Butanone: Prices Rose Again After A Standoff

China Butanone price trend chart

Recently, the domestic Butanone market continues to deadlock, due to tight supply in the spot market, support prices to maintain firm, but the demand side continues to be weak, the market into a dilemma. Today, petrochina Lanzhou Petrochemical butanone quotation increased by 100 CNY/ton, breaking the current stalemate, the sentiment of the cargoholders to price, east China's offer pushed up to 10,500-10,600 CNY/ton near. There are two main factors supporting high prices:

1. export support can be positive inquiries from foreign investors

Since October, supported by the international market, international butanone prices have risen, foreign trade inquiries are more positive, leading to a good domestic export market. It is reported that the export orders of a large factory have been filled up before the end of the year, and the export price is discussed at 10,800 CNY/ton, which is obviously higher than the domestic price. Manufacturers shipped without pressure, quotation to maintain firm, but also offset the lack of domestic demand pressure.

1. Tight supply in the spot market supports prices to remain firm

Since the middle of September, affected by the shutdown of Hunan Zhongchuang, Hunan Ruiyuan, Fushun Petrochemical and Hebei Zhongjie, the operation rate of butanone plant declined rapidly, and the lowest operating rate was 53.66% during the period. In early November, with the restart of the Fushun petrochemical plant, the operating rate slowly picked up. Until now, the domestic butanone factory overall operating rate in 63.44%.

Among them, the upstream hydrogen device of Ruiyuan plant in Hunan is being repaired, and production is scheduled to resume in the middle of This month. Hebei Zhongjie device has no short-term operation plan; Hunan Zhongchuang plant has low starting load and unstable output. The parking plan of Ningbo Jinfa device will be saved in December, the specific time is to be determined.

On the whole, in addition to the maintenance of part of the equipment, the unstable volume of fire delivered in northwest China also caused the shortage of supply in the spot market. In addition, ningbo force majeure factors influence, local transportation is limited, spot supply is tight, holding merchants reluctant to sell sentiment. In South China, due to the reduction of planned shipping volume and high shipping cost, middlemen have no intention of lower delivery. Longzhong information forecast, short - term domestic butanone market will remain high consolidation, the price is easy to rise difficult to fall. Pay attention to the export market and the impact of market news on the market.