Recent price trends of tetrahydrofuran

According to the Commodity Analysis System of Business Society, the domestic tetrahydrofuran market price has temporarily stabilized this week. The average price of tetrahydrofuran in the mainstream domestic market this week is 13050.00 yuan/ton. Weekend prices fell by 11.22% year-on-year.

Upstream support is good, while downstream demand increases

From the supply side perspective, the prices of mainstream domestic tetrahydrofuran distributors are temporarily stable this week, with average inventory levels.

From the upstream raw material market of tetrahydrofuran, the market for 1,4-butanediol has stabilized at a high level this week, with a price of 11642.86 yuan/ton. Weekend prices increased by 9.45% year-on-year. The market situation of maleic anhydride has significantly increased this week, with prices rising from 7400 yuan/ton at the beginning of the week to 7799.80 yuan/ton at the weekend, an increase of 5.40%. Weekend prices fell by 1.27% year-on-year. Overall, the upstream raw material market prices have slightly increased, with good cost support. Affected by the supply and demand side, it has a positive impact on the price of tetrahydrofuran.

From the downstream market of tetrahydrofuran, the price of spandex in the market has slightly increased this week. The price of spandex has increased from 34125.00 yuan/ton at the beginning of the week to 34250.00 yuan/ton at the weekend, an increase of 0.37%. Weekend prices increased by 3.01% year-on-year. Downstream spandex market prices have slightly increased, and downstream customers are actively purchasing tetrahydrofuran.

Future prospects

In mid to late September, the domestic tetrahydrofuran market may experience slight fluctuations and gains. The upstream 1,4-butanediol and maleic anhydride markets have slightly increased, with good cost support. The downstream spandex market has slightly increased, and downstream demand is good. Business Society tetrahydrofuran analysts believe that in the short term, the domestic tetrahydrofuran market may fluctuate slightly and rise mainly due to various factors such as supply and demand and raw materials.

According to data monitored by Business Society, as of September 11th, the price of high-quality power type lithium iron phosphate was 75000 yuan/ton, which is mainly stable compared to the same period last week. Currently, the mainstream price is around 75000 yuan/ton, mainly for contract customers, and new orders are not accepted.

This week, the stable operation of lithium iron phosphate is the main focus. Last week, the price for the same period was 75000 yuan/ton. Currently, the mainstream price is around 75000 yuan/ton, and the overall market is weak and downward. Downstream replenishment is on demand, while upstream lithium carbonate is stable and weak. The cost support for lithium iron phosphate is weak. In the short term, lithium carbonate will maintain its previous trend, and manufacturers will only supply old customers with goods, while new customers will not take orders.

Chemical Commodity Index: On September 10th, the chemical index stood at 942 points, unchanged from yesterday, a decrease of 32.71% from the cycle’s highest point of 1400 points (2021-10-23), and an increase of 57.53% from the lowest point of 598 points on April 8th, 2020. (Note: The cycle refers to the period from December 1st, 2011 to the present)

Analysts from Business Society believe that the lithium iron phosphate market will operate steadily and weakly in the short term.

According to the Commodity Market Analysis System of Business Society, from September 1 to September 8, 2022, the ex factory price of hydrogenated benzene in North China increased from 7816.67 yuan/ton last week to 8400 yuan/ton this week, an increase of 7.46%.

In terms of crude oil: OPEC+, an oil producing country, is rumored to have extended production cuts. The market expects an additional 1 million barrels of production reduction from Saudi Arabia to continue until December, while Russia’s crude oil production reduction will continue until December. Supply tightening is expected to continue to ferment and boost the oil market; In addition, the weakening of the US dollar has led to a rebound in oil market valuations and the potential impact of storms in the US Gulf on energy supply, which is a positive factor supporting international oil prices. On September 7th, international crude oil futures closed lower. The settlement price of the main contract for WTI crude oil futures in the United States was $86.87 per barrel, a decrease of $0.67 or 0.8%. The settlement price of the main contract for Brent crude oil futures was $89.92 per barrel, a decrease of $0.68 or 0.8%. Long profit taking, coupled with market vigilance against weak demand expectations, has suppressed oil prices.

The factory price of Sinopec pure benzene has been raised three times in this cycle, with a cumulative increase of 600 yuan/ton during the week. Currently, it is priced at 8350 yuan/ton.

The K-bar chart of commodity prices uses the concept of a price trend K-line to reflect weekly or monthly price fluctuations in the form of a bar chart. Investors can buy and sell investments based on the changes in the K-bar chart. Red indicates an increase; Green indicates a decline; The height of the K-bar represents the range of fluctuations. The weekly K-bar chart of pure benzene shows that the pure benzene market has seen a positive trend in recent times. After ten consecutive weeks of decline, it has continued to rise for six consecutive weeks, slightly falling for three consecutive weeks, and rising by another 2.01% this week.

From the perspective of the industrial chain, the macro performance of this week was good, with domestic commodity prices rising more or falling less, and the market atmosphere was more active. Crude oil continued to rise during the week, with styrene strengthening on the market. The supply of pure benzene itself was slightly tight, and downstream markets were actively entering the market. Under the influence of multiple positive factors, the pure benzene market has rapidly risen this week, while the hydrogenation benzene market has been significantly affected. The factory price in the main production area has increased to 8400 yuan/ton, with a cumulative increase of 550 yuan/ton during the week.

This week, the domestic hydrogenation benzene market saw a significant increase, with an increase of 400-450 yuan/ton. On the supply side, driven by costs and profits, the overall operating rate has increased this week, with slightly loose supply and little overall change. The changes in demand have been limited this week, and the impact of supply and demand on the market during the week is relatively small, mainly following the trend of the industrial chain. In the future market, the expectations for gold, silver, and ten are relatively sufficient. As the National Day holiday approaches, there are generally stocking plans in the market and downstream, and there are obvious positive factors in the market. However, as market prices rise to high levels, further upward resistance increases. After the weekend crude oil correction, the hydrogenation benzene market slightly declines. It is expected that the high consolidation trend of the pure benzene industry chain in the future will be the main focus, with a focus on downstream stocking plans.

The price of plasticizer DBP fluctuated and fell this week

According to the Commodity Market Analysis System of the Business Society, as of September 7th, the DBP price was 10325 yuan/ton, a decrease of 0.96% from the DBP price of 10425 yuan/ton on August 31st; The DBP price decreased by 1.90% compared to 10525 yuan/ton on September 1st. DBP raw material isooctanol prices have fallen from a high point, n-butanol prices have fluctuated and increased, phthalic anhydride prices have fluctuated and increased, plasticizer DBP costs have increased, plasticizer demand is cold, high cost and low demand, plasticizer DBP profit space has decreased, plasticizer DBP enterprises’ willingness to start work has decreased, plasticizer DBP enterprises have started low, plasticizer DBP prices have fluctuated and decreased.

The high price of isooctanol has dropped this week

According to the Commodity Market Analysis System of the Business Society, the price of isooctanol on September 7th was 12940 yuan/ton, a decrease of 0.77% compared to the price of 13040 yuan/ton on August 31st. The domestic isooctanol plant has started operating and restarted, and the supply of isooctanol has rebounded, resulting in a high price drop for isooctanol. The reduction in production of DBP devices has weakened its sentiment towards purchasing high priced isooctanol, leading to a downward trend in the isooctanol market and weakened cost support for plasticizer DBP in the future.

The price of n-butanol fluctuated and rose this week

According to the Commodity Market Analysis System of Business Society, as of September 7th, the price of n-butanol was 9833.33 yuan/ton, an increase of 1.72% compared to August 31st, when the price of n-butanol was 9666.67 yuan/ton. The n-butanol market is generally consolidating and operating, with relatively calm supply and demand on the market. Downstream demand is flat, and downstream enterprises have average purchasing enthusiasm. The n-butanol on-site supply is increasing, and supply and demand support is loose. The price of n-butanol tends to stabilize after rising, and the cost support for plasticizer DBP still exists.

The market of raw material phthalic anhydride rebounds and rises

According to the market analysis system for phthalic anhydride products of the Business Society, as of September 7th, the quotation for neighboring phthalic anhydride was 8662.50 yuan/ton, an increase of 0.73% compared to the price of 8600 yuan/ton on August 31st. The operation of domestic phthalic anhydride on-site devices is stable, and the on-site spot supply is normal. Recently, the situation of phthalic anhydride sales has been average. The market trend of phthalic anhydride on the site has rebounded, and the price of naphthalene phthalic anhydride in China has rebounded and increased. The profit of phthalic anhydride is inverted, and the willingness to sell phthalic anhydride has increased. The future market of phthalic anhydride is mainly strong.

Future expectations

Analysts from Business Society’s plasticizer product data believe that in terms of cost, the high price of isooctanol has fallen, the price of n-butanol has fluctuated and increased, the market for phthalic anhydride has risen strongly, and the cost of plasticizer DBP products is supported; On the demand side, PVC demand growth is less than expected, downstream customers are cautious in buying, and demand for plasticizers is relatively cold. In terms of construction, under the dual pressure of market losses and high inventory levels, the DBP market has reduced production and guaranteed prices. In September, Shandong Lanfan, Kaifeng Jiuhong and other devices have all reduced production operations. In the future, there will be high cost and low demand pressure. Although plasticizer companies have reduced their load and started operations to alleviate inventory pressure, the market will continue to sell out in a “buy up kill down” sentiment. It is expected that DBP prices will consolidate at a high level in the future.

Product Name: Neopentyl Glycol

Latest price (September 6th): 10033.33 yuan/ton

On September 6th, the domestic market price of neopentyl glycol slightly increased, with a price increase of 233.33 yuan/ton compared to September 5th, an increase of 2.38%, and a year-on-year decrease of 2.27%. The market price of isobutyraldehyde, a raw material, has recently increased significantly, leading to increased cost support. The market situation of downstream polyester resin is average, and downstream customers have average enthusiasm for purchasing neopentyl glycol.

In the future, it is expected that the domestic market price of neopentyl glycol may fluctuate slightly. The average market price is around 10200 yuan/ton.