Tight spot supply and price rise of aniline (November 16-22, 2020)

1、 Price trend


Sulfamic acid 99.80%

According to the business club’s big list data, aniline prices rose on Wednesday and weekend this week. On November 15, the price of aniline in Shandong was 6500-6700 yuan / ton, and that in East China was 6700-6800 yuan / ton; on November 22, the price of aniline in Shandong was 7200-7400 yuan / ton, and that in East China was 7400 yuan / ton, an average increase of 10.55% over last week.


2、 Analysis and comment


In terms of cost, the main factor influencing the trend of pure benzene is styrene. On Monday, the total inventory of styrene in East China fell sharply, which led to short covering, and the price of pure benzene rose with styrene. However, with the shutdown of some styrene downstream units, bulls actively took profits and the focus of negotiation fell. In addition, styrene futures fell one after another, and pure benzene fell with it. On Monday, Sinopec’s pure benzene price increased by 200 yuan / ton to 4200 yuan / ton. This Sunday (November 22), the listed price of pure benzene was 4150-4550 yuan / ton (the average price was 4216 yuan / ton), up 196 yuan / ton or 4.88% compared with last week.


Nitric acid rose widely this week. On Friday (November 20), the production price of nitric acid in East China was 1800 yuan / ton, up 183.33 yuan / ton, or 11.34%, compared with last week.


Downstream demand for goods, aniline enterprises inventory decline within the week, the market spot supply is tight, prices rose. At present, aniline price is mainly affected by the relationship between supply and demand. In the week, pure benzene rose first and then fell, while aniline rose step by step.


3、 Future expectations


In terms of cost, short-term styrene will continue to affect the pure benzene market. Styrene is expected to go to the warehouse at the wharf next Monday, which will support the spot price. However, with the arrival of the traditional off-season, the downstream demand will be weakened. It is difficult to remove inventory of pure benzene in the whole year, but the downstream profit level is good, which supports the price of pure benzene. Next week, pure benzene is expected to follow styrene shock finishing.


It is expected that the short-term impact on aniline will be small. Pay attention to the inventory and downstream demand of aniline enterprises. It is expected that aniline will consolidate at a high level next week.

Sulfamic acid