Raw material bottom rebound, new pentanediol price nadir exposed

Since November neopentyl glycol domestic market has been weak downstream demand, the main raw material isobutyl aldehyde double negative batter price continued to fall, neopentyl glycol price down open long, especially the raw material prices in the past one month continuously below low direct influence on the new e market, causing prices to fall is widening. Into December the decline of raw materials gradually slowed down, the new e market inquiry atmosphere has picked up.

After a month-long decline in the neopentanediol market, the price fluctuation also fell like a cliff. In just over a month, it basically gave up all the gains since the first three quarters. In November, the neopentanediol price dropped as much as 21%. New pentanediol price bottom once touched to the beginning of the low point. In the face of the rapid decline in the price of new glutaryl glycol, the rapid change of the market also makes the industry sigh as if returning to the pre-liberation.

Especially since entering the fourth quarter, the domestic chemical market is facing the strong and weak transformation, the terminal industry demand explosion and other adverse impact, in the first three quarters of the rise of such as rainbow products, most have been back to the original form. As the decline in raw materials deepens, the industry is beginning to notice that the root cause of the continued price weakness is the reversal of supply and demand caused by a massive reduction in end-industry demand.

Since the fourth quarter, the demand of neopentyl glycol downstream powder polyester resin industry began to enter the downward channel, especially after the implementation of power limit and production limit policy, the start of terminal powder industry has been seriously affected, among which the phenomenon of production reduction and shutdown is more obvious in South China.

Although to November electricity limit production policy gradually relax and gradually lifted, but powder market demand has never recovered, and enter the superposition of off-season effect at the end of the industry, the polyester resin orders plummeted, start by recent resin industry is generally low, the overall construction once dropped to less than fifty percent of the variation can be more intuitive.

So depressed for a long time in the face of the downstream demand, the new e factory in the past month shipment faced great pressure, leads to enter ZhangKu on December parts factory, and factory on mentality intensifying also further speed up the delivery price dip, new e low center of gravity was once close to the $ten thousand mark, industry attention.

In the second week of December, there were signs of bottoming after the price of isobutyral dropped to 7000 CNY/ton, and the bottoming rebound was reversed this week. The downstream industry for isobutylaldehyde rebound expectations were also realized this week, with the momentum of isobutylaldehyde rebound neopentyl glycol market buying atmosphere has been significantly improved, the most obvious change in price is the upward lifting of the low center of gravity, the high price to the middle end, prompting the early wide price difference to be repaired. After the raw materials turn a corner, the new e market may usher in the last wave of rebound at the end of the year, but the market still needs to pay attention to the downstream terminal market start changes.