Recent trends in sulfuric acid prices

According to the Commodity Market Analysis System of the Business Society, the domestic sulfuric acid market price has temporarily stabilized this week, with a sulfuric acid price of 258.00 yuan/ton. Over the weekend, the price decreased by 36.76% year-on-year.

Upstream market slightly rises, while downstream procurement enthusiasm weakens

From the supply side perspective, the prices of mainstream domestic sulfuric acid manufacturers have temporarily stabilized this week, with average inventory levels among manufacturers.

From the perspective of the upstream and downstream industry chains, the upstream sulfur market has slightly increased, with sulfur prices rising from 936.67 yuan/ton at the beginning of the week to 946.67 yuan/ton at the weekend, an increase of 1.07%. Over the weekend, prices have decreased by 24.27% year-on-year. The upstream market has slightly increased, with good cost support. The downstream hydrofluoric acid market slightly declined, with the market price dropping from 11500.00 yuan/ton at the beginning of the week to 11183.33 yuan/ton over the weekend, a decrease of 2.75%. The weekend price increased by 0.49% year-on-year. The downstream titanium dioxide market has stabilized at a high level, with a market price of 17300.00 yuan/ton. Over the weekend, the price increased by 8.58% year-on-year. The downstream market has slightly declined, and the enthusiasm for downstream procurement has weakened.

Small fluctuation and decline in the future market

In mid November, the domestic sulfuric acid market may fluctuate slightly and rise mainly. Although the downstream hydrofluoric acid market has slightly declined, downstream customers’ enthusiasm for purchasing sulfuric acid has weakened. However, the upstream sulfur market has slightly increased, with good cost support. Under the contradiction between supply and demand, the product trend is upward. Business Society sulfuric acid analysts believe that in the short term, the domestic sulfuric acid market is mainly affected by various factors such as supply and demand and raw materials, and the sulfuric acid market price may fluctuate slightly.

According to the monitoring of the Commodity Market Analysis System of the Business Society, the average price of nitric acid on October 30th this week was 2083 yuan/ton, and on November 3rd it was 2050 yuan/ton, a price drop of 1.60%.

On November 3rd, the center of gravity of the concentrated nitric acid quotation continued to shift downwards, resulting in slow factory shipments and normal operation of the acid plant equipment. The market urgently needed a boost, and there was no increase in downstream transactions.

During the period from 10.30 to 11.3, the upstream liquid ammonia price decreased by 0.84%, the downstream aniline price increased by 2.82%, the TDI price decreased by 3.39%, and the potassium nitrate price increased by 0.93%. At present, the main downstream aniline factories are experiencing weak acid recovery, and the demand for pesticides, pickling and other industries is not good. Nitric acid analysts from Business Society predict that the price of nitric acid may be mainly fluctuating and weak.

In October, the focus of the domestic MIBK market declined. According to the Commodity Analysis System of the Business Society, the market quoted 17633 yuan/ton on October 1st, and 16400 yuan/ton on October 31st. The cumulative decline in October was 7%,

In October, the MIBK market went down, and the mainstream negotiated prices in East China fell to 16200-16400 yuan/ton. The market had prices but no market, and the trading situation was not optimistic. There were few new orders in the market, and large factories also reduced their volume. Traders lacked confidence in the short-term market and offered lower prices.

The cost side is bearish. In October, the domestic acetone market fell more or less, and after the holiday, port inventory rose to 16000 tons, causing a rapid decline in the market. However, as factories digested the short-term replenishment benefits and port inventory decreased, Sinopec Mitsui Phenol Ketone Plant temporarily shut down, and the market rebounded. However, ultimately, demand was limited and the push for growth was weak. In the latter half of the year, the market fell again.

From a terminal perspective, the demand is mostly for small orders to follow up, while the cautious operation of large enterprises entering the market is mostly targeted contracts, and the industrial chain lacks positive support.

From the perspective of Business Society, the domestic production of MIBK in October was 6800 tons, an increase compared to the previous month, and the operating rate has improved. Recently, the supply side is still sufficient, but demand is gradually turning into the off-season. The operating rate of downstream anti-aging agents is declining, and there is less consumption of raw materials. MIBK traders have increased their intention to ship. Shengyi Society predicts that the short-term MIBK market will continue to decline, and the market is expected to continue to bottom out in November. Focus on the support from the raw material end.

According to the Commodity Market Analysis System of Business Society, the recent trend of natural rubber has been fluctuating and declining. The spot rubber market in China’s natural rubber market was around 12890 yuan/ton on October 31, and around 13150 yuan/ton on October 23, a decrease of 1.98%.

Influencing factors:

1. Rainfall in domestic and foreign production areas has eased, and port inventory continues to decline

On the supply side, it is still in the peak season of rubber cutting, and the production area is affected by more periodic rainfall. Rainfall in Thailand, Vietnam and other production areas has slightly eased, and the overall production of raw materials is hindered; The rainfall in Hainan production area has eased, and the glue production is gradually normal; The weather in the Yunnan production area is normal, and the production of raw materials is normal. Recently, the production of raw materials has gradually recovered, and the cost support for natural rubber is limited. Downstream wait-and-see sentiment is strong. The Qingdao Free Trade Zone continues to reduce inventory and inventory continues to decline, which has a certain boosting effect on the Tianjiao market.

2. Tire companies have seen a slight decline in operating rates

On the demand side, the overall operating rate of rubber tire enterprises has slightly increased; The operating rate of semi steel tire enterprises has slightly increased, and overall shipments are good. Currently, most enterprises still have a shortage of snow tires. As enterprises gradually schedule production, the shortage phenomenon will be alleviated; The operating rate of all steel tires has remained basically stable, prices have been stable, and production has been scheduled. Recently, inventory has increased, and currently the main focus is on destocking.

Future Market Forecast:

Regarding the future market, the recent rainfall in domestic and foreign raw material production areas has eased, and the output of raw materials continues to rise, and the purchase price may decline; At present, the export situation of tire enterprises is good, and there is a certain demand and positive support for the natural rubber market in the short term; In addition, with the recent decline in futures trading, the price of natural rubber is weak. It is expected that the natural rubber market will be dominated by fluctuations and consolidation in the near future.

According to the Commodity Market Analysis System of the Business Society, the price of cryolite in Henan Province has slightly decreased this week. On October 29th, the average market price in Henan Province was 7775 yuan/ton, a decrease of 100 yuan/ton compared to the average price of 7875 yuan/ton on October 21st, a decrease of 1.27%.

This week, the cryolite market has been consolidating and operating, with manufacturers’ quotations stabilizing slightly. The price of upstream products has decreased, the cost support for cryolite has weakened, and the enthusiasm for downstream procurement is average. There is resistance towards high priced cryolite, and manufacturers have low sales. The market trading atmosphere is light, and both costs and downstream are negatively affected. In order to promote shipment, cryolite manufacturers have lowered their quotations. As of October 29th, the factory quotation for cryolite in Shandong region is 7000-8600 yuan/ton; The ex factory quotation for cryolite in Henan region is between 7200 and 8800 yuan/ton, with a range price reduction of 200 yuan/ton.

The upstream fluorite market is weak and downward, with an average market price of 3762.50 yuan/ton on October 29, a decrease of 0.50% compared to the price of 3781.25 yuan/ton on October 21. The upstream raw ore mining is tight, fluorite supply is tight, the demand side refrigerant market is stabilizing, downstream support is limited, manufacturers’ sales have weakened, and fluorite market prices have slightly decreased.

Future Market Forecast: The equipment of cryolite enterprises is operating normally and maintaining active shipments. Upstream supply is tight, and cryolite prices are firm under cost support. Downstream demand continues to be sluggish, with insufficient positive support. In the game of supply and demand on the market, it is expected that the short-term cryolite market will remain stable and wait-and-see. Specific attention will be paid to changes in manufacturer inventory and downstream acceptance.