Butanone: Demand recovery less than expected post-holiday market gains and losses

Back from the Spring Festival holiday, the overall trend of the chemical market is volatile. On the one hand, the sharp fluctuations of oil prices affect the market sentiment, leading to the spot market in the chemical period to follow the crude oil shock operation. On the other hand, after the Spring Festival, the demand recovery is not as good as expected, the market is mainly to digest the inventory, the sentiment of chasing high is cautious, so the demand release is slow, the market has not formed effective support, thus dragging down the market price.

The trend of the domestic butanone market after the Spring Festival is no exception. In the first week after the Spring Festival, the butanone market is supported by low supply and forms a trend of rapid rise. Due to the lack of demand support, high price turnover is weak, coupled with the restart of individual plant equipment, supply tension eased, prices began to fall.

Entering this week, peripheral crude oil, Russia and Ukraine conflict escalation led to another surge in crude oil, continue to form a certain support role for the chemical market. But from the demand side, the downstream construction load on the low side, end demand increase slowly, and the high mentality, supply side began to accumulate, both lead to the increase of the seller's delivery mentality, then open the pace of decline in market price of butanone, part of the early shipment to stock's status of ascension, in addition to downstream high mentality, counter-offer interacting, intention, The actual market transaction center of gravity on the low side.

At present, the supply and demand side of butanone is weak leading butanone market still has downward space. However, the current break of crude oil above $100 / ton is somewhat supportive of the market sentiment, and as the downstream resumption of production gradually improves, the demand side is expected to recover, so the trend of butanone market decline is not expected to last for long.