Domestic tetrahydrofuran prices rise this week
The domestic market price of tetrahydrofuran increased slightly this week. The average price of domestic tetrahydrofuran in the mainstream market increased by 1.57% this week, and the weekend price increased by 1.17% year-on-year.
Upstream support is average, while downstream demand weakens.
From the supply side, the quotations of mainstream domestic THF dealers increased slightly this week, and the inventory was average.
From the perspective of the upstream raw material market of tetrahydrofuran, the 1,4-butanediol market has been consolidating at a low level this week, with prices rising by 1.89% year-on-year at the weekend. Maleic anhydride market prices rose slightly this week, with weekend prices rising 1.70% year-on-year. Overall, the market prices of upstream raw materials increased slightly, and cost support was good. Affected by the supply and demand side, it had a positive impact on the price of tetrahydrofuran.
Judging from the downstream market conditions of THF, the spandex market price has been consolidating at a low level this week. Spandex prices fell 8.88% year-on-year over the weekend. The downstream spandex market price is consolidating at a low level, and downstream customers are less active in purchasing THF.
In mid-to-late December, the domestic tetrahydrofuran market may fluctuate slightly and rise. The upstream maleic anhydride market rose slightly, with good cost support. The downstream spandex market is consolidating at a low level, and downstream demand is weakening. In the short term, the domestic tetrahydrofuran market is affected by various aspects such as supply and demand and raw materials. The market may fluctuate slightly and rise mainly.
Isopropyl alcohol market is temporarily stable
On December 12, the market price of isopropyl alcohol was temporarily stable, and the trading atmosphere on the market was average. The upstream acetone market price is consolidating at a high level, and the support situation of isopropyl alcohol is acceptable. Downstream companies have seen an increase in inquiries and are relatively cautious in purchasing. Overall, market trading is acceptable, and manufacturers’ quotations are relatively firm.
It is expected that the isopropyl alcohol market will remain stable in the short term.
Toluene market prices dropped slightly
The price of toluene has dropped slightly recently (12.1-12.12). Toluene fell by 1.65% on December 12.
International crude oil prices fluctuated weakly, and toluene cost support was weak. As of December 12, the WTI01 contract closed at US$68.75/barrel, and the settlement was 68.61 yuan/barrel; the Brent 02 contract closed at US$73.27/barrel, and the settlement was US$76.03/barrel.
The domestic blending market fluctuated slightly, and toluene demand support was weak.
Since the fourth quarter, domestic blending market demand has entered the off-season, downstream inquiries have been light, and toluene blending demand continues to weaken. As of early December, the national refinery unit operating rate was around 6.9%.
Domestic supply of paraxylene is relatively normal, and the domestic PX operating rate remains at more than 80%. A 750,000-ton unit of Pengzhou Petrochemical has restarted, but some units are still undergoing maintenance, and the spot supply is normal.
International crude oil prices have declined this week, and PX external prices have fallen due to this. As of the 7th, the closing prices in Asia were 935-937 yuan/ton FOB South Korea and 960-962 US dollars/ton CFR China. Recently, the operating rate of PX devices in Asia has remained high. Overall, the operating rate of paraxylene devices in Asia is nearly 80%. PX supply in Asia is sufficient. In addition, the domestic market price of paraxylene is temporarily stable due to the impact of lower crude oil prices.
External price falls, pressure on toluene supply continues
On the one hand, the demand for blending in North America has continued to decline since the fourth quarter, the interest rate spread between Asia and the United States has shrunk, and the price of toluene in Asia has declined. As of December 12, the CFR China LC 90-day toluene price in December was at US$808-810/ton;
On the other hand, domestic toluene production increased slightly and port inventory pressure continued. As of early December, domestic toluene production increased slightly to around 7.4%; East China toluene inventory was at 42,000 tons, and South China toluene inventory was at 11,000 tons.
Forecast for the market outlook: At present, the international crude oil price is weak and volatile, and the cost support of toluene is weak; the support for the rigid demand of toluene downstream blending and other industries is weak, and the supply side will continue to increase in the short term. The toluene market is expected to be weak in the later period.
Poor terminal demand, hydrogen peroxide market falls
Since December, the hydrogen peroxide market has continued to decline weakly, with a drop of more than 6%.
After December, the demand for terminal printing and papermaking was poor, the caprolactam market fluctuated downwards, and orders for purchasing hydrogen peroxide dropped. The supply is loose, hydrogen peroxide manufacturers lack confidence in raising prices, and the domestic hydrogen peroxide market is weak.
Outlook: Terminal demand is weak, and it is expected that the hydrogen peroxide market will still decline weakly in the market outlook.
Post time: Dec-13-2023