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Home > News > Paint & Coating News > Tritoluene is expected to continue

Tritoluene is expected to continue

ECHEMI 2019-09-17

PVC

In recent years, the domestic market for trimethylbenzene has been improving, and the price has been hitting a new high in the year. In early September, the mainstream negotiation price in the domestic market rose to 5900-6200 CNY/ton, up about 10% from the beginning of August. The author believes that the market price of trimethylbenzene in the later period is expected to continue to rise, mainly due to the following reasons.

Firstly, the market of basic raw materials has risen.

In the international sphere, the recent international oil price has gone up slightly. According to data released by the American Petroleum Association (API), API crude oil stocks increased by 410,000 barrels in the last week of August, gasoline stocks decreased by 878,000 barrels and refined oil stocks decreased by 1.2 million barrels. After the data were released, WTI oil prices rose 3.78% to $55.98 a barrel and Brent oil prices rose 3.72% to $60.43 a barrel. On the domestic side, the National Development and Reform Commission recently announced that the price of domestic gasoline and diesel oil has been raised by mechanism since 24:00 on September 3, raising by 115 yuan and 105 yuan per ton, respectively. The increase in oil prices will benefit the mindset of the merchants, which will bring about a good atmosphere in the domestic oil market in the near future.

The domestic price of tritoluene is expected to continue to rise under the good support of cost surface crude oil.

Recently, the domestic market price of heavy aromatics has been at a high level. Due to high raw materials and low processing profit, the enthusiasm of trimethylbenzene manufacturers is frustrated. In particular, many enterprises in Shandong have suspended production, resulting in the shortage of resources in the trimethylbenzene market and the general low inventory of manufacturers. From the current situation, orders for trimethylbenzene need to wait for queuing for delivery, leading to a sharp rise in prices in the field. In addition, heavy aromatic hydrocarbons (HAs) have been in a tight supply situation, which also supports the rising price of trimethylbenzene.

Third, downstream demand continues to be strong. Tritoluene is mainly used to reconcile the gasoline market. Summer is the peak demand for gasoline, air-conditioning oil demand is strong, leading to the price of gasoline has been relatively strong, leading to a better atmosphere for trimethylbenzene shipment. Recently, with the Mid-Autumn Festival and National Day holidays approaching, the number of people traveling has increased accordingly, which leads to another peak season of gasoline consumption. Beginning in late September, the stock of gasoline in the market will start one after another, which will drive the market to strengthen gradually, thus driving the price of trimethylbenzene to strengthen.

Generally speaking, the raw material price is still high, the production cost is difficult to loosen, or the price of tritoluene will continue to be favorable. And the short-term market resources are still tight, while the downstream demand is strong, the overall pace of shipment is faster, so that manufacturers still have a strong price mentality. Therefore, the domestic trimethylbenzene market will continue to operate at a high level in the short term, and prices in some areas are expected to reach new highs.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.

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