Ethylene glycol price moves down after the Dragon Boat Festival

According to data from Business News Agency, on June 28th, the average price of domestic oil to ethylene glycol was 3955 yuan/ton, a decrease of 1.74% compared to before the holiday. The prices in various regions are as follows:

The price range for spot goods executed by mainstream manufacturers in East China is between 3750 and 4075 yuan/ton; The spot price of ethylene glycol in the South China market is 3900 yuan/ton, while the price range for mainstream manufacturers in Central China is 3850 yuan/ton; The spot price for mainstream manufacturers in North China is 4150 yuan/ton.

On June 27th, the CIF price of ethylene glycol in China was 450 US dollars/ton; The CIF Southeast Asia price is 473 US dollars per ton.

At present, the price of coal based ethylene glycol is relatively low, with factory prices ranging from 3450 to 3500 yuan/ton.

According to the Commodity Market Analysis System of the Business Society, as of June 27th, the average price of epoxy propane enterprises was 9600.00 yuan/ton, a decrease of 0.39% compared to last Tuesday (June 20th).

Recently, the epoxy propane market has experienced a rise and then a decline, with a narrow range of fluctuations. The cost support before the holiday is average, and the supply side devices are mainly stable. Downstream equipment just needs to be prepared before the holiday, and the market is stable and strong. After the holiday, the price of raw material propylene increases, and cost support increases. Some inventory is under pressure, and downstream wait-and-see reduction follows. As the price of epoxy propane decreases, factory shipments have rebounded. On the 27th, the mainstream quotation in the Shandong epoxy propane market was around 9150-9300 yuan/ton.

Upstream propylene, according to the Commodity Market Analysis System of Business Society, on June 26th, the reference price for propylene was 6475.75, an increase of 0.23% compared to June 1st (6460.75).

The epoxy propane analyst at Business Society believes that the current cost support is still acceptable, and the supply side pressure is temporarily controllable. The demand side just needs to follow up, and there is a strong wait-and-see atmosphere. It is expected that the epoxy propane market may become stagnant in the short term, and more attention needs to be paid to market news guidance.

According to monitoring data from Business Society, as of June 26, 2023, the domestic market price of organic silicon DMC was set at 14140 yuan/ton, which was reduced by 180 yuan/ton compared to June 1 (organic silicon DMC reference 14300 yuan/ton), a decrease of 1.26%.

From the data monitoring chart of the Business Society, it can be seen that from June to present (6.1 to 6.26), the overall domestic silicone DMC market has experienced a slight decline. In early June, downstream demand for organic silicon DMC continued to be weak. Shandong large factories slightly lowered the price of organic silicon DMC, leading to a slight decline in the overall market. As of June 15th, the domestic organic silicon DMC market price was around 14000-14500 yuan/ton, with a decrease of 0.84% in the first ten days.

In late June, the overall organic silicon DMC market continued to decline slightly. Due to the continued weak demand and general support for raw materials, the trading atmosphere in the organic silicon DMC market remained mainly light. Some organic silicon DMC suppliers narrowly lowered the prices of organic silicon DMC by around 100-200 yuan/ton. Before and after the Dragon Boat Festival, the supply and demand news of the organic silicon DMC market was relatively calm, with downstream demand being cautious. The overall market consolidation and operation were sideways. As of June 26, the domestic organic silicon DMC market price was around 14000-14300 yuan/ton, with a decrease of 1.26% during the month.

Prediction of the Future Trend of Organic Silicon DMC Market

At present, towards the end of the month, the overall performance of the domestic organic silicon DMC market is relatively stable, with a general trading atmosphere on the market. New orders are traded with caution, and the market is mainly stable and consolidating. According to the organic silicon DMC data analyst of the Business Society, in the short term, the domestic organic silicon DMC market is mainly stable and fluctuating, and the specific trend still needs to pay more attention to changes in supply and demand news.

According to the commodity market analysis system of the business community, as of June 25, the average price quoted by Epichlorohydrin enterprises was 7800.00 yuan/ton, down 900 yuan/ton, or 10.34%, compared with 8700 yuan/ton at the beginning of the month.

It can be seen from the price trend chart of Epichlorohydrin of the business community that the market situation of Epichlorohydrin was weak in June, and the price fell to the lowest level in the year.

Epichlorohydrin fundamentals

Supply side: In June, some glycerol Epichlorohydrin units were shut down, and the market supply decreased, but the market supply and demand were unbalanced, which generally supported the Epichlorohydrin market.

Demand side: In June, the demand side dominated the market, and the main downstream epoxy resin was in weak operation, mainly consuming contract volume and inventory. The enthusiasm for market inquiry was not high, and small orders were just needed to follow up. The market transaction continued to be under pressure, and the carrier delivered goods at the margin. Under the drag of demand, the focus of Epichlorohydrin market negotiation continued to decline.

Cost side: raw propylene. According to the commodity market analysis system of the business community, the reference price of propylene was 6255.75 on June 23, down 3.17% from June 1 (6460.75). The cost of propylene method has little impact on the market of Epichlorohydrin. The raw material glycerol, with a price of 99.5% glycerol in the East China market on June 21st, is around 4300 yuan/ton, which puts significant cost pressure on the glycerol method.

Future Market Forecast

Analysts of Epichlorohydrin from the Business Agency believe that there are many advantages: at present, the price of raw propylene is strong, the cost support of propylene process is rising, and the cost pressure of glycerol process is still large. With the price of Epichlorohydrin falling to a low level, the market’s low mentality is weakened. Negative side: After the holiday, downstream procurement mentality remains cautious, market transactions are limited, and there is a strong wait-and-see atmosphere. To sum up, under the market long short game, it is expected that the epichlorohydrin market will be deadlocked in the short term, and more attention should be paid to the market news guidance.

1、 Price trend

According to the Commodity Market Analysis System of the Business Society, the average market price of ammonium sulfate in China was 696 yuan/ton on June 15th, and 696 yuan/ton on June 21st. The market price of ammonium sulfate remained stable this week.

2、 Market analysis

The domestic ammonium sulfate market remained stable this week. Low level finishing of coking grade ammonium sulfate, with stable prices and minor fluctuations. The domestic ammonium sulfate market is stable and the price remains stable. The export market is still sluggish, with fewer orders. The downstream composite fertilizer market is weakening, with limited demand for ammonium sulfate. As of June 21st, the mainstream factory quotation for coking grade ammonium sulfate in Shandong is around 630 yuan/ton. The mainstream factory quotation for domestic ammonium sulfate in Shandong is around 610-690 yuan/ton.

The weak consolidation and operation of the downstream compound fertilizer market was weak this week. The market for composite fertilizer raw materials is weakening, and cost support is weak. Downstream procurement is mainly based on demand, and the market has a strong wait-and-see sentiment. It is expected that the short-term composite fertilizer market will mainly be sorted and operated in a narrow range.

3、 Future Market Forecast

Analysts from the Business Society believe that the domestic ammonium sulfate market has been less volatile recently, with weak domestic and international demand. Downstream replenishment on demand, limited market trading. It is expected that the ammonium sulfate market will operate in a narrow range in the short term.