Since the National Day holiday, the upstream main raw material for viscose staple fiber dissolution slurry market has remained strong and stable, while the auxiliary material market continues to rise in price. The cost side has performed well, and the on-site supply is tight. At the same time, downstream markets are concentrated in signing orders, and manufacturers are gradually raising prices by 100-200 yuan/ton. Market favorable factors dominate, and the price trend of viscose staple fiber market is upward.

According to the Commodity Market Analysis System of Shengyi Society, as of October 13th, the domestic ex factory price of 1.2D * 38mm adhesive short fiber was 13820 yuan/ton, an increase of 180 yuan/ton or 1.32% from the beginning of the month, and an increase of 7.13% from the beginning of the year.

Cost side support enhancement

The market price of the main raw material dissolution slurry in the upstream is firm and stable. As of now, the price of domestically produced dissolution slurry is around 7800 yuan/ton, the price of broad-leaved slurry in the external market is around 960 US dollars/ton, and the price of coniferous slurry is around 1040 US dollars/ton. The prices of auxiliary materials in the market have both shown an upward trend. As of now, the average price of 32% liquid caustic soda in the domestic market is 917.77 yuan/ton, an increase of 2.51% compared to the beginning of the month; The average market price of 98% sulfuric acid is 331 yuan/ton, with a price increase of 2.16% compared to the beginning of the month. Overall, the upstream main raw material dissolution slurry market has seen a narrow upward trend, while the auxiliary material sulfuric acid market and liquid alkali market have both shown an upward trend. The cost side support for the adhesive short fiber market has strengthened.

Inventory levels are declining

Most of the adhesive short fiber market devices are operating stably, with high market supply and a daily operating rate of around 85.8% in the industry. Due to the increase in downstream demand, the overall inventory level of the adhesive short fiber market continues to decline, and some models in the market are experiencing tight shipments. The supply side still has positive support.

Demand side support is still limited

The trading atmosphere in the downstream cotton yarn market is flat, with prices rising narrowly. As of October 13th, the average factory price of human cotton yarn (30S, ring spun, first-class) is 17700 yuan/ton. Although the demand in the terminal market is still weak, the downstream vortex spinning market equipment continues to increase, and yarn mills are holding onto the demand for essential orders, resulting in an increase in demand for adhesive short fibers. However, the new round of orders in the market is still expected to last for about a month, with limited support from the demand side.

Future forecast

The upstream raw material market prices may continue to show a strong trend, while the on-site supply is tight. Downstream yarn factories are following up as needed, and the market has entered a new round of order delivery period. Many adhesive short fiber manufacturers are queuing up to ship, and coupled with the lack of significant improvement in the end market, it may be difficult for the demand side to improve. Therefore, it is expected that the demand side of adhesive short fiber will perform averagely in the later stage. Business analysts predict that the domestic adhesive short fiber market will maintain stable prices in the short term, with limited price fluctuations, and prices are expected to be between 13700-13900 yuan/ton.

According to the Commodity Market Analysis System of Shengyi Society, as of October 12, 2024, the reference price of n-butanol in Shandong Province, China was 7033 yuan/ton. Compared with October 10 (reference price of n-butanol was 7166 yuan/ton), the price has decreased by 133 yuan/ton, a decrease of 1.86%.

From the commodity market analysis system of Shengyi Society, it can be seen that after the holiday, the overall n-butanol market in Shandong, China, has shown a trend of “first rising and then falling”. Downstream n-butanol has started phased stocking, and with the boost of demand, the n-butanol market has experienced a brief upward trend. The n-butanol market price in Shandong has risen to around 7100-7200 yuan/ton. After the demand gradually returned to calm, the effective support in the market was insufficient, and the focus of the n-butanol market quickly adjusted downwards, with a reduction of about 100-150 yuan/ton. On October 12th, the market price reference for n-butanol in Shandong region was around 7000-7100 yuan/ton.

On the supply side: After the holiday, the domestic n-butanol market remained stable in terms of supply, with less pressure on the overall supply side. The overall supply inventory in the market was low, and the supply side provided support for the n-butanol market.

Market analysis in the future

At present, the overall trading atmosphere in the n-butanol market is relatively light, with downstream on-demand procurement as the main focus. The transmission between supply and demand of n-butanol is weak. The n-butanol data analyst from Shengyi Society believes that in the short term, the domestic n-butanol market will mainly adjust and operate within a narrow range, and specific changes in supply and demand information need to be closely monitored.

On the first day after the holiday (October 8th), Sinopec East China Phenol’s listed price was lowered by 200 yuan per ton. On the 10th, Lihua Yiweiyuan Chemical Co., Ltd. implemented a factory settlement price of 8400 yuan/ton for phenol products. The domestic phenol market continues to decline, with an amplified drop and increased market shipment pressure. The negotiated price in the East China region is between 8200-8300 yuan/ton, and there are many downstream inquiries, but actual transactions are slow. According to monitoring data from Business Society, the national market was at 8832 yuan/ton before the holiday, and fell to 8450 yuan/ton on the 9th. After the holiday, the market fell 4.33% to nearly 400 yuan/ton, and the mainstream market in East China was negotiated to drop to around 8250 yuan/ton.

The phenol offers in various markets across the country on October 9th are as follows:

East China region: 8200-8250, down 200

Shandong region: 8400-8600, down 100%

Surrounding areas of Yanshan: 8400-8600, down 100%

South China region: 8450, down 200

From a cost perspective, crude oil and styrene prices fell sharply at the close of the 9th, and pure benzene spot prices fell sharply on the 9th. The negotiation reference was between 7750-7850 yuan/ton, with a daily decline of 200-250 yuan/ton. It is expected that there will be large-scale factory maintenance downstream in the short term, and demand may decline. The import volume of products is expected to only increase and not decrease, and the supply side is loose. Traders are under great pressure to hold goods, and the market atmosphere in Shandong is bearish. Downstream procurement mainly consists of small orders with few transactions.

The downstream bisphenol A spot market remained stable with small movements, and remained lukewarm after the holiday. Market offers continued to maintain stability, and negotiations in the East China region reached 9600 yuan/ton, unchanged from before the holiday. There is currently no significant news impact on the market.

Due to insufficient demand and the pressure of traders’ shipments, they continue to offer discounts, with a focus on the replenishment of ship cargo in late October. The market has increased upside down space, and today we are paying attention to the price adjustments made by factories. It is expected that the phenol market will continue to operate weakly in the short term

1、 Price trend

According to the Commodity Market Analysis System of Shengyi Society, the aniline market fluctuated and fell in September. On September 1st, the market price of aniline was 10125 yuan/ton, and on September 30th it was 10062 yuan/ton, a decrease of 0.62% during the month and a decrease of 26.68% compared to the same period last year.

2、 Analysis and Review

The aniline market continued to rise in September due to insufficient momentum, resulting in an overall decline. At the beginning of the month, the reduction in aniline supply from the East China factory, coupled with short shutdowns of factories in other regions, tightened supply and boosted market confidence. Upstream goods flow smoothly, downstream actively enters the market, low-priced goods flow well, and aniline prices rise. Subsequently, the price of aniline rose to a high level, and on the 11th, the raw material pure benzene was lowered by 300 yuan/ton. Due to cost constraints, aniline was lowered by 200 yuan/ton. Pure benzene has not stopped falling, while aniline continues to experience a slight decline. At the end of the month, major factories raised prices, with a collective increase of 100 yuan/ton, and trading remained relatively stable on the market.

Pure benzene: The pure benzene market experienced multiple downturns in September, influenced by a macro bearish sentiment. In early September, there was a broad decline, although there was a rebound in the latter half of the month, pure benzene production remained at a high level, with a significant supply-demand imbalance and a tendency to fall but difficult to rise. On September 1st, the average price of pure benzene was 8613 yuan/ton, and on September 28th, the average price of pure benzene was 82428 yuan/ton, a decrease of 4.31% during the period.

3、 Future expectations

The current purchasing power in the aniline market is average, approaching the National Day holiday, and downstream stocking is coming to an end. The support for raw material pure benzene is slightly weak, and the positive support is insufficient. It is expected that the aniline market will consolidate in the short term.

According to the Commodity Market Analysis System of Shengyi Society, the domestic natural rubber spot market has seen a significant upward trend since September. As of September 30th, the spot rubber market in China was around 17942 yuan/ton, an increase of 18.46% from 15146 yuan/ton at the beginning of the month.

The recent heavy rainfall in the main production areas of Southeast Asia has affected the rubber cutting process, resulting in slow supply improvement in domestic and foreign raw material production areas, and a significant increase in natural rubber raw material prices. As of September 30th, the price of Thai glue was 78.00 baht/kg, an increase of 16.07% from the price of 67.20 baht/kg at the end of August; The purchase price of state-owned and gold rubber water-based concentrated latex raw materials in Hainan production areas in China is 18600 yuan/ton, an increase of 32.86% from 14000 yuan/ton at the end of August.

The natural rubber inventory continues to maintain a trend of destocking, which provides certain support for the natural rubber market. As of September 30, 2024, the total inventory of Tianjiao bonded and general trade in Qingdao area was 411800 tons, a decrease of 48300 tons from 460100 tons in late August.

With the support of domestic policies to promote automobile consumption, the downstream tire industry has experienced stable but slight fluctuations in production, and downstream stocking demand before the holiday is facing the urgent support of the natural rubber market. As of September 27th, the operating load of semi steel tires in domestic tire enterprises is around 7.9%; The operating load of all steel tires in tire enterprises in Shandong region is about 5.6%.

Market forecast: Currently, domestic and international raw material supply prices are high; Under the policy of promoting consumption, all tire enterprises are operating steadily, which provides certain support for natural rubber; Overall, in the short term, supported by costs and demand, it is expected that the natural rubber market will continue to experience strong fluctuations after the holiday.