Chemical Weekly Ups and Downs in Brief (20221230-20230105)

Chemical Weekly Ups and Downs in Brief (20221230-20230105)

Up List.

Butadiene: The domestic butadiene market rose and then fell in this cycle, with Sinopec supply prices being raised continuously. The domestic market was boosted by the recent sustained high external market sentiment. During the week, Sinopec's supply prices rose continuously, supporting higher quotations from the industry. And with some of the northern sources of goods for export at a substantial mark-up transaction, the industry after the market is expected to be strong, try to significantly push up the offer, but the downstream into the market inquiry intention is general, the terminal resistance to high-priced sources of goods is obvious, demand facing the market drag, the spot offer after the fall, the market inquiry offer price difference gradually widened, the overall transaction stalemate is dominant. Under the cycle, the recent foreign market continued to move higher, coupled with Sinopec supply price firm, the bottom of the market still exists to support. However, terminal purchasing intentions are weak and there is no good news to guide demand for the time being. It is expected that the next cycle of the butadiene market will maintain a range of market trends. As of January 5, the delivery price in Shandong's Luzhong area was RMB8100-8200/tonne, while the negotiation range for East China's out-of-tank pick-up was RMB7,500-7800/tonne, with actual orders negotiable.

BDO: This week, the domestic BDO market is strong, New Year's Day holiday, Sichuan Tianhua, Sichuan Wanhua are restarted, the supply side is still delivering contract orders, the spot release is limited, the supply side to continue the intention of the market, Lanshan Tunhe bidding a substantial premium to 10,450 yuan / ton deal, the market buying boost is limited, the trade market is cautious, the mainstream offer slightly up, the downstream more into the market to wait and see, part of just a small single to fill positions, the acceptability of high prices is weak. The market sentiment in the middle of the week is strong, the spot supply in the field is tight, the trade market quotes continue to increase, the middlemen low price to sell, the downstream spot replenishment enthusiasm is not high, sporadic small orders to follow up, maintain the contract order delivery is the main. As of Thursday, the mainstream negotiation price of bulk water sources in East China was RMB10,000-10,300/tonne on exchange. Next week, the market spot supply is tight, the supply side will continue to support the market, the downstream spot replenishment enthusiasm is general, just demand inquiries to follow up, BDO market is expected to range fluctuations in operation, pay attention to the auction news and device maintenance situation.

Adipic acid: This week, the domestic adipic acid market pulled upwards. After returning from the New Year's Day holiday, the raw material pure benzene main camp listing price increased by 150 yuan / ton to 6650 yuan / ton, the cost side support increased. In addition, some of the downstream after the festival to prepare for the market, the demand side support is still available, adipic acid plant supply is tight, the continuation of the price mentality, this week's listing price and collection price rose 500 yuan / ton. Secondary market traders fear of loss increased, the centre of gravity of the offer has risen, but after the price is sharply higher, the downstream of the high price of a certain resistance, in addition to the international crude oil wide range of decline, increasing the market wait and see, is expected to short term domestic adipic acid market range finishing.

Decline list.

Acetone: This week, the domestic acetone market market is running weak, the centre of gravity of transactions fell. As of January 5, East China acetone market mainstream offer at 4,950 yuan / ton, down 525 yuan / ton compared with last week. Mainly due to the return of the New Year's Day holiday, the port inventory upgrade, the field circulation of spot resources have increased, the field trading atmosphere cooled, the mood of the stockholders under pressure, strong shipping sentiment, the quotation shock lower, coupled with the current weak downstream demand is difficult to change the status quo, the terminal factory into the market to buy the enthusiasm is low, the overall atmosphere in the field is cold, so the centre of gravity of market negotiations moved down.

DMF: This week, the domestic DMF market rebounded slightly after the fall. Before the New Year's Day and during the holiday, influenced by the lack of buying, the high price transaction was sluggish, DMF manufacturers' inventory level increased, and the offer was adjusted downward one after another. After the return of the holiday, the downstream pulp manufacturers have a certain stockpile demand, DMF manufacturers do not have a high workload, low prices go smoothly, traders have also improved the goods, the transaction atmosphere has slightly eased, supporting DMF prices stopped falling slightly rebounded. Next week, with the downstream shutdown holiday increase, demand support weakened, is expected to short term domestic DMF market fluctuations or not much.

Ethylene oxide: This week, the price of ethylene oxide between major regions was at RMB 6,300/ton. On the raw material side, the Asian ethylene market is still weak, the field device still maintains low load operation, the downstream multi-product demand side is weak, the field negotiation atmosphere is general, coupled with the approaching New Year's Eve, the downstream device load may be further adjusted downwards, the order follow up is limited, the short term consolidation is dominant. Overall, the centre of gravity of the ethylene oxide market shifted down during the week. The current overall supply of ethylene oxide is still loose, some regional supply is tightened due to the parking of the device, the downstream polycarboxylic acid water reducing agent monomer is generally supportive of the raw material market, later, it is expected that the domestic ethylene oxide market or consolidation.

In the short term, the bottom of the international crude oil futures market support is solid, or bottoming out rebound, the chemical market is expected to have a certain boost, but it should be noted that near the Spring Festival terminal demand is more and more weak, manufacturers have been retreating, and intermediaries are also waiting for the holiday, so it is expected that the overall trend of the chemical market in the short term or light running.