According to the Commodity Market Analysis System of the Business Society, the domestic spandex market has temporarily stabilized this week (October 9-13). As of October 13, the price of 40D spandex was 34250 yuan/ton, which is unchanged from the beginning of the week and a year-on-year decrease of 5.19%. The industry’s starting point remains around 72%. The price trend of spandex in the market is strong, and the cost side has weakened. Downstream cautious wait-and-see sentiment is strong, maintaining just in demand procurement.

Current mainstream price statistics of spandex market (unit: yuan/ton)

20D/ 30D/ 40D

Zhejiang/ 38000./37000./35000

Henan/ 37000./35500./33000

Fujian/ 37000./34000./32500

Jiangsu/ 39500./37500./36500

The domestic pure MDI market has declined, and the overall negotiation atmosphere is not good. Traders often ship with them, and the mainstream negotiation on spot goods in the market is for 20200 to 20500 yuan/ton wire transfer in barrels for self pickup, a decrease of 1000 to 1500 yuan/ton compared to the end of September. The overall operating rate of the PTMEG industry is around 78%, with a molecular weight of 1800 quoted at 21000 yuan/ton. Some factories do not provide external quotations for the time being.

The downstream textile industry is in a holiday mode during the National Day holiday period, with poor order performance and average overall market shipments. Production enterprises generally have about 1-3 days off, and most trading companies are also on vacation. After the holiday, the resumption of work is average, and the current comprehensive operating rate of Jiangsu and Zhejiang weaving is around 65%. It is expected that the traditional peak season market will gradually come to an end in late October, and the operating load will steadily decrease.

Analysts from Business Society believe that the current price stalemate of spandex is the main factor, with some loosening in the cost side. As downstream and terminal winter orders are gradually delivered, there is a risk of further shrinkage on the demand side, and the supply pressure on spandex will become prominent. In the short term, the upstream and downstream lack support, and the price of spandex may be weak.

Zinc prices fluctuate and fall after the holiday

According to the Commodity Market Analysis System of the Business Society, as of October 12th, the zinc price was 21462 yuan/ton, a decrease of 2.04% compared to the zinc price of 21910 yuan/ton on October 1st. The panic in the real estate market has intensified, with poor demand expectations for zinc in the market. After the holiday, zinc prices have fluctuated and fallen.

Global zinc market oversupply

According to data released by the International Lead and Zinc Research Organization (ILZSG), the global refined zinc market may experience surplus in 2023 and 2024. ILZSG stated that there will be an excess of 248000 tons of zinc in 2023 and an excess of 367000 tons in 2024. The global demand for refined zinc will increase by 1.1% to 13.59 million tons in 2023, and by 2.5% to 13.93 million tons in 2024. The global refined zinc production is expected to increase by 3.7% to 13.84 million tons in 2023, and by 3.3% to 14.3 million tons in 2024. The supply and demand in the zinc market are slowly increasing, but the growth rate of supply is significantly faster than that of demand, exacerbating the oversupply in the zinc market.

Increased panic in the real estate market

On the evening of September 28th, Evergrande Group announced that Xu Jiayin, the chairman of the company’s board of directors, had been investigated through mandatory measures due to suspected illegal activities. Chinese real estate giant Country Garden announced that its debt repayment ability is limited and it will launch a debt restructuring plan. Many leading real estate developers in China are facing increasing financial pressure recently, with their astronomical debt levels highlighting bankruptcy concerns in this industry. The panic in the real estate market has intensified concerns about domestic demand, and the expectation of demand in the zinc market has decreased.

Future Market Forecast

Data analysts from Business Society believe that the global zinc market has an overall oversupply, while panic in the domestic real estate market has intensified. The demand for zinc in the market is expected to be poor, and the support for zinc prices is weakened. It is expected that zinc prices will fluctuate and fall in the future.

Product name: PVC

Latest price: 5890 yuan/ton

Analysis points: On October 11th, the spot market price of PVC continued to decline, and the atmosphere on the market was average. In terms of raw materials, the factory price of upstream calcium carbide is temporarily stable. In terms of futures, futures continued to decline today. At present, the two cities are still showing weakness, but the downward adjustment has narrowed. At present, the mentality of the PVC market is average, and the market transaction situation is light.

Prediction: In the short term, the PVC spot market will experience weak and stable consolidation and operation.

According to the Commodity Market Analysis System of Business Society, due to significant fluctuations in raw material costs, the overall market price of sodium metabisulfite in China hit a bottom and rebounded significantly in the first three quarters of 2023. On September 30, the average price of industrial grade sodium metabisulfite was 2550.00 yuan/ton, a significant increase of 43.75% compared to the low point of the year.

In the first quarter, the price of domestic soda ash increased by 4.23%, while the price of sulfur decreased by 16.01%. The overall bottom of raw material costs fluctuated, and the market price of sodium metabisulfite remained relatively low and consolidated. Supported by the continuous low start of production by production enterprises and a shortage of 30% of product inventory, the overall low and slightly strong market price of sodium metabisulfite in the first quarter increased by 2.84%,

In the second quarter, the cost of upstream raw materials significantly decreased, with soda ash prices falling by 28.99% and sulfur prices falling by 33.13%. The cost of raw materials significantly decreased, and under a low-pressure system, the domestic market price of sodium metabisulfite significantly decreased. Under the mentality of buying up or not buying down, downstream trading entities had a strong wait-and-see attitude, and the problem of strong market supply and weak demand was highlighted. The domestic market price of sodium metabisulfite continued to decline weakly, with an overall significant drop of 18.62% in the second quarter.

In July, the raw material cost fluctuated and stabilized, and the decline in the market price of sodium metabisulfite slowed down. In August and September, the raw material cost rebounded significantly, and supported by a significant increase in costs, the domestic market price of sodium metabisulfite rebounded significantly. Downstream stocking was relatively active, and the market entered a supply-demand situation. In the third quarter, the domestic market price of sodium metabisulfite rebounded significantly, with an overall increase of 36.44%.

The 100 day moving correlation coefficient r100 between soda ash and sodium metabisulfite is 0.916, which is greater than its long-term correlation coefficient of 0.847 since 2011-03-01. The domestic market price of sodium metabisulfite is mainly affected by fluctuations in domestic soda ash prices.

Supported by a significant increase in raw material prices in the third quarter, the domestic market price of sodium metabisulfite has significantly increased. In October, the upstream raw material prices of sodium metabisulfite overall rose and fell. As of October 9th, the price of soda ash fell by 2.91% during the month, while the price of sulfur fell by 5.91%. The cost of raw materials rose and fell, leading to a slight decline in the overall domestic market price of sodium metabisulfite.

Analysts from Business Society believe that due to the recent rise and fall in upstream raw material prices, downstream trading entities are more cautious in their purchasing intentions. Manufacturers have slightly lowered their factory prices to ensure shipment, and in the short term, under a low cost system, there will still be some room for the domestic market price of sodium metabisulfite to fall back. Overall, the current domestic soda ash price is still relatively high, and the relatively high raw material cost operation will provide some support for the future market price of sodium metabisulfite. Throughout the year, the supply and demand of the domestic sodium metabisulfite market is relatively stable, and the fourth quarter is the traditional off-season of demand. It is expected that the domestic market price of sodium metabisulfite will not reach a new high in the fourth quarter, and the overall operation will continue to follow the relatively high price of soda ash.

Acetic anhydride prices fluctuate and fall after the holiday

According to the Commodity Market Analysis System of the Business Society, as of October 8th, the price of acetic anhydride was 7352.50 yuan/ton, a decrease of 1.84% compared to the price of 7490 yuan/ton on October 1st. In late September, the price increase of acetic anhydride slowed down, and the price increase of acetic anhydride was sluggish. After the holiday, the price of acetic anhydride fell, the cost of acetic anhydride decreased, and the downward pressure on acetic anhydride increased. The price of acetic anhydride fluctuated and fell.

Acetic acid prices fluctuate and fall after the holiday

According to the market analysis system of acetic acid products in the Business Society, as of October 8th, the price of acetic acid was 4866.67 yuan/ton, a decrease of 1.35% compared to the price of 4933.33 yuan/ton on October 1st. In late September, acetic acid enterprises resumed operations, with an increase in acetic acid supply, while downstream procurement enthusiasm decreased. After the holiday, acetic acid prices fluctuated and fell, increasing pressure on acetic anhydride costs to decline.

Future prospects

Analysts from Business Society Acetic Anhydride Data believe that acetic acid manufacturers have resumed operations, increased acetic acid inventory, increased acetic acid supply, and a decrease in acetic acid prices and acetic anhydride costs after the holiday. In the future, downstream procurement enthusiasm is poor. As acetic acid companies resume operations, the price of acetic acid drops, the cost of acetic anhydride decreases, and the demand for cost reduction is weak. It is expected that the price of acetic anhydride will fluctuate and fall in the future.