The price increase will not be boundless. The price drop may be late, but it will not be absent!
Crude oil fell to a new low in April, and the sharply rising raw materials started a downward trend, falling by 1,000 yuan in a single day, and some raw materials fell by 5,000 yuan from the beginning of the month! The market has a strong bearish mentality, and many traders who are hoarding goods have begun to sell goods at significant price cuts!
Slumped 5,000! Traders hoarding goods slashed prices and sold goods! Polyester factory opens big promotion! #polyester #raw material #textile
Sanctions lifted! Crude oil plunged to its lowest level since April
On the 20th, Iranian President Rouhani stated that agreement had been reached on the main parts of the Iran nuclear deal. The West has agreed to lift major sanctions on Iran, such as oil, petrochemicals, shipping, insurance and the central bank.
According to Iranian officials, the state-owned National Iranian Oil Co. is preparing to restart oil fields and customer relations. If negotiations with the United States go well, Iran will expand crude oil production exit. The most optimistic forecasts suggest that it could take just three months for Iran’s crude oil production to return to pre-sanctions levels, reaching nearly 4 million barrels per day.
After Iran released a signal on the progress of the Iranian nuclear negotiations, international crude oil futures turned down during the session, and then oscillated downward. U.S. WTI June crude oil futures closed down 2.07%, hitting a new low since April 26; Brent July crude oil futures closed down 2.32%, hitting a new closing low since April 13!
In addition to the increase in Iranian crude oil supply, if OPEC’s production restriction plan fails, the supply of crude oil will recover very quickly . In addition, the Palestinian-Israeli conflict has intensified geopolitical tensions in the Middle East, and the Indian variant of the virus may delay the lifting of blockade measures in Europe and North America. There is still a risk of a correction in oil prices.
However, as the summer travel peak is approaching, a short-term rise in oil prices cannot be ruled out. A recent Goldman Sachs report mentioned that Brent oil prices are expected to reach US$80/barrel, and global oil demand is expected to increase significantly by June, from the current 94.5 million barrels/day to 99 million barrels/day in the third quarter of 2021. sky.
Traders hoarding goods slash prices and sell goods! The skyrocketing raw materials plummeted by 5,000!
With the continued correction of crude oil, the market for chemical raw materials continues to stall. According to market data monitoring, a large number of previously popular chemical products began to plummet in mid-May, especially raw materials that had previously surged to record highs! Butanediol fell by 17.71%, acetone fell by -16.06%, and epoxy resin fell by -12.93%.
It is understood that the reason for the decline in the price of some raw materials is related to the imbalance between supply and demand caused by the resistance of downstream terminals to high prices. In addition, from “straight up to the sky” to “suddenly falling”, the sharp turn in the raw material market cannot be separated from the supervision of relevant departments. All these indicate that the current regulatory authorities are firmly determined to curb the excessive rise of bulk commodities.
As the country speeds up the pace of regulation, traders hoarding goods have also begun to sell goods at significant price cuts, pushing spot prices further downward.
The person in charge of a steel trading company in Linping, Hangzhou said that steel prices have been soaring in the past. In addition to normal purchases from steel mills, dealers also engaged in a lot of speculation. Behavior. Recently, the steel market has noticed various signals from regulators, and speculators are like “frightened birds” and have cut prices for shipments.
Now, let’s take a look at the market outlook of several plummeting varieties.
▶Bisphenol A, epoxy resin: Prices fluctuated after the plunge, with a strong bearish mentality!
Upstream crude oil fell, bisphenol A fell, and due to the long-term high price of epoxy resin, downstream factories were cautious in trading. The price of epoxy resin is hovering at 30,000 yuan/ton, which is nearly 5,000 yuan/ton lower than at the beginning of the month, and has dropped by nearly 2,000 yuan/ton in a single week.
Recently, some factories in Huangshan area have stopped production for maintenance. It is expected that in the short term, epoxy resin will mainly maintain stable operation. , the state intervenes in price adjustment, and does not rule out the possibility of a decline in the market outlook.
▶Polymerized MDI: Market downturn, major manufacturers lower prices by 5,000 yuan!
Downstream purchasing is cautious and orders are reduced. Major manufacturers such as BASF and Wanhua announced the listing price of polymerized MDI in May, which was reduced by 4,000-5,000 yuan/ton from the previous month. Combined with market demand and national adjustments, it is expected that aggregate MDI will still mainly fall this month.
In fact, large fluctuations in commodity prices are detrimental to both the upstream and downstream of the industrial chain. When the prices of commodities used as raw materials rise, downstream processing companies often face difficulties such as reduced profits, declining consumer demand, and reduced orders. When commodity prices fall sharply, traders and distributors in the middle of the industrial chain are very likely to encounter problems such as order defaults, inventory backlogs, and profit losses.
The polyester factory has launched the sixth polyester filament promotion, and the market outlook is still confusing!
Under state control, the days of raw material speculation have basically come to an end. As bulk raw materials come under pressure,��, the downstream polyester end also showed a weak trend as a whole, with profit compression and inventory increase, resulting in increased maintenance of some polyester devices, and the load currently fell from 92% to 88%. In addition, the terminal weaving link has entered the off-season. However, at present, terminal weaving orders can be maintained for the time being mainly because the price of polyester filament has not reached the price level of the same period last year. Therefore, downstream users are still relatively optimistic about the market demand, so the stocking data has increased accordingly compared with last year. Terminal market orders in May are still supported, but domestic and foreign orders will shrink in June, orders will be missing, and construction starts will further decline.
The current sluggish market situation is obvious to all. Otherwise, polyester factories would not need to use “ancestral tricks” to stimulate downstream purchases. Every promotion or More or less can bring about inventory reduction and relieve cash flow pressure. This is indeed possible in the short term, but what about the long term? It may be a bit difficult to try to reverse the sluggish market situation by relying only on each promotion. On the 21st, some polyester factories launched their sixth polyester filament sales in recent months, but the market outlook remains confusing!
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