South China Index narrows downward
Most of the classification index is flat
Last week, the domestic chemical product market moved down. Judging from the 20 varieties monitoring of broad transactions, 3 products have been increased, 8 products have been reduced, and 9 are flat.
From the perspective of the international market, the international crude oil market fluctuated lower last week. During the week, the situation of Russia and Ukraine and Iran’s problem stalemate was difficult to break, and the supply of supply tightening continued; however, the economic weak situation always suppressed the upward of oil prices, the market concerned continued to increase, and international oil prices fell significantly. As of January 6, the settlement price of the main contract of WTI crude oil futures in the United States was $ 73.77/barrel, which was reduced by $ 6.49/barrel from the previous week. The settlement price of the main contract of Brent crude oil futures was $ 78.57/barrel, which was reduced by $ 7.34/barrel from the previous week.
From the perspective of the domestic market, the crude oil market was weak down last week, and it was difficult to boost the chemical market. Near the Spring Festival, domestic enterprises have been suspended from work one after another, and the demand has been weak to drag the market rising, and the chemical market is weak. According to the data monitoring data of Guanghua transaction, the price index of the South China Chemical Products was lower last week, and the price index of the South China Chemical Products (hereinafter referred to as the “South China Chemical Index”) was 1096.26 points, which fell 8.31 points compared with the previous week, a decrease of 0.75% Essence Among the 20 classification indexes, the 3 indexes of toluene, two giant, and TDI have risen, and the eight indexes of eight indexes of eight indexes of eight indexes of aromatics, methanol, acryl, MTBE, PP, PE, formaldehyde, and styrene were reduced, while the remaining indexes remained stable.
Figure 1: Reference data of South China Chemical Index last week (base: 1000). Reference price is quoted by traders.
Figure 2: Trend of South China Index from January 21st to January 2023 (base: 1000)
Part of the classification index market trend
1. Methanol
Last week, the methanol market was on the weak side. With the international crude oil market prices fall, the market mentality becomes weaker, especially many downstream enterprises holiday in advance, the port spot shipment situation is not good, the overall market pressure to fall.
As of the afternoon of January 6, the methanol price index in South China closed at 1140.16 points, down 8.79 points or 0.76% compared with the previous week
2. Sodium Hydroxide
Last week, the domestic liquid -alkali market was weak and stable. Near the Spring Festival, the popularity of market transactions has decreased, demand for purchasing weakens, enterprise shipments are slow, and there is no good support for the time being, and the overall market is steadily weak.
Last week, the domestic alkali market continued to operate steadily, but the atmosphere of market transportation was weakened compared with the previous period. The pressure on the shipments of enterprises gradually increased, and the market was temporarily operating.
As of January 6, the pyrine price index in South China closed at 1683.84 points, which was the same as the previous week.
3. Ethylene Glycol
Last week, the domestic ethylene glycol market weak performance. Within the week, some of the toxic textile factories have stopped for a holiday, demand reduced, port shipments reduced, oversupply situation continued, the domestic ethylene glycol market weakened.
As of Jan. 6, the glycol price index in South China closed at 657.14 points, down 8.16 points, or 1.20%, from the previous week.
4. Styrene
Last week, the domestic styrene market weakened operation. During the week, under the influence of the epidemic and off-season, the downstream construction decreased, the demand followed up was limited, and the rigid demand was maintained, so the market was difficult to be boosted, which was weak and downward.
As of January 6, the styrene price index in South China closed at 950.93 points, down 8.62 points, or 0.90%, from the previous week.
Post -market analysis
The market’s concerns about the economy and demand prospects continue, the market lacks strong and favorable, and international oil prices are under pressure. From a domestic point of view, as the Spring Festival is getting closer, the terminal demand becomes more sluggish, and the atmosphere of the chemical market is under pressure. It is expected that the domestic chemical market may continue to be disadvantaged in the near future.
1. Methanol
The overall operating rate of the main olefin device has improved in the improvement of profits. However, because the traditional downstream is near the Spring Festival, some companies have stopped working on vacation in advance. The demand for methanol is weakened, and the demand side support is weak. Taken together, it is expected that the methanol market is expected to operate weakly.
2. Sodium Hydroxide
In terms of liquid alkali, before the Spring Festival holiday, some downstream devices or parking will enter the holiday, the demand is expected to decline, and the superimposed foreign trade orders are gradually delivered and completed. Under the influence of multiple negatives, it is expected that the liquid alkali market may decline.
In terms of caustic soda tablets, the downstream stock consciousness is not high, and the superimposed high price restricts the downstream purchasing enthusiasm to some extent. It is expected that the caustic soda tablets market may have a weakening trend in the near future.
3. Ethylene Glycol
At present, the downstream polyester production and sales continue to be depressed, the demand for ethylene glycol is weak, the lack of good support for demand, oversupply situation continues, it is expected that the recent domestic ethylene glycol market or continue to maintain low shocks.
4. Styrene
With the restart of part of the device and the new device into production, styrene supply will remain incremental, but the downstream has entered the holiday phase, the demand is not significantly improved, styrene or weak shock is expected in the short term.
Post time: Jan-12-2023