1、 Price trend

In April, the decline of domestic butadiene market deepened. According to the monitoring price of the business agency, the domestic butadiene market price at the beginning of the month was 5127 yuan / ton, and the domestic butadiene market price at the end of the month was 3890 yuan / ton, with a 24.14% drop in the month. The price was 50.35% lower than the same period last year.

2、 Analysis of influencing factors

Products: in April, the domestic butadiene market experienced a low-end shock after a sharp decline. At the end of March and the first half of April, there was a large pressure on the external market supply, and the transaction price of some sources of goods was slightly lower, dragging the domestic spot market. In addition, the supply of domestic manufacturers is stable, the trend of downstream synthetic rubber market is not good, and the weak situation of crude oil and bulk commodities is superimposed. The external news and supply and demand fundamentals of butadiene market are all short, and the market continues to decline. In the middle of the month, after the market fell below the 4001st line, the lower reaches of the market searched for bargains and made up their positions. In the middle of the month, the market gradually stopped falling. With the supply price of Sinopec rising, other suppliers rose, and the market rebounded slightly. However, due to insufficient transaction follow-up and crude oil falling to a new low, businesses are under pressure.

In terms of enterprises, Sinopec’s East China butadiene price has been reduced by 1200 yuan / ton to 4000 yuan / ton on a month on month basis; Nanjing Chengzhi 10 The 10000 t / a oxidation and dehydrogenation unit was shut down on April 7, and the shutdown status is continuing at present; the 100000 t / a oxidation and dehydrogenation unit of sippon Petrochemical Co., Ltd. is now in normal operation after being restarted at the end of March, and the manufacturer plans to shut down in early May, please continue to pay attention to the details; the price of shenhuaning coal butadiene fell by 770 yuan / ton to 3500 yuan / ton on a month on month basis, and the 64000 T / a butadiene unit is planned to shut down for maintenance for about 40 days on May 5.

Industrial chain: SBR: in April, the domestic market price of SBR rose first and then fell. At the beginning of this month, the international crude oil rebounded, and Tianjiao futures also explored the range, the news surface obviously improved the mentality of the styrene butadiene industry; in addition, the raw material butadiene market stabilized after the fall, the market trading was significantly better than that at the end of last month, the industry actively entered the market to make up for the empty orders in the early stage, and some of the off-site idle funds entered the market, the market speculation atmosphere gradually rose, the first-hand single opening households did not intend to lower out, and the broad price increase became the main factor Supply prices also take the opportunity to rise. However, terminal enterprises tend to keep a wait-and-see attitude. Affected by international public health events, their export orders have been greatly reduced. They only need to buy styrene butadiene rubber to maintain rigidity, and have limited acceptance of high-end offers. Since the middle of the month, the market inquiry atmosphere has become weak again, the quotation of merchants has become loose, and the quotation of high price has fallen down; at the end of the month, under the pressure of trading and investment, most of the manufacturers hang upside down for shipment, and the supply price of the sales company has declined, while the price of raw material butadiene continues to rise, and the market wait-and-see atmosphere has risen again, waiting for the market to restart after the festival.

Cis-1,4-polybutadiene rubber: the price of raw material butadiene is at a low level, cis-1,4-polybutadiene rubber starts at a high level, and the spot inventory is growing; downstream factories purchase cautiously, and the purchase price tends to be more depressed in the declining market. The ex factory and market prices of China’s cis-1,4-polybutadiene rubber fell to a historical low in early April. After the middle of the year, with the early delivery of empty orders, hot money entering the market to prepare goods, product enterprises and other replenishment to take goods, the social inventory pressure slightly shifted; the speculation atmosphere gradually rose, the market premium increased, and the supply price of cis-1,4-polybutadiene rubber increased. By the end of the last ten days of the business, the replenishment of middlemen and arbitrage market was over, and then, in case of negative factors such as the price of crude oil hanging upside down, the speculation heat of the cis-1-polybutadiene rubber market fell, and PetroChina South China took the lead in falling the factory supply price, and the market offer also fell. At the end of the month, various sales companies announced the news of new price drop in May, but when the price of butadiene went up, the market fell into wait-and-see situation again.

Industry: according to the price monitoring of the business agency, in April 2020, there are 39 kinds of commodities in the list of rise and fall of bulk commodity prices in the chemical industry sector, including 26 kinds of commodities with an increase rate of more than 5%, accounting for 29.2% of the number of commodities monitored in the sector; the top three commodities with an increase rate are acetone (77.02%), acrylic acid (21.76%) and hydrogenated benzene (20.86%). There are 45 kinds of commodities falling on a month on month basis, 21 kinds of commodities falling by more than 5%, accounting for 23.6% of the number of commodities monitored in the sector; the top three products falling are ethylene (- 31.64%), butadiene (- 24.14%) and hydrochloric acid (- 22.37%). This month’s average rise and fall was 0.37%.

3、 Future forecast

On the positive side, the domestic unit maintenance, the external supply pressure eased slightly in May, the start-up of the synthetic rubber industry was high and some units were expected to restart. On the negative side, the inventory of the downstream synthetic rubber industry continued to be high, the supply of domestic butadiene trade link was still relatively abundant, and the foreign trade orders of the end tire and products industry shrank. In May, the northern manufacturers Ningmei, Zhongsha and Yangba in East China all have parking maintenance plans, and Sinopec’s internal supply is tight and balanced; meanwhile, the starting load of the main downstream synthetic rubber industry is acceptable, which supports the domestic butadiene spot market. The short-term market is dominated by suppliers. With the firm supply price, the market follows a small increase. However, businesses expect that the arrival of cargo in the second half of the month, and the terminal demand for tires and automobiles continue to be depressed, which makes it difficult to effectively relieve the inventory pressure in the circulation of synthetic rubber, and still drag the butadiene market. Overall, it is expected that the supply and demand will slightly improve in the first half of May, and the market may be consolidated. However, the transaction follow-up is insufficient, the expectation of cargo arrival at the port, and the trend of synthetic rubber market drag down. In the second half of May, the market may regain its weakness. It is suggested to pay attention to the internal and external transactions, and be cautious in position.

Data shows that the natural rubber commodity index on April 29 was 28.43, down 0.12 points from yesterday, 71.57% from the highest point of 100.00 (2011-09-01), and 4.22% higher than the lowest point of 27.28 on April 02, 2020. (Note: cycle refers to 2011-09-01 to now)

As shown in the above figure, from the beginning of January to April 2020, the natural rubber market as a whole shows a small surge and continues to fluctuate. There is a small V-shaped rebound in the middle of the downward trend. The May Day holiday horse is coming, and the current market change is relatively small. According to the data of natural rubber (standard 1) in East China monitored by the business agency, the main quotation of Baodao whole milk in April 1, 2018-19 is about 9294 yuan / ton, and the main quotation in April 30 is 9600 yuan / ton, with a monthly increase of 3.29%; among them, the highest price of this month is 9810 yuan / ton on April 20, the lowest price is 9200 yuan / ton on April 2, with a monthly maximum amplitude of 6.63%. As a whole, on March 18, 2020, the main contract of Shanghai Rubber broke 10000 yuan. On March 30, the lowest price in Shanghai rubber market was 9115 yuan / ton, which again set a new low. As soon as possible, the price rose slightly by more than 3% in April, but the price of Shanghai Rubber this month is still in the lowest range in 10 years.

Factor analysis:

Supply: in China, factors such as delayed rubber cutting in production areas, dry weather, insect disease, poor demand and low rubber price have a great impact on rubber cutting. At present, China’s domestic rubber areas have not been cut in large quantities, even if there are cuts, the amount is very small, the willingness to cut is not strong, and the production of new rubber has not affected the current market. It is generally believed that the domestic cutting will be postponed to the middle and late May. Rubber producing countries in Southeast Asia: the epidemic situation is still deteriorating, and currently in the cut-off period, so it is more likely to delay the cut. Thailand: decided to extend the emergency decree until the end of May. It is said that the production and transportation of Tianjiao in Thailand is relatively normal. Malaysia: the port of Penang is reopened to facilitate the export of rubber in southern Thailand. India: the current situation is grim, and announced the discontinuation of Chinese kits. Cambodia: according to the report of the General Administration of rubber, the average price per ton of rubber in the first quarter of 2020 is US $1420. In the first three months, China’s rubber exports reached US $75.34 million, and Cambodia’s rubber exports were mainly to China, Vietnam, Singapore, Malaysia and other countries.

Inventory: data shows that as of April 26, the natural rubber inventory of the previous period was 239690 tons, and the warehouse receipt was 235210 tons, 1109 tons and 1740 tons less than that of last week respectively; from the perspective of the rubber inventory pressure of the exchange, the full latex Ru inventory was stable, and the pressure was relatively small, the NR inventory of rubber 20 climbed, and the pressure gradually increased. The data shows that the inventory in Qingdao Free Trade Zone has increased slightly, and the rubber trade inventory outside the zone has exceeded 800000 tons, a new high since the statistics. The inventory of Tianjiao in the downstream factory is about 15-60 days, and the manufacturer’s purchase intention is not strong.

Import and export: according to customs data, in March 2020, China imported 62000 tons of natural and synthetic rubber (including latex), up 3.6% year on year. From January to March 2020, China imported 1.659 million tons of natural and synthetic rubber (including latex), up 5.6% from 1.571 million tons in the same period of 2019.

Demand: in terms of tyres, China’s output of outer tyres in March was 71.404 million, down 7.8% year on year, according to the National Bureau of statistics. From January to March, the total number of outer tubes produced was 152059000, down 19.4% year on year, which was mainly affected by the impact of the epidemic in the first quarter on China. Since mid to late March 2020, the severe situation of foreign epidemic situation has affected half steel tire and all steel tire in European and American market. The overseas orders of China have been cancelled or delayed delivery, and the export demand of domestic tires has declined significantly, which has seriously affected the production of domestic tire manufacturers. Data shows that as of the week of April 23, the operating rate of domestic semi steel tire manufacturers was 58.08%, down 1.64% month on month, down 7.63% year on year; the operating rate of all steel tire manufacturers was 64.76%, up 0.72% month on month, down 6.40% year on year, and the weak demand side led to the weakness of overall rubber consumption. In terms of automobiles, from January to March 2020, China’s automobile production and sales totaled 3.474 million and 3.672 million, a year-on-year decrease of 45.2% and 42.4%; among them, China’s automobile sales volume in March was 1.43 million, a year-on-year decrease of 43.3%, a significant increase compared with 80% in February. With the situation of the overseas epidemic becoming more and more severe, HS Markit lowered its forecast of global auto sales. The Agency predicted that global new car sales would drop 22% to 70.3 million vehicles this year compared with the same period last year, and the new car sales in China, the world’s largest auto market, would drop 15.5% to 21 million vehicles this year. According to the forecast of geyser Automobile Research Institute, the retail sales of passenger vehicles in China in the second quarter of 2020 is expected to be 13% lower than that in the second quarter of 2019. At present, more than ten cities in China have introduced incentive measures to encourage car purchase, so as to promote the car market back on track as soon as possible. Some institutions predict that under the new round of monetary easing tide of the global central bank and the stimulation of various policies, the domestic automobile sales market and the main foreign automobile sales market will recover in the second quarter.

Substitutes: US crude oil futures collapsed on 20th of this month, once a negative value. Under special circumstances, global demand shrank, storage capacity was in an emergency, and investors’ pessimism was serious. Affected by this, chemical products in the domestic futures market fell sharply, with a significant decline in Shanghai rubber. The main contracts of Shanghai Rubber fell 3.2% to 9800 yuan per ton in 2009, while the main energy contracts of the previous period fell 3.1% to 8045 yuan per ton in 2006. But then the rise of crude oil led to the rebound of chemical products and rubber prices. Among them, crude oil is the upstream of butadiene, and also the upstream of synthetic rubber. Synthetic rubber can be used as a partial substitute of natural rubber. The rise and fall of butadiene determines the purchase and use of synthetic rubber by tire factories, especially the rare trend of international crude oil this month, which has a direct and obvious impact on rubber.

Future forecast:

According to the analysis of business association, from the perspective of domestic and international cutting situation, the current output may be the minimum period of this year. From the downstream situation, it is possible that in the next few months, some foreign countries will force “economic recovery” in spite of the epidemic. In the current special period, the future economic situation is particularly unknown, and the epidemic control situation has become the most direct factor determining the demand. In the aftermarket, if the automobile consumption situation changes, the demand pulls, and the Tianjiao market recovers; but if the mandatory recovery, the demand does not really pull the consumption, coupled with the later cutting, the output and inventory increase, then the Tianjiao market may be more difficult to turn over.

1、 Price trend

According to the monitoring of bulk data of business agency, the trichloromethane market in Shandong Province rose first and then fell in April. The average price of trichloromethane at the beginning of the month was about 1550 yuan / ton, rising to about 1700 yuan / ton in the middle of the month, up 9.68%, and falling to 1500 yuan / ton at the end of the month, down 3.23% as a whole.

2、 Cause analysis

Product reason: in the first half of April, due to the support of high price liquid chlorine on the cost side, and the low inventory of trichloromethane production enterprises, the price of trichloromethane continued to rise. However, due to the poor demand in the downstream market, after the middle of the month, the price of Trichloromethane continued to decline due to the start of competitive shipping for fear of inventory pressure. At present, the quotation in Shandong is about 1500-1550 yuan / ton, Jiangxi Liwen is about 2050 yuan / ton, and Jiangsu is about 2800 yuan / ton.

Industry chain: in the upstream, the domestic methanol market has declined, and the price of each region has been adjusted according to the supply and demand relationship. The downstream just needs to prepare goods, and the traders operate cautiously. At present, the price of 1620 yuan / ton is about; in the month, the liquid chlorine market is high and volatile, the market supply is well supported, and the enterprise’s shipment is acceptable, and the current quotation in Shandong is about 700-900 yuan / ton. In the downstream, the domestic refrigerant market is not good, the domestic and foreign demand is not as expected, the market trading is cold, and the current price is around 17000 yuan / ton; the recovery of solvent and pharmaceutical pesticide industry is slow, the demand is light, and the price support for chloroform is insufficient.

3、 Future forecast

According to the data analyst of methane chloride of business association, at present, the market of trichloromethane is gradually showing a situation of supply exceeding demand, and the situation of enterprises bidding for shipment is obvious. However, due to the high production cost, the space for price reduction of trichloromethane is limited, and it is expected that the operation will be weak in a short time.

1、 Price trend

According to the data monitored by the business association, as of April 27, the ex factory price of rubber grade and high-quality silica was 4566.67 yuan / ton, and the market price of silica in China was relatively stable.

market analysis

Products: the stable operation of the white carbon black market is the main factor, the merchants are actively shipping, strong willingness to hold the price, with the public time being eased, the logistics has recovered, the shipping is smooth, most of the downstream maintain the wait-and-see just need to purchase, the actual single volume is limited, and the inventory is general..

Industry chain: the upstream hydrochloric acid market continues to be stable, the market trading atmosphere maintains the previous level, and the manufacturer has a strong quotation atmosphere for hydrochloric acid.

Industry: on April 26, the chemical industry index was 622, up 1 point compared with yesterday, down 38.78% compared with 1016 (2012-03-13), and up 4.01% compared with 598, the lowest point on April 8, 2020. (Note: cycle refers to 2011-12-01 to now)

Future forecast

According to the white carbon black analyst of business association, the rubber grade white carbon black market will continue to be stable in the short term. (the above prices are provided by the major manufacturers of silica all over the country and analyzed by the business silica analysts for reference only. For more details, please contact the relevant manufacturers for consultation.)

1、 Price trend

According to the price monitoring of the business agency, the market price of asphalt is stable this week, and the price of asphalt is reported to be 2252 yuan / ton, which is stable compared with that of last week.

2、 Analysis of influencing factors

Product: this week, the international oil price fell, the asphalt market and the terminal demand release were limited, and the social inventory consumption was slow. However, the asphalt manufacturers sold at a high price, and the asphalt market price remained stable.

Industry chain: WTI futures delivery dropped international oil prices, crude oil prices fell, the “US Iraq” relationship between China and the United States was once again strained, geopolitical risk factors increased the premium space of crude oil; at the same time, OPEC + and other oil producing countries gradually put production reduction on the agenda, active production reduction superimposed by movable production reduction brought certain boost to the market. International oil prices fall first and then rise.

In terms of asphalt Market: at the beginning of the week, driven by the increase of Sinopec and PetroChina refinery asphalt prices, but then on Tuesday, the international crude oil plummeted, driving the asphalt price down. This week, prices in the northwest and Northeast were basically stable. The southern region just needed to support the shipment. In addition, some resources of the refinery were transferred across regions, which led to smooth shipment of the refinery. The inventory decreased significantly. The price of asphalt market rose and fell steadily.

3、 Future forecast

Lu Xingjun, an asphalt analyst with business club, believes that: the operating rate of domestic refining plants has reached a high level, the release of asphalt terminal demand is limited, and the low oil price has depressed the market mentality, and it is expected that the short-term asphalt market price will be weak and stable.