Thread Content
Since the start of the Spring Festival, the domestic chemical market has seen a recovery, with the overall market trend indicating a \"bullish\" pattern. Driven by rising raw material prices and higher prices in overseas markets since last weekend, coupled with limited spot sales in the domestic bisphenol A market, prices have continued to rise. Traders are somewhat reluctant to sell, downstream resin production remains at a moderate level, market demand is limited, and most parties prefer to wait and see; as a result, the market is experiencing a situation of continuous price drops with no increase in volume. Domestic manufacturers are generally not operating at full capacity; they mainly keep inventory for their own use, which limits the supply of goods available in the market. In the future, as imported goods arrive one after another and at relatively lower costs, the market will continue to face certain pressures. To date, there are not many offers from traders in the East China region, with prices at around 7,600 yuan per ton; negotiation-based prices are around 7,500 yuan per ton, representing an increase of 200–300 yuan per ton compared to the previous weekend. The operation levels of downstream resin factories are moderate, with overall activity at around 50%; most factories are adopting a cautious approach, and market transactions remain modest. Among domestic manufacturers, the operations of their plants are generally satisfactory. The 120,000 tons per year plant operated by Sinopec Mitsui in Shanghai is operating at around 70% capacity, while the two plants operated by Bayer in Shanghai, with a combined capacity of 210,000 tons per year, are not operating at full capacity. The products produced are mainly used for internal use or supplied to contracted clients, with limited sales to external markets. The 25,000-ton facility in Zhongxin, Guangzhou and Huizhou is operating at low capacity, while the 25,000-ton resin plant in Wuxi is operating at around 80% of its capacity; in both cases, the production is mainly for internal use, with no prices offered to external customers. At present, domestic products do not have a significant impact on the market for now. On the export side, since the Spring Festival, driven by the continuous rise in raw material prices, the export market for bisphenol A has been on the rise. Quotations for goods from nearby regions range from 850–900 dollars per ton CFR China, with negotiations generally taking place around 850 dollars per ton CFR China. Downstream users and importers are willing to pay around 820 dollars per ton CFR China for these goods. Upstream market: Concerns over demand, with international crude oil prices continuing to fall. It fell 4% on Wednesday, following the International Energy Agency’s (IEA) prediction that global energy demand will see its biggest decline since 1982 this year. U.S. **reports showed that crude oil inventories rose more than expected last week, which also fueled selling pressure. New York WTI fell $1.61, closing at $35.94 ； London Brent crude dropped 33 cents to $44.28. On Wednesday, Asian pure benzene experienced a slight decline of 4 dollars per ton after rising for 8 consecutive trading days; it closed at 440.5–441.5 dollars per ton FOB South Korea, while in Southeast Asia it closed at 418.50–419.50 dollars per ton. Domestic manufacturers have also raised prices slightly. Propylene prices continued to rise, closing at $715 per ton FOB South Korea on Wednesday, while in the domestic market in Shandong, negotiation prices were around 7,000 yuan per ton. Phenol prices have recovered from their lows, with prices in East China rising to 4,800–4,900 yuan per ton, an increase of 400 yuan per ton. Downstream market: Rising prices of both raw materials have led to a slight increase in the domestic epoxy resin market. Manufacturers of epoxy resins have raised their prices slightly. In the Huangshan area, about 60-70% of solid epoxy resin manufacturers are in operation, while the utilization rate for liquid epoxy resins is higher. Demand from downstream sectors is growing slowly, and businesses are not very enthusiastic about entering the market, resulting in low overall transaction volumes. Raw material prices continue to rise, downstream demand is gradually picking up, and the market situation for epoxy resins has improved slightly. In summary, caution is still required when pursuing gains in the domestic bisphenol A market. In the future, attention should be paid to shipments arriving at ports, the increase in production capacity of domestic manufacturers, and the demand from downstream markets; it is expected that the upside potential for the bisphenol A market will be limited.