Rising in raw material fluctuations

Market overview for the year

:: Rising in raw material fluctuations

:: Slow downstream resumption of work affected by the epidemic

In May, the domestic adipic acid market fluctuated and rose, mainly following the fluctuation of raw material pure benzene prices. After May 1st, the international crude oil fluctuated and rose, the market mentality improved, the price of the raw material benzene increased, the cost pressure became prominent, and the market price of adipic acid increased.

The main factories also cooperated with the increase in listed prices to stimulate market shipments, but after a short period of downstream purchases after the holiday, the market trading sentiment declined. Due to the lack of downstream demand support, with the decline in pure benzene transactions, cost support weakened, the adipic acid market was under pressure in the early to mid-term, and prices fell back high. In the second half of the year, due to the strong operation of pure benzene prices, the price of adipic acid stopped falling and rose slightly. Mainly due to the market's good expectations of crude oil prices, and the obvious intention of the manufacturers to support the market, the holders' low intentions were not large, and the offer rose slightly within a narrow range. However, due to the weak downstream demand and insufficient market transaction volume, as the end of the month approaches, market participants wait and see the factory settlement price guidance, and the market trading does not fluctuate much. On the whole, lack of good support for demand, limited market upside, it is expected that the short-term market will be mainly organized.

Overall market analysis

1、International market price comparison

2、Installation of adipic acid plant this month

Domestic adipic acid production enterprises in March overall average operating rate of 62%, is expected to start next month little change.

3、Raw material cost and change analysis

The domestic pure benzene market showed an upward trend this month, and the trend of international crude oil rose.

Volatility, pure benzene outer disk also follows fluctuations, but overall, crude oil trend is strong, pure.

The benzene outer disk also rose volatility, and the external news strongly supported the domestic market, boosting pure.

Benzene prices rose. This month, Sinopec's pure benzene listing price has risen for four consecutive rounds.

Great boost. At the beginning of the month, downstream enterprises faced the demand for replenishment after consumption during the holidays.

The sales of pure benzene market have rebounded. In the middle of the year, the external turbulence was weak, and the pure benzene market also declined. After a week of weak market conditions, the pure benzene market continued to run strongly in the second half of May, which was boosted again by external news. Especially in the last week, pure benzene's external disk rose sharply. . Near the end of the month, international oil prices maintained a volatile trend, pure benzene stagflation.

Retreat, weakening the support for the domestic pure benzene market, driving market sentiment to be weak.

Soft, superimposed the increase in storage costs in the East China Reservoir area, the large volume of ships arriving in the port in mid-June.

Stocks in East China Ports have risen again, and pre-parking and maintenance enterprises of hydrobenzene have been restored work, the supply is expected to increase, but the downstream demand is limited to increase, and the market is expected to continue push up support is weak, considering the pressure of loss, the market downward space is also limited, or adjust the narrow range mainly. Still need to pay attention to changes in international news.

4、Main downstream start-up analysis

The overall downstream start-up load is relatively low, and the raw material procurement is only maintained at a high demand. Currently, it is entering the traditional off-season, and the start-up is expected to change little from this month.

5、Market trend forecast for next month

Views and Summary

In June, the raw material pure benzene market is expected to remain strong as factors such as foreign epidemics improve and crude oil bottom rises. This month, the adipic acid plant opened at a high level, and the cost was somewhat supported. However, the supply is expected to increase next month, and it is difficult to improve the start of the downstream season. It is expected that the short-term adipic acid market will fluctuate within a narrow range..