Tumbled 6000 CNY/ton! Chemical raw materials are now 'falling off the cliff'!

Recently, some chemicals suddenly changed their directions, and they began to decline due to weak downstream demand. Bisphenol A products showed a cliff-like decline. The current average price of bisphenol A is 22,183 CNY/ton, which is down 6,000 CNY/ton within the month, or 21%, and traders are currently offering 22,000-22,500 CNY/ton. Under the dual-control policy, epoxy resin was under-operated, and the price of epichlorohydrin, one of the resin raw materials, remained high, which inhibited the purchase of raw materials for epoxy resin. The market is bearish on the outlook for bisphenol A.

It is also in a large chemical province that also encountered the "dual control" of energy consumption, but showed different results, which is surprising. According to the Coatings Purchasing Network, this situation is not unique in the recent chemical industry. From tepid trading to weak demand, narrow market declines to sharp declines have become a true portrayal of some chemicals in the near future.

The price of n-Butanol was 9,750 CNY/ton, down by 5850 CNY/ton or 37.5% from the beginning of the month; the price of isobutanol was 9612 CNY/ton, down by 4188 CNY/ton or 30.35% from the beginning of the month. Under the influence of "dual control" in Jiangsu and other regions, the start of downstream enterprises has declined, and some major factories such as Butyl Acrylate have shut down and reduced production. The downstream demand has just shrunk, and the volume of n-butanol and isobutanol has continued to decline.

Butadiene was quoted at RMB 6,975/ton, a decrease of RMB 3590/ton from the beginning of the month, a decrease of 34%. Under the influence of the policy, the start of some downstream factories in East China is restricted, and the fundamentals of market supply and demand are weak. Guangzhou Petrochemical implements 7000 CNY/ton, Maoming Petrochemical implements 6950 CNY/ton, and Zhongke Refinery implements 6900 CNY/ton.

The quotation of isooctanol was 12,000 CNY/ton, down about 5,000 CNY/ton from the beginning of the month, or 30.9%. Lihuayi quoted 12,000 CNY/ton, down 2,500 CNY/ton daily; Hualu Hengsheng quoted 12,000 CNY/ton, down 2,000 CNY/ton daily. The downtrend of isooctanol is negative, downstream DOP manufacturers have started to fall, and customer purchases are mainly demanded. The downstream PVC of DOP is currently restricted by the "dual control" of energy consumption, and the operating rate continues to be low.

DOP quoted at RMB 12,120/ton, down by RMB 2667.5/ton from the beginning of the month, or 18.04%. Due to the downstream PVC market dynamics, the industry's operating rate is less than 70%, and it is affected by the double control of energy consumption. At present, most of the PVC industry has reduced the burden or stopped work, and the demand for DOP is cold.

The price of Neopentyl Glycol was RMB 18,750/ton, down by RMB 1,850/ton from the beginning of the month, or 8.98%. Although neopentyl glycol has been doing its best in the first half of the year, the explosion in the real estate industry has had a great impact on aluminum profiles, building materials and powder coatings. In September of this year, the orders for polyester resin docking coating companies were significantly weakened, and market confidence was lacking. , It also caused a huge negative for neopentyl glycol, and the market plummeted.

TDI quoted at RMB 13,633/ton, down by RMB 700.33/ton from the beginning of the month, or 4.89%. The distribution market in East China is temporarily operating stably, and the distribution market price is low. Domestic products are around 13,400-13600 CNY/ton. Shandong Dongda Yinovi Polyurethane Co., Ltd. TDI domestically produced goods executes 13,600 CNY/ton; Zhejiang Mantangjin Supply Chain Management Co., Ltd. TDI domestically produced goods carry 13,500 CNY/ton. Policy power curtailment affects Guangzhou and Jiangsu downstream markets, power curtailment and environmental protection policies restrict production, terminal market demand is weak, sponge market transactions are average, the curing agent market, runway, and elastomers are generally sold in a cold range, and the domestic TDI market performance is weak in the short term .

In addition, some companies have announced product price reductions:
Shandong Jinyimeng Group’s quotation of ethyl acetate is lowered by 500 CNY/ton, and the price is 10,000 CNY/ton.
Jiangsu Lianhai Acetate Biotech's quotation of ethyl acetate has been lowered by RMB 300/ton, and the price is now RMB 10,400/ton.

The mainstream price range of hydrogenated benzene market in East China is 7800-7900 CNY/ton, down 50 CNY/ton from the previous trading day.

The quotation of polymer grade propylene for Shantou Bo Petrochemical fell 50 CNY/ton to 8001 CNY/ton.
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With the countdown of energy consumption "assessment" at the end of the year, more and more provinces, cities and regions have joined the "double limit" queue for strict energy consumption control, and more and more chemical companies have reduced their burdens or even stopped production. This is followed by a decrease in the operating rate of enterprises and a decrease in the demand for raw materials. Under the negative downstream demand, even if the high quotation is not available, companies can only choose appropriate price cuts to protect customers from grabbing orders and try their best to survive the cold winter.