The demand for cycloprop is low, the domestic polyether market is still down

As of May 11th, the domestic bulk cash in East China was sent to mainstream quotes at 8800-9100 CNY/ton. From the perspective of the whole year of 2020, the price of polyether as a whole went down.

Among them, the Chinese polyether market continued to decline from January to April, with the lowest price of 7100 CNY/ton in early April. The main influencing factor was the impact of the public health incident in the first quarter. Domestic demand was frustrated and export orders fell sharply. The oversupply caused the market price to fall.

The polyether market has slightly corrected since April. Affected by the sharp rise in propylene-cyclopropylene in mid-April, polyether quotations followed up, but the market was not buying enough and quickly fell back. After the end of April, the polyether market maintained a stable upward adjustment, mainly considering that the cyclic propylene plant was in operation, which led to an increase in the polyether offer.

Judging from the actual market situation in May: the downstream demand side is dominated by rigid demand; while on the supply side, polyether manufacturers are supported by costs, and high prices are reported low, and holders are actively shipping. When traced back to the roots, the support point of the cyclic C industry is that the current operating load of cyclic C manufacturers is generally not high, and the inventory pressure is relatively small.

After the holiday, some of the PO factories have not resumed normal operation. Shandong Binhua, Xinyue, Tianjin Dagu and other construction loads are not high, while Shi Dashenghua and Daze are still stopped.

With the gradual resumption of work in various domestic industries, domestic terminal demand picked up slightly compared with the previous period. The foreign market has also begun to be unblocked gradually, domestic export orders have begun to increase, and the increase in foreign trade demand may be a big benefit for the polyether market.