The domestic butadiene market continued to fall, and the European price fell sharply at the beginning of the week, which affected merchants’ concerns about the supply pressure of the global market. At the same time, the domestic northern spot resources were abundant, and the poor transaction dragged down the weak market. As the price of butadiene declines, the downstream will make up for bargains periodically.

According to the sample data monitored by the business community, from November 25 to December 2, the domestic butadiene market price fell from 6763 yuan/ton to 6366 yuan/ton, a 5.86% drop in the cycle, a 12.23% month on month decline and a 4.03% year-on-year increase. In terms of price, the delivery price in Shandong Luzhong area is 6500-6600 yuan/ton, and the self inquiry offer price in East China is 6000-6300 yuan/ton.

In terms of external market: the closing price on December 1, while the external price of butadiene in Asia was stable: FOB South Korea reported 745-755 dollars/ton; China CFR quoted 755-765 US dollars/ton. The external price of butadiene in Europe remained stable: FOB Rotterdam closed at 495-505 dollars/ton; FD Northwest Europe closed at 545-555 euros/ton.

Region./Country./Closing price./Up and down

Asia./FOB Korea./765-775 US dollars/ton./0 yuan/ton

Asia./CFR China./755-765 USD/ton./0 USD/ton

Europe and America./FOB Rotterdam./495-505 USD/ton./0 USD/ton

Europe./FD Northwest Europe./545-555 euros/ton./0 euros/ton

According to the monitoring of the business community, the price of cis-1,4-polybutadiene rubber in China decreased significantly, with the price of 11420 yuan/ton at the beginning of the week and 10890 yuan/ton at the weekend, a decrease of 4.63%.

The business community monitored that the price of domestic styrene butadiene rubber fluctuated slightly. The price at the beginning of the week was 10908 yuan/ton, while at the weekend it was 10859 yuan/ton, down 0.45%.

According to the monitoring of the business community, the price of nitrile rubber in China was narrowed down. The price was 15,125 yuan/ton at the beginning of the week and 15,149 yuan/ton at the weekend, up 0.16%.

As the price of butadiene drops to a low level, the downstream needs to follow up. On the other hand, some early maintenance devices will resume normal operation, and the market supply may be weak. Butadiene analysts from the business community expected that the short-term domestic butadiene market would be dominated by shocks.

1、 Price data

According to the data from the bulk list of business cooperatives, the mainstream average price of petroleum coke products of major domestic refineries in November was 3739.00 yuan/ton at the beginning of the month and 3564.00 yuan/ton at the end of the month, with a monthly drop of 175 yuan/ton, or 4.68%.

On November 30, the petroleum coke commodity index was 277.20, 4.86 points lower than yesterday, 32.18% lower than the cycle’s highest point of 408.70 (2022-05-11), and 314.41% higher than the lowest point of 66.89 on March 28, 2016. (Note: the cycle refers to the period from September 30, 2012 to now)

2、 Analysis of influencing factors

In November, the price of petroleum coke for local refining fell after rising. In the first ten days of this year, downstream carbon enterprises were more active in purchasing. The inventory of petroleum coke for local refining enterprises was low, and the price of petroleum coke rose; In the last ten days, the national logistics and transportation were blocked, the petroleum coke market was fully supplied, the local refining enterprises had high inventories, and the downstream had a strong wait-and-see mood. The price of petroleum coke continued to decline.

In November, the trend of international crude oil prices was volatile and downward. The Federal Reserve suggested that the interest rate increase was far from over and was not close to the end of monetary tightening. At present, the interest rate increase of the Federal Reserve has limited impact on inflation, which is not enough to reduce inflation. The Federal Reserve may need to take more tightening measures to curb inflation in the future, which will affect the decline of crude oil prices. The Organization of Petroleum Exporting Countries and its allies (OPEC+) once again lowered the growth expectation of global crude oil demand in 2022. With the risk of global economic recession intensifying, the future slowdown of demand growth is a certainty, and fuel demand will also face pressure. The most important thing is that the overall economy is weak. The severe epidemic situation in Asia continues to drag down demand expectations. The prospect of energy demand is still not optimistic, and economic weakness depresses oil prices.

The calcined coke market was basically stable in November; The market price of metal silicon fell. As of November 30, the price was 20250.00 yuan/ton; The downstream electrolytic aluminum market rose in shock. As of November 30, the price was 18983.33 yuan/ton; At present, downstream carbon enterprises purchase on demand and mainly wait and see.

3、 Future market forecast

The oil coke analyst of the business agency predicted that: the international crude oil shocks and declines in November, and the cost support of oil coke is limited; At present, the logistics transportation across the country is blocked, and the petroleum coke market is fully supplied. The local refining enterprises have high inventories. At the end of the month, the downstream is mainly wait-and-see, and the purchasing enthusiasm is average. It is expected that the price of locally refined petroleum coke will continue to decline in the near future.

According to the monitoring data of the business community, as of November 29, the average price of propylene oxide enterprises was 9362.50 yuan/ton, down 2.13% from November 1.

In November, the propylene oxide market fluctuated, with the overall trend rising first and then falling. In the middle and early ten days, the raw propylene declined after rising, the cost pressure remained, some devices fluctuated, the supply shrank for a short time, the factory shipped smoothly, and the price was mainly raised without pressure. The downstream just needed to follow up carefully, and the market market rose slightly in shock. In the last ten days, the price of propylene as raw material rose slightly, the cost support was improved, the supply side devices were partially recovered, the northern part was slightly accumulated but the pressure was controllable, the downstream purchasing atmosphere was weak, and the market atmosphere was general. Near the end of the month, the downstream low volume just needed to follow up, and the market was weak.

Upstream propylene, according to the data of the block list of business cooperatives, the domestic propylene (Shandong) market performed generally in November, rising first and then operating in a narrow range. On November 28, the reference price of propylene was 7436.60, up 5.68% compared with November 1 (7036.60).

The downstream propylene glycol, according to the monitoring data of the business community, on November 28, the reference price of propylene glycol was 7900.00, a decrease of 2.47% compared with November 1 (8100.00).

According to the propylene oxide analyst of the business community, the raw propylene is running strongly at present, with some support on the cost side, and the supply side devices are temporarily stable, but the demand side is general, and caution is the main thing to follow. It is expected that the propylene oxide market will be weak and stable in the short term, and more attention should be paid to the market news guidance.

1、 Price summary on November 25:

Shijiazhuang Refining&Chemical Co., Ltd. quoted 7000 yuan/ton, Qilu Petrochemical Co., Ltd. quoted 7200 yuan/ton,

Yangba quoted 7150 yuan/ton,

Guangzhou Petrochemical quoted 7450 yuan/ton, Maoming Petrochemical quoted 7400 yuan/ton,

Changling Refining&Chemical offered 7350 yuan/ton,

Xinhai Petrochemical quoted 7280 yuan/ton.

2、 Fluctuation trend:

3、 Analysis and comments:

In terms of crude oil, the market focus is on the issue of the price ceiling of Russian oil in western countries, and no agreement has been reached at present; The oil price continues to be under pressure due to overlapping demand concerns.

Today, Sinopec reduced toluene by 300 yuan/ton in East China, 250 yuan/ton in South China, and 200 yuan/ton in Xinhai Petrochemical.

Crude oil fell continuously, and the domestic toluene market was poorly discussed, resulting in a strong negative atmosphere in the market. Sinopec continuously lowered the price of toluene, and the spot market fell.

According to the bulk list data of business cooperatives, the domestic propylene (Shandong) market performed generally in November, rising first and then operating in a narrow range. At the beginning of November, the market was 7036 yuan/ton. On November 25, the average price was 7296 yuan/ton, with a monthly increase of 3.69%, 5.96% lower than the same period last year.

As of November 25, the mainstream prices of propylene in different regions in China are as follows:

Region/November 25

Shandong Province/7300-7350 yuan/ton

Northeast China./7000-7100 yuan/ton

East China./7150-7250 yuan/ton

At the beginning of November, Shandong market was affected by domestic public health events, which led to blocked enterprise shipments, poor on-site transportation, and low end prices falling below 7000 yuan/ton. In the second week of November, the market hit the bottom and rebounded. On the one hand, logistics recovered gradually, and propylene enterprises moved smoothly. On the other hand, low prices stimulated the enthusiasm of downstream procurement to improve. Proper replenishment and restart of downstream devices led to a rapid rise in the price of propylene in Shandong to 7300 yuan/ton. From the middle of the month to the end of the month, due to the price rise and the lack of downstream purchasing stamina, the propylene market began to fluctuate and stabilize, and the market supply and demand did not change much. As of November 25, the mainstream price of propylene in Shandong was 7300 yuan/up and down.

The industrial chain of propylene industry declined mainly, and the propylene market in November was not as expected due to the downstream demand. On the cost side: crude oil fell in shock, the prices of naphtha and methanol fell to varying degrees, and the prices of liquefied gas and propane were relatively strong, with a steady upward trend, but the main cost side supported weak. Demand side: In November, the downstream product market fell in a wide range, the price of acrylic phenol fell by more than 10%, the polypropylene market was weak and consolidated, the increase in demand for propylene was limited, and the downstream gas buying was insufficient, resulting in weak propylene growth.

Propylene analysts from the Chemical Branch of the Business Community believe that the demand may further weaken in December, and with the escalation of national public health and safety incidents, the propylene market is expected to decline in December.