Last week, the raw material market generally showed a weak adjustment trend. Except for DCPD prices, which rose sharply and were extremely out of stock, other varieties began to adjust slowly. This week is the sales closing stage before the National Day holiday. The long-distance transportation of hazardous chemicals is about to stop. The stocking of downstream customers is nearing completion. However, the transaction volume of new price orders is very small. The UPR factory has delivered all the orders placed a week ago.
After two months of price increases, the market structure has been completely separated from the demand of the end market, showing obvious stagflation characteristics. At present, UPR downstream customers have sufficient inventory reserves, and with the weak correction in raw material prices, the wait-and-see mood of downstream customers has been aggravated. Therefore, it is not expected that new orders will be executed immediately after the National Day holiday. In other words, after the National Day, UPR factories may produce The start-up status has dropped significantly compared with before the holiday. At present, international oil prices remain high, and inventories have not increased significantly. It is expected that the correction of styrene prices will be limited; although some maleic anhydride factories intend to jointly raise prices on the pretext of production capacity maintenance of individual companies, with the increase of 210,000 tons in Henan Shengyuan With all production capacity put into operation, and the trial production of a new 60,000-ton plant in Qiyuan, Hebei Province, the supply and demand pattern of the entire maleic anhydride market is undergoing new changes, and the phenomenon of overcapacity is becoming more serious. If the UPR factory operation decreases, then the price increase means there is Risk of losing market.
All in all, we expect that the market situation after the National Day will be weakened in stages.
(From: Pivot Smart Service)
