High International Energy Prices Oscillation Chemicals Market Rebound

Recently, as the international crude oil prices continue to rise, chemical industry demand rebound, chemical product prices have rebounded, the price of many categories of chemicals rose significantly.

From the previous situation in January, according to the Centaline Securities statistics show that the 330 products monitored, there are 196 varieties up, up varieties than the previous month significantly; 98 varieties down, the proportion of down varieties dropped significantly.

Recently, as the international crude oil prices continue to rise, the chemical industry demand rebound, chemical product prices have rebounded trend, the price of many categories of chemicals rose significantly.

From the situation last week (February 14-18), Guoxin Securities statistics show that the top chemical product price increases during the week were butadiene (+12.66%), soft foam polyether (+4.86%), aniline (+4.81%) and anionic surfactants (+3.84%).

From the previous January, according to the Centaline Securities statistics show that the 330 products monitored, there are 196 varieties up, up varieties than the previous month significantly; 98 varieties down, the proportion of down varieties dropped significantly.

Although since last week, the previous rise in the top chemical varieties of futures prices have fallen, but from the 2022 year, some of the varieties of market concerns still rose significantly.

Some categories of chemicals have a clear trend toward better demand. As of February 18 night close, soda ash futures main contract 2022 since the rise of more than 30%; methanol futures main contract rose more than 11%.

On the spot market, according to the business community monitoring data show that last week, soda ash pure inventory decline, the market is strong running. Guoxin securities research report that, considering the infrastructure recovery driven by float glass demand and photovoltaic glass production, soda ash supply and demand is still tight, soda ash industry in 2022 high boom or will continue.

From the specific segments, Guoxin Securities research report pointed out that the transformation and upgrading of energy structure brings development opportunities for new energy upstream materials; the demand for float glass driven by infrastructure recovery and photovoltaic glass production brings high boom for soda ash industry; the rapid recovery of global crude oil demand has driven the trend of international oil prices up, and the low-cost comparative advantage of coal chemical enterprises competitiveness emerges.

In a comprehensive view, the recent high international crude oil price consolidation, while the commodity market is driven by the cost and supply, the energy chemical sector appeared to rush higher and then fall back.

CITIC Capital Futures research report analysis that the global high-frequency oil inventories fell overall last week, the fundamental pattern of crude oil remains good, but the lower end of the chemical prices are expected to have a relatively strong wave of valuation repair.