price trend
| Gamma-PGA (gamma polyglutamic acid) |
The domestic PC market rebounded after a decline in the first half of July, and spot prices of various brands have basically rebounded to the level at the beginning of the month. As of July 14th, the PC mixed benchmark price is around 13033.33 yuan/ton, with a price level increase of 0.51% compared to the beginning of the month.
Root cause analysis
On the supply side: As we enter July, the operating rate of domestic PC aggregation enterprises continues to rise. The overall industry load rate is around 80%. The production loss is gradually shrinking, and currently the weekly average production has returned to around 65000 tons. The shipping smoothness of the polymerization plant is average. Overall, the supply side has poor support for PC.
In terms of raw materials, it can be seen from the above chart that the domestic bisphenol A market was mainly consolidating at a low level in the first half of July, with a narrow increase. International crude oil prices have risen due to the repeated impact of the Middle East situation, leading to a significant increase in acetone and phenol. The market has a positive expectation for bisphenol A, but there will be limited supply changes in the first half of the year, and demand will remain essential. As the middle of the month approaches, the supply of legitimate goods is gradually tightening, with holders mainly raising prices, downstream low-priced goods decreasing, and the focus of actual transactions increasing. Overall, the support for PC cost value has increased.
On the demand side: The sales situation of PC downstream factories is at a low season level, and the demand for sheet metal shells is weakening, resulting in low load levels for end enterprises. The current PC prices are basically at the lowest point of the year, and there is a strong wait-and-see atmosphere in the market. The buyer is cautious in stocking up and has poor willingness to build a warehouse. The liquidity of the source of goods has slowed down, and merchants are following the market with their offers. They are cautiously trying to increase their offers. The on-site supply of goods needs to be digested, and the upward adjustment of the pricing center of the aggregation plant is limited. Overall, the demand side has poor support for PC spot prices.
Future forecast
In the first half of July, the domestic PC market recovered after a decline. The price of upstream bisphenol A has risen at a low level, and the cost value has provided narrow support for PC. The load of domestic PC aggregation plants continues to increase, and the expected future supply will be relaxed. On site trading is mainly based on weak demand, with cautious stocking and frequent small orders. At present, the supply and demand of PC are weak, and there is significant upward resistance in the market. It is expected that the short-term increase may be limited.
| http://www.lubonchem.com/ |