Market sentiment improves, magnesium prices remain stable and tend to strengthen (4.8-4.12)

Market analysis for this week


This week, the magnesium ingot market was initially strong and then stable. Recently, the non-ferrous metal sector has shown strong performance, driving up magnesium prices. After the Qingming Festival, the magnesium ingot market rebounded and rose, with an increase of 300-500 yuan/ton. Magnesium ingot prices have also returned to above the 18000 yuan/ton mark. The main reason is an increase in market transactions, with slightly more active inquiries and purchases compared to before. Steel mills have a stronger willingness to raise prices, coupled with a slight rebound in raw material prices, supporting the rise in magnesium prices. However, with the rapid rise in prices, downstream acceptance was insufficient, and the supply and demand sides once again became deadlocked in the later part of the week, leading to a consolidation of magnesium prices. According to the Commodity Market Analysis System of Business Society, as of April 12th, the average price of magnesium ingots in the domestic market was 18466.67 yuan/ton, with a week on week increase of 0.91%.


In terms of supply and demand

The factory side has a strong sentiment of price support, considering that some manufacturers have stopped production for maintenance in the early stage, the market supply has decreased, and inventory pressure has decreased. This week, after the end of the holiday, some companies delivered orders to purchase magnesium ingots, and downstream aluminum processing prices continued to rise, which has a boosting effect on magnesium prices. But most downstream users have limited acceptance of high prices, and high priced transactions in the market are rare.


In terms of raw materials


The market quotation for ferrosilicon in Ningxia this week is between 6100-6350 yuan/ton. The demand for ferrosilicon at the retail end has improved, and confidence in the industry has increased this week. Some factories have slightly increased their prices, indicating that ferrosilicon has some resistance to decline in the short term. It is expected that ferrosilicon prices will fluctuate strongly next week.


This week, the national blue charcoal market operated steadily with a strong bias, and the overall inventory in the market dropped to a medium low level. Coupled with the rise in raw material prices, enterprise quotations were firm. As of April 12, the mainstream prices of small and medium-sized materials in the Shenmu market were 740-900 yuan/ton, and the coke surface was 580-650 yuan/ton; The mainstream price of small and medium-sized materials in the Fugu market is 720-900 yuan/ton, and the coke surface is 620-700 yuan/ton.


Future Market Forecast


Overall, the current magnesium ingot market has seen an increase in trading volume, a decrease in production release from magnesium factories, and an increase in raw material prices, which has strengthened support for magnesium ingots. Magnesium prices still have an upward trend. However, the sustainability of downstream demand is insufficient. As prices rise, actual transactions slow down, and the sustained rise in magnesium prices is weak. It is expected that magnesium prices will remain stable, moderate, and strong in the short term, with limited upward momentum.

Cost improvement&supply benefits: Adipic acid rebounds at the bottom

This week (4.8-12), domestic adipic acid bottomed out and rebounded. According to the Commodity Market Analysis System of Shengyishe, as of April 12th, the weekly increase in succinic acid was 1.97%. The market trading center is increasing by around 100-200 yuan/ton. At present, the market quotation range for adipic acid is between 9500-9700 yuan/ton. The main reason is the combination of favorable cost and reduced supply.


Cost side: Overall favorable raw material costs


Since April, crude oil has continued to fluctuate at high levels, bringing certain benefits to the domestic petrochemical market. The domestic price of pure benzene has increased significantly. According to the Commodity Market Analysis System of Business Society, pure benzene has increased by nearly 3% since April. The main refinery has significantly increased its quotation. Part of the downstream ethylbenzene and caprolactam units in the Shandong market have started construction, and the demand for pure benzene has significantly increased. Although the price of pure benzene has slightly fallen this week, the driving force on the cost side is still present; As of the weekend, the spot trading range in East China is between 8650-8850 yuan/ton. From a cost perspective, the rebound in the upstream raw material market has boosted adipic acid.


Supply side: Tightening of parking supply for enterprise facilities


From the perspective of market supply: At the beginning of the month, major domestic manufacturers of adipic acid generally raised their listing prices, with an increase of 300 yuan/ton. The manufacturer has a strong willingness to raise prices, mainly due to the low operating rate of the equipment at present. And with the continuous release of maintenance news in the later stage, the expected decrease in supply has led to a sustained strong operation of adipic acid. Specifically, in terms of equipment, Tangshan Zhonghao and Hualu units have entered the maintenance period this week, and Chongqing Huafeng also has maintenance plans in mid month. The decrease in supply has made manufacturers more effective in boosting the market. The improvement of supply side is an important reason for the recovery of adipic acid prices. But the demand side has not changed much, and the upward trend has been suppressed.


Demand side: Difficulty in forming a strong boost on the demand side


The downstream of adipic acid is relatively sluggish. Terminal procurement maintains essential needs. Taking PA66 as an example, the price remained unchanged this week. Currently, the price has reached a high level, and downstream consumers generally resist high prices. The demand in the end market is average, and more purchases are made on demand. The supply and demand of spot goods in the market remain stable. According to the Commodity Market Analysis System of Shengyishe, the price of PA66 this week was 0. During the weekend, the market price of PA66 in Zhejiang region is around 23000 yuan/ton.


Future prospects


Regarding the future market, analysts from Shengyishe Adipic Acid believe that the current cost side may continue to be favorable. On the one hand, crude oil continues to be strong, and on the other hand, pure benzene may still have upward space after adjustment. Factories show a clear willingness to support the market, and the supply side will still maintain a tight pattern, which will continue to support the maintenance of a strong pattern in Adipic Acid prices. Considering the constraints on the demand side, the increase in adipic acid will be limited.

The polytetrafluoroethylene market has been operating steadily this week (4.8-4.11)

1、 Price trend


This week, the PTFE market maintained stable operation. According to statistics from Business Society, as of April 11th, the market price of PTFE suspended particles remained around 36500-50000 yuan/ton.


2、 Influencing factors:


Raw material side: The market price of R22 raw material side remains stable, with high costs under pressure, and companies have a strong bullish sentiment. Downstream demand is weak, with rigid procurement being the main focus. At present, there is sufficient inventory, mainly focused on digesting inventory. Enterprises still have a wait-and-see mentality, and the market fluctuations are not significant. According to the Commodity Market Analysis System of Shengyishe, as of April 11th, the benchmark price of Shengyishe R22 was 24833.33 yuan/ton, an increase of 2.76% compared to the beginning of this month (24166.67 yuan/ton).


Downstream end: Downstream demand is weak, with rigid procurement as the main focus, and enterprises still have a wait-and-see mentality.


3、 Future Market Forecast


Business Society’s PTFE analyst believes that the high prices of raw materials support weak downstream demand, and the PTFE market has been operating steadily in the near future.

This week, the sponge titanium market remained stable (4.7-4.10)

According to the commodity market analysis system of Shengyishe, as of April 10th, the benchmark price of Shengyishe sponge titanium was 54750.00 yuan/ton, which is the same as the beginning of this month.


The market price of raw material titanium ore is stable, but it still operates at a high and firm level. According to the monitoring system of Shengyishe, as of April 10th, the benchmark price of Shengyishe titanium concentrate was 2316.67 yuan/ton, which is the same as the beginning of this month. The market demand is stable, and the market situation on the exchange is strong. The downstream titanium material market demand is stable, and sponge titanium shipments are normal.


According to analysts from Business Society Sponge Titanium, the sponge titanium market is expected to maintain stable operation in the near future. More attention should be paid to market news guidelines.

Insufficient cost support, weak demand, domestic isobutyraldehyde fluctuates and falls this week

The price of isobutyraldehyde fluctuated and fell this week


According to the Commodity Market Analysis System of Business Society, as of April 8th, the domestic isobutyraldehyde quotation was 7287.50 yuan/ton, a decrease of 3.69% compared to April 1st isobutyraldehyde price of 7566.67 yuan/ton. Cost reduction and weak demand have increased the pressure on the price of isobutyraldehyde, leading to a volatile decline in isobutyraldehyde prices this week.


The price of raw material propylene fluctuates and falls


According to the Commodity Market Analysis System of Shengyishe, as of April 8th, the price of propylene was 6820.60 yuan/ton, a fluctuating decrease of 0.41% compared to the price of 6848.60 yuan/ton on April 1st. This week, the propylene manufacturer’s equipment restarted, and the supply of propylene was sufficient. Downstream rigid demand purchases were made, and the transaction situation of propylene was average. The price of propylene slightly decreased this week, but the support for the rise of propylene in the future is insufficient.


Downstream demand weakening


According to the Commodity Market Analysis System of Business Society, as of April 8th, the price of new pentanediol was 9966.67 yuan/ton, a decrease of 2.92% compared to the price of 10266.67 yuan/ton on April 1st. This week, the price of neopentyl glycol has fallen, some factories have offered discounts for sales, and the operating load of neopentyl glycol manufacturers has decreased. Downstream demand for neopentyl glycol has weakened, resulting in poor transactions in the neopentyl glycol market and significant downward pressure on neopentyl glycol.


Market Overview and Forecast


Business Society’s isobutyraldehyde industry analyst believes that in terms of raw materials, the price of propylene has slightly decreased, and the cost support for isobutyraldehyde has decreased. However, as crude oil prices continue to rise, the price of propylene has rebounded, providing some upward support for the cost of isobutyraldehyde; In terms of demand, the market for new pentanediol is weak, and the price of new pentanediol continues to decline. Manufacturers are offering more discounts for sales, and their production has decreased. The demand for isobutyraldehyde is weak, and the downward pressure on isobutyraldehyde is increasing. Overall, isobutyraldehyde has some upward support, but weak demand continues, and there is significant downward pressure on isobutyraldehyde. It is expected that isobutyraldehyde prices will fluctuate and consolidate weakly in the future.