ethylene
The Asian ethylene market bottomed out in August. In August, Asian naphtha prices continued to fluctuate downward trend, Northeast Asia ethylene and naphtha price gap maintained a low level, gradually relaxed at the end of the month, but still below the break-even gap. Due to the profit spread, naphtha cracking unit has been maintained low, the market spot supply is less. Early due to the weak downstream demand, ethylene prices fell in the first half of the month, the middle of the bottom in the low consolidation. Near the end of the month, some downstream prices recovered, staged demand recovery and low raw material inventory, prompting downstream factories and traders to actively search for goods in the market, the buying atmosphere improved, coupled with the lack of spot in the field, ethylene prices in Asia began to rebound. CFR Northeast Asia’s daily average ethylene price closed at $901 a ton as of Aug. 30, down $10 a ton from the same period last month. CFR Southeast Asia’s daily average closed at $981 a tonne, flat from a month earlier; The regional spread was as wide as -100 USD/t and ended the month at -80 USD/t. The spread between ethylene and naphtha in Northeast Asia was the lowest in the month at $109.25 / ton, ending the month at $219.5 / ton.
Pure benzene
In August, the domestic pure benzene market trend shock lower, the market low rebound range is relatively limited. In the middle and early ten days, crude oil and pure benzene external plate continues to decline, the import cost moves below the line, Sinopec pure benzene listed in the month cumulative reduction of 1350 yuan/ton to 7500 yuan/ton, East China pure benzene market sharply down; In the latter half of the year, crude oil continued to rise, pure benzene external market strong upward, giving some support to the market, the price of pure benzene market rose, the highest market negotiation climbed to 7850-7900 yuan/ton, but the market upward trend did not continue, crude oil and external market fell back, so the East China market negotiation back to 7400-7450 yuan/ton. Near the end of the month Sinopec listed a small increase of 100 yuan/ton rose to 7600 yuan/ton, the market again small repair. As of August 31, East China pure benzene market negotiation reference 7650-7700 yuan/ton, North China market mainstream quotation in 7600-7650 yuan/ton, downstream large purchase intention in 7700 yuan/ton.
Asian styrene
Early August Asia styrene shock down, late recovery. It is mainly guided by alternating cost side, supply and demand fundamentals and domestic market trends in China. Styrene producers continued to be squeezed by high costs and weak demand this month. In northeast Asia, due to supply enough, and the merchants in the fourth quarter is expected to weak demand, southeast Asia, India and other buyers of short-term lack of interest in Asian cargo now, the current economic situation is considered to be a drag on styrene weak demand, the main reasons for the downstream of ABS and PS demand weakness, at the end of the middle prices had dipped to $1000 / ton CFR China nearby. Late, by the periphery of the strong and China’s domestic renminbi market pulled up, the center of gravity has picked up. But due to the lack of buying interest, the market talks remain quiet. Producers across Asia say negotiations are under way for fixed-term contracts for next year. Producers expect buyers to make fewer purchases as end-user demand in the region is expected to be weak going forward. In addition, Asian styrene producers are likely to maintain their operating rates in September, about 70%-80% in South Korea and 75%-80% in Taiwan. As of the close of trading on August 29, CFR China closed at $1097-1,101 / ton, down $53.5 / ton month-on-month.
Domestic styrene
In August this month East China styrene sharply rose, wide shock. At the beginning of the month, the spot high premium structure is expected to repair, especially the collapse of crude oil, commodity futures are generally thwarted, raw materials of pure benzene fell sharply, styrene is difficult to find support, the spot easily fell below 9000 yuan/ton mark to open the slide channel. For individual big enterprise in shandong shipping prices low, obvious impact on mainstream east China market, and crude oil and commodity futures weak downward, sinopec pure benzene listing price continued to cut under increasing pressure, east China main port stocks have rebounded, styrene spot market pressure heavier more down the weak, and constantly refresh year low, close, as of August 18, East China spot talks fell to 8180-8200 yuan/ton. After the continuous decline, the international crude oil price surge, chemical commodity futures generally turned strong, raw material pure benzene center of gravity recovered, styrene quickly rebound, especially in the latter part of the short-fill plate actively chase up the coordination, spot negotiations again on the 9000 yuan/ton round mark. Although with the end of delivery, part of the profit on the high fall bag for the safety of continuous high blocked, but traders holding is not high, the floor just need to cover the right amount, part of the exchange trade positive, trading tends to game shock. As of the close of August 29, East China spot around 9040-9060 yuan/ton, month on month up 60 yuan/ton.
Post time: Sep-02-2022