According to the Commodity Market Analysis System of Shengyi Society, the domestic lithium carbonate market continued to operate weakly in August. From August 1st to 27th, the average market price of industrial grade lithium carbonate in China fell from 89600 yuan/ton to 80400 yuan/ton, with a price drop of 10.2% during the period and a year-on-year price drop of 62.7%; The average market price of battery grade lithium carbonate has dropped from 92200 yuan/ton to 82800 yuan/ton, with a price drop of 10.2% during the cycle and a year-on-year price drop of 64%.

Supply side: Due to the continuous decline of lithium carbonate in the past six months, lithium salt factories are facing cost pressure. Some companies have lowered their production expectations for August, but the extent of the reduction is limited and has not boosted the spot market. In terms of imports, multiple salt lake projects in Argentina will be put into operation in the second half of the year, and it is expected that the import volume of soy sauce in the second half of the year will be higher than that in the first half. The excess pressure is still quite evident.

Demand side: The market performance of positive electrode materials is average, and the willingness to stock up is not high. The customer supply and long-term cooperation basically meet the downstream production demand, and downstream enterprises adopt a cautious and wait-and-see attitude towards the future market.

Cost aspect:

The production of lithium mica has slightly decreased: the overall operating rate of lithium mica is low, and the demand for lithium mica from lithium salt factories is still weak, which has affected production enthusiasm. Although production has slightly decreased, mining companies still show a certain degree of price support sentiment.

Lithium spodumene imports remain high: There are many new production capacities for lithium spodumene in China, and overseas mining companies have strong price support sentiment. Some large lithium salt factories have sufficient inventory and are adopting a wait-and-see attitude towards new purchases.

Market forecast: Currently, lithium carbonate inventory is still at a high level, and there are no favorable factors on the demand side to support the rebound of lithium carbonate prices. The price of lithium carbonate will continue to operate weakly, depending on downstream market demand.

According to the Commodity Market Analysis System of Shengyi Society, the domestic hydrogen peroxide market steadily declined in August, with a drop of over 7%. At the beginning of the month, the average market price of hydrogen peroxide was 913 yuan/ton. On the 26th, the average market price of hydrogen peroxide was 843 yuan/ton, a decrease of 7.66%.

Low terminal demand, hydrogen peroxide market continues to decline in August

Starting from August, due to poor terminal demand, the purchase of hydrogen peroxide by printing and paper manufacturers has decreased, resulting in a weak upward trend in the hydrogen peroxide market and an overall downward trend. The mainstream domestic quotation is 800-960 yuan/ton. Among them, the average market price of hydrogen peroxide in Shandong region is about 900 yuan/ton, a decrease of 80 yuan/ton, the average market price of hydrogen peroxide in Hebei region is 800 yuan/ton, a decrease of 30 yuan/ton, and the average market price of hydrogen peroxide in Anhui region is about 960 yuan/ton, with stable prices.

In the middle of the month, the terminal paper industry market weakened, and manufacturers’ purchases of hydrogen peroxide decreased. Negative factors continued to accumulate, and the hydrogen peroxide market continued to decline, with an overall quotation of 800-950 yuan/ton. On August 21st, the average price of hydrogen peroxide in the Shandong region was around 800 yuan/ton, a decrease of 50 yuan/ton, while in the Hebei region, the average price of hydrogen peroxide remained stable at 800 yuan/ton; The average price of hydrogen peroxide in the Anhui region is around 950 yuan/ton, with a price drop of 10 yuan/ton; The average price of hydrogen peroxide in the Hangzhou area is 1100 yuan/ton, and the market is weak and stable.

At the end of the month, terminal demand remained sluggish, and the hydrogen peroxide market continued to decline, with the average market price dropping to 780-930 yuan/ton, indicating a weak market operation. The average price of hydrogen peroxide in Shandong region is around 800 yuan/ton, and the price remains stable. The average price of hydrogen peroxide in Hebei region is 780 yuan/ton, and the price has dropped by 20 yuan/ton; The average price of hydrogen peroxide in the Anhui region is around 930 yuan/ton, with a price drop of 20 yuan/ton; The average price of hydrogen peroxide in the Hangzhou area is 1100 yuan/ton, and the market remains stable.

Business Society’s hydrogen peroxide analyst believes that in September, the rigid demand for terminal hydrogen peroxide will support the market, and the upward trend in the future is expected.

This week, the price of isooctanol fluctuated and fell

According to the Commodity Market Analysis System of Shengyi Society, as of August 23, the price of isooctanol was 8016.67 yuan/ton, a fluctuating decrease of 3.41% compared to the price of 8300 yuan/ton on August 16 last weekend. The manufacturer of isooctanol has completed maintenance and resumed production, with sufficient supply of isooctanol; Poor demand for plasticizers has led to a decrease in downstream enterprises’ enthusiasm for purchasing octanol. Isooctanol manufacturers have lowered prices for shipments, increasing pressure on the price of isooctanol. As a result, the price of isooctanol has fallen.

The price of raw material propylene is weak and consolidating

According to the Business Society’s propylene commodity market analysis system, as of August 23, the price of propylene was 6860.75 yuan/ton, a fluctuating decrease of 0.07% compared to the price of 6865.75 yuan/ton on August 16 last weekend. Crude oil prices have fluctuated and fallen, while propylene cost support has weakened; Acrylic manufacturers are operating at low loads, with tight supply and continued fatigue in downstream demand. The price of propylene is weak and consolidating, and the cost support for isooctanol is weakened.

Downstream plasticizer prices fluctuate and fall

According to the Commodity Market Analysis System of Shengyi Society, as of August 23, the price of plasticizer DOP was 8791 yuan/ton, a decrease of 2.87% from the DOP price of 9051 yuan/ton on August 16 last weekend. The recovery of terminal demand is slow, the price of raw material octanol has fallen, costs have decreased, downstream customers’ enthusiasm for placing orders has decreased, wait-and-see sentiment has increased, plasticizer transactions have declined, and plasticizer DOP prices have fallen.

Future expectations

According to the data analyst of Business Society’s octanol product, in terms of cost, propylene prices are weakly consolidating, and the cost support for isooctanol is weakened; In terms of demand, the recovery of the plasticizer market is not as expected, and the demand for isooctanol is poor; In terms of supply, the maintenance of the isooctanol manufacturer has been completed, and the supply of isooctanol is sufficient. In the future, the supply of isooctanol is sufficient, and the demand recovery is not as expected. It is expected that the price of isooctanol will fluctuate and fall.

1、 Price trend

According to the monitoring of the commodity market analysis system of Shengyi Society, the focus of the domestic isopropanol market has shifted downwards this week. Last Thursday, the average price of isopropanol in China was 7876 yuan/ton, and this Thursday’s average price was 7736 yuan/ton. The price dropped by 1.78% during the week.

This week, the focus of the domestic isopropanol market is downward. Overall, the market trading this week was average, with a significant drop in raw material acetone, which affected the market sentiment of isopropanol and led to a decrease in manufacturer quotes. Overall, take a closer look and be cautious when making transactions. As of now, most of the isopropanol market prices in Shandong are around 7600-7650 yuan/ton; The majority of isopropanol prices in the Jiangsu and Zhejiang regions are around 7750 yuan/ton, while in the South China region, the price is around 7900 yuan/ton.

In terms of raw material acetone, the market price of acetone has dropped significantly this week. Last Thursday, the average price of acetone was 6800 yuan/ton, and this Thursday’s average price was 6462.5 yuan/ton, a decrease of 4.96% in price. At present, the overall downstream demand is average, and the trading atmosphere on the market is not high.

In terms of propylene, the propylene market has been fluctuating this week. Last Thursday, the average price of propylene in China was 6873.25 yuan/ton, and on Friday it was 6875.75 yuan/ton, with a price increase of 0.04%. At present, the overall inventory of the enterprise is controllable, and downstream purchases are made according to demand, so we should wait and see. It is expected that the market situation will be weak in the short term.

3、 Future forecast

The isopropanol analyst from the Chemical Branch of Shengyi Society believes that the market price of isopropanol has fallen this week, and the raw material acetone has fallen sharply, affecting the mentality of the isopropanol market. Downstream demand is generally moderate, with primary demand being essential. It is expected that the isopropanol market will operate weakly in the short term, and attention should be paid to changes in the news.

In mid August, the domestic ABS market showed weak consolidation, with most spot prices of various grades stabilizing slightly. According to the Commodity Market Analysis System of Shengyi Society, as of August 21st, the average price of ABS sample products was 12050 yuan/ton, an increase or decrease of+0.42% compared to the price level on August 1st.

Fundamental analysis

Supply level: In mid August, the load of the domestic ABS industry increased slightly by 1.3% compared to the previous period, with an overall operating rate of around 67%. Previously, due to the decline in raw material prices, the profitability of the polymerization plant has slightly improved, and some enterprises have carried out operations to increase their load. During the interval, the load of Yihua Yilijin increased, while the load of Tianjin Dagu decreased and then rebounded. The total production during the ten day period increased slightly compared to the previous period. At the same time, the overall shipment situation of manufacturers is average, and inventory continues to accumulate. Overall, the current supply side has moderate support for ABS spot prices, and companies such as Jilin Petrochemical have plans to shut down in the future. In the short term, supply pressure may show narrow fluctuations and a generally stable pattern.

Cost factor: In mid August, the overall trend of ABS upstream materials was weak, which weakened the support for ABS cost side. The domestic acrylonitrile market price has been continuously declining for over three months, and there is still no clear sign of bottoming out. Supply exceeding demand is the fundamental factor leading to the decline in acrylonitrile prices. Due to the considerable profits from the co production of MMA products by some major acrylonitrile factories, it supports the maintenance of acrylonitrile plant production. The market supply side maintains a favorable performance, coupled with the sluggish upstream propylene market, many industry players are bearish on the future.

In mid August, the butadiene market experienced narrow fluctuations, and some companies in Shandong suspended their export plans within ten days, leading to a slight rebound in market offers in East China. However, some shipping schedules from East China will arrive at the port in the future, which may increase the pressure on supply. The enthusiasm for downstream procurement is significantly weak, and synthetic rubber enterprises have been affected by the decline in profits and have always maintained the need to replenish inventory. At present, the supply and demand of the butadiene market are both weak, and it is expected to maintain a stable to weak trend in the short term.

The trend of styrene market consolidation in mid August. The price of pure benzene has fallen narrowly, with poor cost support. On the supply side, port inventory has increased, and downstream spot demand is in urgent need of goods, resulting in a general balance between supply and demand. However, there were many maintenance works on the styrene plant in the early stage, and there may be expectations of increased supply in the future resumption of work. It is expected that the styrene market will continue to operate steadily, and it is recommended to pay attention to the future supply situation.

In terms of demand: Since August, there has been no improvement in the main terminal demand for ABS. In the middle of the month, some home appliance manufacturers still maintain high temperature holidays, and the overall load position of downstream factories is relatively low. The recovery of terminal demand is slow, and the stocking operation is mainly based on weak demand. Traders follow the market and the flow of goods is relatively slow. Overall, the demand side is not providing strong support to the market.

Future forecast

The domestic ABS price trend in mid August is expected to remain stable and weaken. Upstream material sorting is the main focus, with average cost support for ABS. The load of ABS polymerization plants in the interval remains stable with a slight increase, and the weak and rigid demand situation on the demand side continues. The market has not yet deviated from the off-season trend. The social inventory is rising, and the supply-demand contradiction has not eased. Overall, it is expected that the ABS market will maintain a weak consolidation trend in the short term.