not change much, and there were more stocks; with the upstream propylene of acrylonitrile rising in the industrial chain relationship of “propylene PP melt blown cloth mask”, the production capacity of acrylonitrile manufacturers decreased this month, which directly led to the firm price of acrylonitrile. In July, the price of acrylonitrile was sharply reduced, and the cost of polyacrylamide was lowered. Some enterprises lowered the price of their products according to the trend, and then rebounded in the second half of the month. However, the prices of manufacturers did not change significantly. In fact, most manufacturers hoarded raw materials, and the cost of purchasing determined the price and cost. In August, acrylonitrile continued to rebound slightly, and then continued to be stable. From this month to September and October, it immediately entered the “golden nine silver ten”, and the traditional peak season can be expected.

After the market forecast, the business agency analysis believes that the price of acrylonitrile, the raw material of polyacrylamide, continued to rise in August, although the range did not exceed 1000 yuan / ton, but due to the large inventory pressure of acrylonitrile amide manufacturers, the price was slightly reduced to promote inventory consumption. For the future market trend, inventory driven by the traditional sales peak season, the inventory may decline faster, the market transaction atmosphere can be improved, and the future market can be expected.

This week, the domestic liquid ammonia market remained stable in most regions. Shandong and Hebei regions also ended the rebound, and the price was mainly stabilized. According to the monitoring of the business agency, the increase of liquid ammonia was 0.32% in the week of the 24th, and the mainstream market quotation was 2850-3050 yuan / ton.

After two consecutive weeks of upward price of liquid ammonia in Shandong, the price has slightly stabilized this week. Before that, the major plants were still in the maintenance period. Most of the liquid ammonia were used by themselves, and a small amount of liquid ammonia was mainly exported. The manufacturer’s inventory pressure was not great, and the enterprise’s quotation continued to rise, with an increase of more than 300 yuan / ton for two consecutive weeks. This week, the manufacturer’s devices returned to normal, the export volume continued to increase, and the ammonia quantity in the region gradually returned to normal, Therefore, the price mainly stabilizes, and the possibility of price callback with the accumulation of inventory can not be ruled out in the later period.

In other regions, the price of liquid ammonia in Hebei has remained stable, but the price has slowed down. Affected by the low level of ammonia in Shandong, the amount of ammonia sold by Shandong manufacturers to this region is small, and the amount of ammonia in Hebei remains controllable. Therefore, the price of liquid ammonia in Hebei continues to be firm, and there is still a slight upward trend in some parts, but the range is obviously slowing down. At around 50 yuan / ton, the current market price has already reached a certain level It recovered to the level at the beginning of July. At present, the Cangzhou unit of a plant in Hebei still produces a small amount of liquid ammonia, so the pressure is not big. The amount of liquid ammonia in the region basically maintains a balance between supply and demand, and the current price is 2950-3100 yuan / ton.

Looking at the future market, the business agency believes that at the end of the month, most of the liquid ammonia Market stabilized, and the current round of rising market was basically ended. However, it is expected that the ammonia volume will remain moderate in the short term. Therefore, it is expected that the domestic liquid ammonia market will consolidate at a high level in the near future, and the trend of various regions may appear certain differentiation. The market is mainly affected by large plants. With the recovery of devices in Shandong area, the amount of ammonia will gradually accumulate Product, the price may be subject to certain restrictions. From the demand side, the downstream still maintains rational and rigid demand. Although urea has winter storage, the social inventory is still high and the price support is limited. As far as the downstream fertilizer market is concerned, it is still in the autumn fertilizer production and sales peak season, and the operating rate is expected to remain stable and high. For example, the export price of diammonium phosphate continues to rise, and the delivery form of compound fertilizer will continue to improve. However, due to the influence of overseas epidemic situation, the export volume may not be greatly improved, and it is still driven by domestic rigid demand. Therefore, the price of liquid ammonia will maintain range fluctuation due to the influence of supply and demand.

1、 Price trend

According to the monitoring data of business agency, the price of domestic soda ash has risen sharply. The average market price in East China was 1416.67 yuan / ton at the beginning of the week and 1633.33 yuan / ton at the weekend. This week, the price rose by 15.29%, 25.64% compared with the beginning of the month and 5.41% lower than the same period last year. The commodity index of light soda ash on August 27 was 76.41, up 1.71 points compared with yesterday, 35.17% lower than 117.86 points (2017-11-21), and 21.00% higher than the lowest point of 63.15 points on November 18, 2015. (Note: period refers to 2011-09-01 to now)

2、 Market analysis

According to the instructions of the light soda Association, the price of light soda increased by RMB 200 / T in a week according to the spirit of the light soda Association. This week, the trend of domestic soda ash market is relatively strong, and the price of enterprises has increased greatly. The market atmosphere is flat, downstream demand has improved, and manufacturers are mainly active in shipping. Second, domestic soda ash inventory declined. According to statistics, the total inventory of domestic soda manufacturers was 842100 tons, down 90400 tons month on month. From the supply side, affected by natural disasters and other factors, the number of maintenance enterprises has increased recently. The domestic total operating rate is about 70%.

The price of domestic soda ash rose, and the downstream demand improved, but the overall situation showed a wait-and-see situation. The following figure shows the regional price quotation of light soda ash.

Regional price (yuan / ton)

North China 1600-1700 + 200

East China 1500-1650 + 200

Huazhong 1550-1650 + 200

Raw materials: the atmosphere of raw salt market in China is stable, and the prices in some regions have been raised. From the current understanding, the main production areas of sea salt supply performance is adequate. Some areas of supply and demand in well and mineral salt production areas have improved. The northern region has sufficient supply of goods, while the southern region is affected by heavy rainfall, and some salt enterprises are limited to start operation, and the price fluctuates slightly. The overall atmosphere of raw salt delivery is wait-and-see, and the market transaction is slightly cautious.

In terms of demand: the overall trend of domestic float glass market is stable and slightly upward, with slight differences in different regions. In the Shahe area of North China, manufacturers have no pressure on inventory, and the willingness of manufacturers to support prices is relatively strong. The market turnover in East China is good and stable. The quotation of some manufacturers has been increased by 0.2-0.3 yuan / m2, while other manufacturers are mainly stable. The overall trend of the spot glass market in South China was general, and some manufacturers’ quotations rose slightly, about 0.3 yuan / m2, to boost market confidence. The transaction price in Central China is flexible. The market transaction prices in southwest, northwest and Northeast China are mainly stable.

According to the price monitoring of the business agency, in the 33rd week (8.17-8.21) of 2020, there are 3 kinds of commodities rising, 1 kind of falling commodity and 1 kind of 0 commodity. The main commodities that rose were light soda ash (2.41%), PVC (2.21%) and calcium carbide (0.86%); the main commodities falling were hydrochloric acid (- 1.49%). This week, all rose or fell 0.8%.

However, analysts believe that the overall demand of soda enterprises in the downstream market is still strong. According to the statistics, the total inventory of domestic soda ash manufacturers is 842100 tons, and the total inventory of domestic soda ash is still at a high level. All enterprises adjust their prices according to their own conditions. It is estimated that after this round of price increase, the price of soda ash will tend to be rational and fluctuate slightly.

1、 Market price trend chart of paraformaldehyde

Polyoxymethylene price curve

According to the monitoring of the business agency, at the beginning of this week, the average price of Polyoxymethylene (96) in Shandong Province was 4400 yuan / ton, and the average price at weekend was 4433 yuan / ton, up 0.76%.

2、 Market analysis

Shandong aldehyde Chemical Industry Co., Ltd., with an annual output of 30000 tons of paraformaldehyde, Polyoxymethylene (96) ex factory, including tax, quoted 4600 yuan / ton, which was the same as last week. Linyi Shengyang Chemical Co., Ltd., with an annual output of 9000 tons of paraformaldehyde, Polyoxymethylene (96) ex factory, including tax, quoted 4100 yuan / ton, which was the same as last week. Zibo Qixing Chemical Technology Co., Ltd., with an annual output of 10000 tons of paraformaldehyde, Polyoxymethylene (96) ex factory, including tax, quoted 4600 yuan / ton, which was 100 yuan / ton higher than last week. The price of paraformaldehyde is generally stable and partially adjusted. Paraformaldehyde is still in general.

According to the price monitoring of the upstream methanol, the methanol price dropped slightly this week, which suppressed the poly price.

3、 Future forecast

Raw material methanol market weak, business community paraformaldehyde analysts believe: polyoxymethylene price will be reduced.

Price trend

According to the business agency data monitoring shows that this week, plasticizer DOP market weakened, price shocks fell. As of August 31, the DOP price was 6966.67 yuan / ton, down 0.48% from the previous weekend (August 23) of 7000.00 yuan / ton, and 5.43% lower than that of last year.

Upstream market of industrial chain

As can be seen from the phthalic anhydride trend chart, this week, DOP raw material phthalic anhydride market hit the bottom and rebounded, phthalic anhydride price rose slightly, with an increase of 0.99%, DOP cost rose and DOP rising momentum increased.

As can be seen from the octanol price trend chart, the octanol market fell in August, and the octanol market continued its downward trend this week. The octanol price fluctuated and fell by 1.18%. The cost of DOP decreased and the pressure of DOP decline increased.

Downstream market of industrial chain

It can be seen from the PVC price trend chart that in August, the PVC price rose slightly, and the PVC market recovered; this week, the PVC price fluctuated slightly, the PVC market weakened, the plasticizer DOP rising power weakened, and the downward pressure increased.

Market review and future expectation

According to Bai Jiaxin, DOP data analyst of business agency, this week, DOP raw material prices have been adjusted, phthalic anhydride prices have hit the bottom and risen slightly, octanol prices have dropped slightly, and the overall DOP cost has remained stable; on the downstream side, the PVC market has fallen slightly, the PVC price has fallen slightly, the upward momentum of DOP has weakened, and the downward pressure has increased. Generally speaking, DOP market has great downward pressure and weak upward momentum. Looking at the future market, “Jinjiu” is coming. PVC market has a strong upward momentum, which is good for DOP market. In terms of raw materials, DOP cost is stable, and DOP negative pressure is small. It is expected that the future market of DOP will recover.

This week, the domestic rare earth market price trend declined, heavy rare earth price fell back, light rare earth market price corresponding callback. According to the rare earth plate index of business society, the rare earth index on August 28 was 378 points, 1 point lower than yesterday, 62.20% lower than the cycle high point 1000 (2011-12-06), and 39.48% higher than 271 point, the lowest point on September 13, 2015. (Note: period refers to 2011-12-01 to now).

As of the end of the week, the price of praseodymium and neodymium oxide in China was 341000 yuan / ton, down 2.43% from 349500 yuan / ton at the beginning of the week; the price of praseodymium and neodymium alloy was 436500 yuan / ton, 1.58% lower than 4435000 yuan / ton at the beginning of the week; the price of neodymium oxide was 362500 yuan / ton, down 0.55% from 364500 yuan / ton at the beginning of the week; the price of metal neodymium was 459500 yuan / ton, which was stable this week The price of praseodymium was 330500 yuan / ton, down 2.07% from 337500 yuan / ton at the beginning of the week; the price trend of praseodymium metal was stable this week.

In recent years, the domestic light rare earth industry is mainly due to the negative downstream procurement, strong wait-and-see attitude, reduced trading volume, loss of support for manufacturers’ prices, some prices in the light rare earth market began to fall, and the price trend of other products was mainly stable. Recently, the demand and stock situation of permanent magnet manufacturers was general, the price of praseodymium and neodymium rare earth was mainly stable, and the market price of light rare earth was still at a low level. In addition, due to the impact of the epidemic, the import volume of overseas rare earth ores has dropped sharply, and the waste recycling and monazite raw materials have decreased, resulting in the decline of domestic rare earth smelting production. In addition, the downstream stock has been stopped for some time ago, and the domestic market price of light rare earth has begun to fall.

This week, the price trend of domestic direct family declined. As of the end of the week, the price of dysprosium oxide was 1.8 million yuan / ton, and the price trend of this week was down 0.28%; the price of dysprosium ferroalloy was 1.78 million yuan / ton, which was temporarily stable this week. Although the proportion of medium and heavy rare earth in the domestic rare earth collection and storage plan is large, it is expected to have a great impact on the supply and demand and price of medium and heavy rare earth, but the information of collection and storage is uncertain Myanmar’s customs clearance still has a tightening impact on domestic import and supply of medium and heavy rare earths. However, the downstream demand is not positive in recent years, and the market price of heavy rare earth has fallen back. In recent years, the market is general, heavy rare earth prices remain high, downstream demand has not significantly improved, heavy rare earth market prices slightly lower.

The Ministry of industry and information technology issued the notice on the docking and implementation of preferential policies for rare earth industry. According to the notice, the rare earth office entrusted China Nonferrous Metals Industry Association and China Rare Earth Industry Association to sort out and summarize the policy documents suitable for the application of rare earth enterprises, and formed a collection of supporting policies for the resumption of work and production of rare earth industry. Favorable policies support the development of rare earth industry. Meanwhile, Sino US relations are tense. Key products of rare earth trade between China and the United States are of great significance. The national policy is conducive to the balance of supply and demand in the rare earth industry. Recently, the supply of rare earth market is normal, and the demand has declined compared with the previous period. The domestic rare earth price fell this week.

Recently, the domestic demand for rare earths has fallen down compared with the previous period. In addition, the downstream procurement is not active and the wait-and-see attitude is strong. Analysts from the business agency predict that the market price of rare earth will decline in the future.

According to the data of business agency, the spot price of gold on August 28 was 416.33 yuan / g, a decrease of 2.19%%, compared with the average price of 425.66 yuan / G on the spot market of buyers · 1 day in 1998; the spot price of gold was 342.54 yuan / g at the beginning of the year (01.01), up 21.54%; compared with the valley value of the year (3.19), the spot price of gold was 331.75 yuan / g, up 25.50%; compared with the peak value of the year (8.7), the spot price of silver was 4.4% 48 yuan / g, down 7.07%.

On August 28, the average price of silver market was 5946.33 yuan / kg, an increase of 8.02%%, compared with the average price of 5504.33 yuan / kg in the early trading of spot market on August 28; compared with the spot price of silver at the beginning of the year (01.01), 4281.67 yuan / kg, up 33.33%; compared with the valley value (3.19), the spot price of silver was 2942.67 yuan / kilogram, up 102.07%; compared with the peak value (8.11) of the year, the spot price of silver decreased by 1.1% 1.36%。

On August 28, the benchmark quotation of Shanghai gold (gold ingot with standard weight of 1kg and fineness of no less than 99.99%) was 417.68 yuan / g in midday trading on Shanghai gold exchange. Compared with 416.12 yuan / g in early trading, the benchmark price was increased by 1.56 yuan / g.

On August 28th, the benchmark quotation of Shanghai silver (15kg standard weight and 99.99% purity silver ingot) in Shanghai gold exchange was 5973 yuan / kg in midday trading, and was increased by 32 yuan / kg from 5941 yuan / kg in the early trading.

Influencing factors of recent news

1. Fed policy

At 21:10 Beijing time on Thursday, the Federal Reserve issued a revised statement of its long-term goals. Fed chairman Colin Powell said the Fed’s inflation target is now 2%. The Fed did not provide a formula to define an average 2% inflation rate. Powell said the Fed’s new strategy was “a flexible form of targeting average inflation.”.

Generally speaking, when the inflation rate is more than 2%, the possibility of the Federal Reserve to raise interest rates will decrease. For the first time, domestic precious metal futures will rise sharply in the night trading, and then the funds will take profits and plunge sharply.

2. Sino US Geopolitics

On August 25, China protested that the US reconnaissance plane broke into the restricted area for military exercises. On the 26th, China launched four medium range missiles into the Xisha sea area of the South China Sea. The US side subsequently sanctioned 24 Chinese enterprises involved in the South China Sea, and the military also made a strong voice. On the 27th, China protested that the US warships had broken into Xisha territorial waters on the same day.