The chemical market gradually picks up, a variety of chemicals rebound

In the first quarter of this year, chemical prices generally fell. Some manufacturers even admitted that the business could not be done (epidemic + inventory backlog). In May, the chemical market finally swept away, and most domestic chemical raw materials started to rebound. Chemical products such as ethylene, asphalt, cyclohexanone, nylon chips, soft foam polyether, acetic anhydride, and polyester increased significantly.

Crude oil returns to around $ 30 / barrel

Recently, Saudi Arabia announced that it will "voluntarily" reduce production by 1 million barrels in addition to the OPEC + plan in order to maintain the stability of the global energy market. For a while, oil prices continued to rebound, and as of Wednesday (May 20) WTI July 2020 futures rose $ 1.53 per barrel at $ 33.49, and Brent July 2020 futures rose $ 1.10 per barrel at $ 35.75.

On the demand side, most countries began to relax the blockade measures during the epidemic. The demand for crude oil improved significantly and provided upward momentum for oil prices. On the supply side, optimistic expectations of deepening production cuts are expected to heat up. Saudi Arabia said Monday night that it will deepen production cuts by 1 million barrels in June / Day; The UAE and Kuwait also followed up and stated that they will reduce production by an additional 100,000 barrels / day and 80,000 barrels / day, respectively. In the short term, the crude oil market is bullish in the short term against the background of successive resumption of work in some countries.

The atmosphere of the domestic chemical market gradually picks up

Benefiting from the recovery of the international crude oil situation, coupled with the recovery of domestic domestic demand, the prices of energy and chemical downstream products have gradually bottomed out.

Of the 122 chemical products tracked this week, 46 varieties rose last week, the proportion of the increase rose from 26.23% in the previous week to 38.33%, 18 varieties fell, and the proportion of the decline fell from 27.05% in the previous week to 15% .

Chemicals such as ethylene, asphalt, cyclohexanone, nylon chips, soft foamed polyether, acetic anhydride, and polyester have seen larger gains.