Daily Report on Alkylated Oil: Trading Activity Weakens (20151012)
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2015-10-12 14:27:35 1. Summary of market prices for alkylated oils. Table showing the ex-factory prices of alkylated oils and their raw materials. Unit: yuan/ton. Unit name, transaction price, increase/decrease: In Shandong region, 5500–56500; in North China region, 5550–57000; in Central China region, 5500–55500; in South China region, 5500–56000; in the western region, 5300–54000; in East China region, 5500–56000. The mainstream price for butenes after etherification in Shandong is 4500–45000
Market overview of alkylated oil: Demand from downstream industries is declining, resulting in somewhat sluggish shipments of alkylated oil. In the north, the mainstream transaction price ranges from 5,500 to 5,700 yuan per ton; there are some transactions at lower prices, but few buyers are interested at higher prices. The mainstream transaction price in the MERCOSUR region remains at 5,500–5,600 yuan per ton; some suppliers have completed their restocking, and overall trading activity has also slowed down.
Factors affecting prices tomorrow: On the demand side, shipments of finished oil products to end-users have also slowed down, and enthusiasm for purchasing the raw material, alkylate oil, has decreased. Replenishment at the downstream end is nearing completion; terminal consumption is limited, with demand in the later period being driven mainly by essential needs.
On the supply side, Hua Chao Chemical and Yi Kun Chemical have both returned to normal operations; the operating rate of their alkylation units has increased, further boosting their supply capacity. At the same time, due to poor recent shipments, inventory levels for some units in the alkylation section have increased. Today, the price of C4 products on the main raw material ether market rose, with the average trading price hovering around 4,500 yuan per ton. Based on the current cost estimates for the facility, it yields a slight profit.
Prospects for alkylated oils: Demand has clearly weakened, and sales of alkylated oils are not progressing smoothly. In the short term, there is no pressure on the market at present, so it is advisable to wait and see; however, as pressure increases, a downward trend cannot be ruled out in the long term. Of course, it is also necessary to pay attention to the extent to which fluctuations in crude oil prices can boost the market.