Daily Report on Alkylated Oils: Market Shows Some Price Drops (20151013)

Market overview of alkylated oil: The sharp drop in overnight crude oil has affected market sentiment. Today, the transaction price in the northern market was between 5,500 and 5,650 yuan per ton; there was a tendency among buyers to wait and see, resulting in weak market activity. The South Market remains stable at 5,500–5,600 yuan per ton; the market atmosphere is declining, and overall transaction volume is average. Recently, traders in South China have been actively restocking, and there are expectations of an increase in local supply resources in the future.

Factors affecting the market tomorrow: On the demand side, replenishment activities by downstream users are nearing completion, while the sharp drop in crude oil prices affects their willingness to make purchases. The overall market sentiment among downstream players is cautious; most remain on the sidelines, with demand driven primarily by essential needs. On the supply side, domestic alkylation units are currently operating relatively normally, ensuring sufficient supply capacity. Despite the current obstacles to shipments, some companies still have existing contracts in progress, so there is no significant pressure for now. Today, the price of butane on the main raw material ether market rose, with the prevailing trading price ranging from 4350 to 4450 yuan per ton. Based on the current cost estimates for the installation, it yields a slight profit.

Outlook for alkylated oils: The sharp drop in crude oil prices further affects market sentiment regarding oil products. Although there is currently no significant supply pressure related to alkylated oils, their sales performance was poor today. In the short term, there is a possibility that alkylated oils will continue to see price reductions, with the market remaining focused on crude oil trends.