The DOP Market is Falling Hard to Stop

DOP price and profit chart

At present, the demand side support of DOP market is limited, the focus of negotiation is constantly lowered, and the profit space is relatively limited.

As can be seen from the profit chart, the overall profit margin is still limited, compared with the profit margin in mid-October. Although the pressure on the cost side of DOP merchants has eased somewhat, the overall demand side is insufficient. In order to stimulate the shipment, the merchants can only offer profits passively, and the profit space is gradually narrowing. As of November 30, the theoretical profit in Shandong is about 30 CNY/ton, which is about 80 CNY/ton less than last month. Merchant price adjustment also fluctuates around cost.

As of November 30, the mainstream spot price in East China is 12,800 CNY/ton, up 675 CNY/ton, or 5.57%. At the beginning of the month, under the stable price of raw material octanol market, the offer in DOP market was a little weak in order to stimulate shipment, and most downstream factories waited for the future market to be further clear. However, with the low price center of raw material octanol market, the cost surface of the bearish market, DOP market vendors shipping rhythm is not smooth, actively sell goods at a profit, traders on the market sentiment is empty, the market under the pressure of low price news, the focus of discussion continues to move down, the decline is obvious.

DOP price chart

Although during the raw material raise, octanol market combined with the downstream users stage just appeared to be buying, market atmosphere is slightly better, but better strength is limited, substantial demand did not see improvement, restricting the DOP market momentum, DOP quotation for shortwave market appear more, a downward trend overall, prices are briefly pushed down.

From the cost perspective:

Since the beginning of the month, the octanol factory took the initiative to accept orders at interest. In the earlier days, the factory gave a large margin of interest, attracting buyers to fill positions one after another, and the factory's inventory was transferred to the downstream enterprises. The market center of gravity rebounded slightly. And benzene anhydride market in this month price center of gravity goes down substantially, the market is given priority to meet low replenishment.

The price of DOP market is also restricted by the demand side. Some companies still hold a bearish attitude towards the future market. The transaction between buyers and sellers tends to be deadlocked.