Market overview
This week, the domestic neopentyl glycol market negotiations showed a downward trend, and the center of gravity gradually weakened. At the beginning of the week, the raw material isobutyraldehyde was greatly reduced, which aggravated the sentiment of the downstream to wait and see. However, as early as the beginning of the month, the downstream has already replenishment, and there is no intention to continue purchasing. At first, the neopentyl glycol plant was not conducive to buying because of the low downstream buying interest, and the factory itself received orders. However, some factories are not optimistic about taking orders. Considering the decline of raw materials and the pressure of downstream factories, the offer is gradually loosening, low prices are detected, and the market spread is widening. However, the downward trend gradually, coupled with the warming of the bearish sentiment, the buying is even weaker, and there is little talk about real orders. As of this Thursday, the average price of hydrogenated (imported) goods in East China was 8650 yuan/ton (acceptance delivery), a decrease of 0.80% from the previous month; the average price of hydrogenated (imported) goods in South China was 8660 yuan/ton (acceptance delivery) ), a decrease of 0.69% month-on-month; the average price of hydrogenated (imported) goods in North China is 8550 yuan/ton (acceptance delivery), which is down 0.93% month-on-month.
Raw material dynamics
Isobutyraldehyde: The price of isobutyraldehyde dropped sharply this week, with a downward focus. Due to high prices, downstream alcohol factories are under pressure, more inventory is digested, and few purchases are made. In addition, Hualu Hengsheng (600426) and Dongming Dongfang Equipment have restarted one after another, supply has increased, and market competition has increased. The inventory of mainstream factories has greatly increased, and they can only choose to make concessions. As prices fell close to the cost line, downstream factories also continued to purchase, factory inventory pressure was eased, and the center of gravity gradually stabilized. This week, Shandong negotiated an average price of 5,920 yuan/ton, down 9.21% month-on-month.
Formaldehyde: The domestic formaldehyde market price fluctuated downward this week. Among them, the average market price in Shandong increased by 6 yuan/ton from last week, and the average market price in Jiangsu remained the same as last week. This week, methanol prices fell weakly after rising. In the early part of the week, formaldehyde manufacturers from all over the country kept their offers steady, buyers were generally motivated to purchase, and there was no obvious release of market turnover. In the middle of the week, affected by the increase in raw material prices, some formaldehyde manufacturers in Shaanxi increased their offers, and the downstream just needed to purchase. Formaldehyde manufacturers in other regions are operating steadily, buyers are generally motivated to purchase, and there is a mild atmosphere for negotiation in the venue. During the weekend, falling methanol prices and poor downstream demand caused some formaldehyde manufacturers in Shaanxi and Shandong to lower their offer prices, and the market trading center of gravity has shifted downward. Formaldehyde manufacturers in other regions kept their offers steady, the downstream buying atmosphere was flat, and the atmosphere of the on-site negotiations was calm. As of Thursday’s close, the average price of formaldehyde in Shandong was 786 yuan/ton (including VAT), up 0.77% from last week; the average price of formaldehyde in Jiangsu was 900 yuan/ton (including tax), compared with last week Flat.
Market Outlook
Next week, the domestic neopentyl glycol market may continue to operate weakly. Although some factories have a slight decrease in the operating load, and they have executed more pre-orders, there is no shipment pressure, but the restart of the devices of Shandong Lihuayi and Xinke Aode still gives the market. There are worries, and some factories are not optimistic about taking orders in the early stage. The current price is still under pressure on the downstream, and the sentiment is stronger, and buying interest is even weaker in the downtrend. In addition, the pre-scheduled imports have also arrived one after another, which has brought pressure on domestic neopentyl glycol plants. However, in the short term, orders are still being executed at the New E factory, which is not strong, and the market center of gravity slowly declines.
