Market Analysis - Monthly Report - November, 2020 - Phthalic Anhydride

What's hot and trending this month

1) In November, the PA market declined successively, but still showed a rising trend overall;

2) In November, naphthalene PA continued to enlarge profit margin, especially OX-PA, the enterprise started to improve;

This month's market summary

This month, the PA market continued the trend of the previous month, continued to rise, and the rally more than the previous enlarged, but in the late period, the signs of a clear peak, prices began to fall, but mostly a small negative. So the price of PA is still running high. In November, PA prices continue to soar, PA profit increased significantly, the profit space is huge, although the profit is more objective, but there is still a gap between PA. In view of the rise in profits, the enterprise started more  fully. At the beginning of the month, the domestic PA market full open, to become a new high in the past two years, the same time the month naphthalene method synchronous with the rise. But late start, related raw material resin phenyl ethyl olefin and MA are peaking, downstream plasticizer cost pressure, resistance is also gradually thick, decline in demand for PA, plate of emotions which turns pale, orders start to decrease, benzene anhydride price corresponding back, but so far the decline is not large, raw materials and goods compactly supported, is Yin down trend. From the point of view of raw material, PA continued to rise under the driving force, PA and industrial naphthalene all have up, because of the PA itself has a wider profit area, easy to digest the raw material volume, so the cost of the impact on the PA. The trend of downstream plasticizer is weak, the terminal demand is not good, few inquiries to PA, short - term just need to restrict the storage of PA downward space.

Next month market forecast

The spot supply of PA industry is general, within a month 2 big factories each have a set of equipment overhaul, but just need to restrict, the delivery process is slow. Downstream plasticizer trend downward, to the PA just need lack of power, there is bargaining sentiment. Raw material o-benzene adjustment, industrial naphthalene high deadlock, the overall cost of the stronger, but the current effect on PA is not big. At present, the international crude oil close fluctuates the movement, to the PA influence is not big. Aftermarket PA market continued to fall.

Factory stoppages in China

In November, domestic PA plant operating rate of about 75%.

China's PA export trend in 2019-2020

According to customs statistics, in October 2020, China exported 1,193 tons of PA and the average export price was US $678.0754 / ton. In October 2020, China imported 962.396 tons of PA and the average import price was US $691.22 / ton.
Note: The General Administration of Customs will no longer release the import and export data of January and February separately in 2020. Instead, they will be released to the public in March. January and February will be equally divided.

Summary and views

In November, the domestic PA market continued to rise, but toward the end of the week the market atmosphere turned pale, prices began to fall. At present, the site is still tight goods is good, but the downstream plasticizer trend downward, but the high price of raw materials resistance is not reduced, it is expected that the short - term PA market negative continued.