Market Analysis - Monthly Report - August,2020 - Vinyl acetate&Cyclohexanone

Vinyl acetate monthly report for Aug 2020

Overall market analysis

In August, the domestic vinyl acetate market was reduced by 200 CNY/ton mid-month. This month, the prices of raw material ethylene and acetic acid have been lowered overall, and the price of calcium carbide has risen. Therefore, although the profits of the ethylene process have increased, the profits of the calcium carbide process are still losing more. This month, the market is still in a state of two weaknesses in total demand, and the overall transaction situation is still average. The downstream just needs to purchase mainly, the upstream shipments are still not large, and the upstream and downstream are both cautious.

Conclusions

Looking at the market outlook, the September peak season is approaching, and the current market operating rate remains high. However, with the rebound in market outlook, prices are still expected to rise, and the vinyl acetate market is expected to rise next month.

Cyclohexanone monthly report for Aug 2020

Overall market analysis

Since the beginning of August, crude oil fluctuated strongly at the beginning of the month, and the raw material pure benzene CFR China’s external disks fluctuated at a high level, which increased domestic selling prices. During the week, Sinopec’s listed price of pure benzene increased by 100 yuan to3450 CNY/ton, coupled with the maintenance of Hualu Hengsheng plant, the shutdown of Luxi’s 100,000-ton oxidation plant, the on-site supply tightened, and the pressure on manufacturers’ shipments was not great. The main cyclohexanone plants increased their prices following the trend of raw materials. The price of ethylene has dropped significantly, dragging down the domestic pure Benzene market, and the pressure of supply and demand in the pure benzene market is still relatively large, which impacts the confidence of the domestic market to a certain extent. Shandong market prices have been lowered successively, and the downstream chemical fiber market demand atmosphere is not high. The price of hexanone fell. As of the end of the month, the downstream caprolactam was stable. The chemical fiber market was concentrated and just needed to be purchased. Demand improved. Manufacturers' willingness to make profit shipments weakened. Most of them continued to increase prices. Solvent market demand remained stable, and traders' quotations followed.

Conclusions

Looking at the next month, the contradiction between market supply and demand still exists, restricting the continuous increase of cyclohexanone prices. Zhongyu Information believes that the short-term market maintains interval adjustment and operation. In the second half of the month, as the National Day holiday approaches, downstream stocks will be stocked in advance or the market will continue to rise. Need to pay attention to the upstream raw material dynamics and downstream receiving mood changes.