Price Trend

According to the price monitoring of business associations, the comprehensive price of potassium chloride has been stable this week. This week, the average price of potassium chloride mainstream comprehensive quotation is 2265.00 yuan/ton, which is 0.67% higher than the same period last year. Overall, the market for potassium chloride was stable this week, with the commodity index of potassium chloride at 71.90 on August 30.

II. Market Analysis

This week, the quotation of the main potassium chloride manufacturers is temporarily stable: Qinghai Salt Lake potassium chloride weekend ex-factory quotation is 2250 yuan/ton, compared with the beginning of the week, the quotation is temporarily stable; Anhui Badou potassium chloride weekend distribution quotation is 2280 yuan/ton, the quotation is temporarily stable. This week, the actual turnover of potassium chloride market is not good. On the whole, the main contradiction in the market is that supply exceeds demand, the trading atmosphere is cold, downstream purchasing is just in demand, the overall inventory is low, the purchasing market momentum is low, and the domestic market of potassium chloride is stable.

3. Future Market Forecast

Potassium chloride Market in early September overall trend or low consolidation. After the adjustment in August, the capital reflux of each factory is in good condition, the equipment has been repaired and the production capacity has increased. However, the potassium chloride market is currently facing the pressure of three mountains, namely, the large stock of Hong Kong, weak demand and downward international prices. Therefore, the main contradiction in the current market is that supply exceeds demand. Potassium chloride analysts believe that short-term potassium chloride Market in the supply and demand and raw materials and other aspects of the impact of the potassium chloride market or low consolidation.

Price Trend

According to the monitoring data of business associations, at the beginning of this week, the market quotation of organosilicon DMC increased steadily, slightly and sporadically. As of August 29, the average quotation of several mainstream regions was around 21200 yuan/ton, up by about 200 yuan/ton compared with August 23, up by 0.95%.

II. Market Analysis

Product: This week, the price of silicone DMC continues to rise narrowly. Individual enterprises take turns to have maintenance plans. The overall plant start-up rate is not high, the overall inventory is still low, the market supply is slightly tight, the overall market price remains high, downstream enterprises are more cautious to wait and see, just need to purchase. The lowest ex-factory quotation of silicone DMC distributors in Shandong area is around 20800 yuan/ton. The supply is tight. At present, only existing orders are processed. At present, the overall quotation of the mainstream areas of the silicone DMC market is around 20800-21500 yuan/ton.

Plant start-up: Tangshan Sanyou silicone monomer annual capacity of 200,000 tons, phase II parking overhaul. Zhejiang Zhongtian silicone monomer production capacity of 120,000 tons, the device is currently in normal operation. Aiken Silicone (Jiangxi Base) has an annual capacity of 400,000 tons, with about 50% start-up of the unit; Xin’an Silicone Unit in Zhejiang Province has an annual capacity of 350,000 tons, and the unit is currently in normal operation. Inner Mongolia Hengye Chengdu silicone monomer annual capacity of 240,000 tons, equipment overhaul completed, normal operation. Shandong Luxi chemical silicone monomer annual production capacity of 80,000 tons, plant shutdown overhaul. Shandong Jinling plant has an annual capacity of 120,000 tons. At present, the plant is parked and repaired. Dongyue Organic Silicone Unit in Shandong Province has an annual capacity of 250,000 tons, and the plant is now on and off. Zhejiang Hesheng Luzhou plant parking overhaul, Xinjiang region added 200,000 tons of monomer device in the current test run, Zhejiang plant normal operation.

Industry chain: Silicone DMC downstream products, raw rubber and 107 prices continue to be high, 107 rubber quotation is still strong, the price increased sporadically, monomer factory 107 rubber plant start-up rate is general, low inventory. The price of raw rubber has increased slightly. The price of common raw rubber in mainstream areas is close to 23500 yuan/ton. Inventory is low. Some manufacturers take orders in limited quantities and have a slight willingness to bid.

3. Future Market Forecast

Business analysts believe that “Golden September” is coming. Due to the general environment and various factors, the silicone market may not be as prosperous as in previous years. In the short term, the rise and fall of silicone DMC is difficult to predict, or the probability of continued bullish is greater.

Price Trend

According to the price monitoring of business associations, the average ex-factory price of sulphur market in eastern China is 693.33 yuan/ton, a drop of 7.14%.

II. Market Analysis

Products: Domestic sulphur market prices have been sharply lowered, downstream demand performance is still weak, terminal purchasing enthusiasm is weak, lack of information support, refineries in various regions continue to downward price adjustment, solid sulphur in East China market has been reduced by 40 yuan/ton, mainstream price is around 680-700 yuan/ton, liquid sulphur in individual refineries has been reduced by 50 yuan/ton. The mainstream price is around 610-680 yuan/ton; the mainstream price of sulfur in Shandong market is down 80 yuan/ton; the mainstream price of solid sulfur is around 700 yuan/ton; the liquid sulfur is down 60 yuan/ton; the mainstream price of sulfur in North China is down 60 yuan/ton; the mainstream price of solid sulfur is down 50-600 yuan/ton; and the liquid sulfur is down 60 yuan/ton. The mainstream price of sulphur is 520-560 yuan/ton.

Industry chain: The downstream sulphuric acid market is weak, high land price coexists, the contradiction between supply and demand remains, the buyers and sellers are cautious to trade, the mindset of the business is not good, individual acid enterprises parking and maintenance, local prices are flexible to increase, the market is not supported by substantial good news for the time being, and the price is expected to be low or downward.

Industry: From the demand point of view, the downstream wait-and-see atmosphere is strong, it is difficult to change. Domestic port inventory is high, consumption is slow, market turnover is still cold, on-demand procurement is the main, buyers and sellers wait for information guidance. Domestic sulphur market continued to decline, downstream demand has not improved, the industry for the future look at the atmosphere is strong.

3. Future Market Forecast

Business sulfur analysts believe that the current sulfur market is lack of news support, no substantial positive factors, the future market bearish is obvious, the short-term sulfur market is expected to continue weak consolidation.

On August 27, the rare earth index was 373 points, up 1 point from yesterday, down 62.70% from the cyclical peak of 1000 points (2011-12-06), and up 37.64% from the lowest point of 271 on September 13, 2015. (Note: Period refers to 2011-12-01 to date).

The average price of Neodymium in rare earth metals is 395,500 yuan per ton, dysprosium metal is 2.3 million yuan per ton and praseodymium metal is 695,000 yuan per ton. The average price of praseodymium and neodymium oxide in rare earth oxides increased by 4 500 yuan/ton to 3.135 million yuan/ton, dysprosium oxide price was 1.915 million yuan/ton, praseodymium oxide price was 3.825 million yuan/ton, and neodymium oxide price was increased by 4 500 yuan/ton to 3.155 million yuan/ton. The price of praseodymium and neodymium alloys in rare earth alloys is 395,500 yuan per ton, and the average price of dysprosium and iron alloys is 191,000 yuan per ton.

Recently, the price of heavy rare earth in rare earth market has been volatile, but the price of light rare earth market has risen slightly. The domestic rare earth market has a general trading market. The price of dysprosium metals has maintained a high level. Recently, the inquiry list for Pr and Nd oxide has increased, and the price of light rare earth oxides has maintained a rising trend. The supply of rare earth is normal in China. The price fluctuation of rare earth market is related to the national environmental protection supervision. Rare earth production has its particularity, especially the radiation hazards of some products, which make the environmental protection supervision stricter. Under stringent environmental protection inspection, rare earth separation enterprises in many provinces have stopped production, resulting in a general market input of rare earth oxides, especially some mainstream rare earth oxides, with normal supply and stable price trend in the rare earth market. Recently, large enterprise groups in the field are reluctant to sell. The market of rare earth oxides is general, but for products.  Pricing major manufacturers are also cautious.

Recently, the State Environmental Protection Department has made no reduction in its stringent efforts, which has a greater impact on the rare earth industry. The rare earth industry has a low start-up and a cold market. At the recent press conference on macroeconomic operation held by the Development and Reform Commission, Meng Wei, spokesman of the National Development and Reform Commission (NDRC), answering reporters’questions on rare earth, said that on the basis of in-depth investigation and scientific demonstration, relevant policies and measures would be put forward to give full play to the special value of rare earth as a strategic resource. Due to the increasingly obvious regulatory effect, the supply of raw ore resources in the upstream of the rare earth industry has shrunk, and people in the domestic market are waiting for the good news of the policy and the national reserve.

Rare earth analysts from business associations expect that domestic environmental stringency will not diminish in the near future, coupled with domestic rectification of the order of the rare earth industry, Myanmar’s export restrictions and normal supply, but the demand for rare earth downstream has been supported in the near future, and some prices in the rare earth market are expected to rise.

On August 26, the PX commodity index was 56.00, unchanged from yesterday, down 45.31% from its peak of 102.40 points in the cycle (2013-02-28), and up 22.94% from its low of 45.55 points on February 15, 2016. (Note: Period refers to 2013-02-01 to date).

According to statistics, the domestic market price trend of p-xylene was temporarily stable on the 26th. Pengzhou Petrochemical Plant operated steadily in the field. Urumqi Petrochemical Plant started 50% of its operation. Fuhai Creative Aromatic Hydrocarbon Plant started one line. CNOOC Huizhou Refinery and Chemical Plant overhauled. Hengli Petrochemical PX Plant went into operation. Other units operated steadily temporarily because of the introduction of new units. Domestic market supply of p-xylene is normal, and market price trend of p-xylene is temporarily stable. The opening rate of PX plant in Asia is about 80%. On August 23, the closing price of p-xylene in Asia increased by 2 US dollars/ton. The closing price is 764-766 US dollars/ton FOB in Korea and 783-785 US dollars/ton CFR in China. More than 50% of the domestic units need to be imported. The fluctuation of foreign prices has a certain impact on the domestic market price of p-xylene. The price trend of domestic p-xylene is temporarily stable.

On August 23, WTI crude oil futures fell to $54.17 a barrel, or $1.18 a barrel, while Brent crude oil futures fell to $59.34 a barrel, or $0.58 a barrel. In a recent report issued by the Organization of Petroleum Exporting Countries (OPEC), the growth rate of global crude oil demand per day in 2019 is expected to be reduced from 1.5 million barrels to 1.1 million barrels. It is also expected that there will be a slight surplus in the oil market in 2020, and that the trend of crude oil prices will decline, which will have a negative impact on downstream petrochemical products and the market price of paraxylene. The trend of the latter is temporarily stable. Recently, the textile industry has slightly declined, PTA price has slightly declined on the 26th. The average price in East China is raised near 5100-5200 yuan/ton. As of the 23rd day, the domestic PTA start-up rate is about 94.5%, the polyester industry start-up rate is about 86.5%, and the PTA social stock is estimated to be about 1.4 million tons. Affected by the equipment shutdown and maintenance, the total price in August is about 1.4 million tons. The body maintains a small depot rhythm. PTA factory inventory accounts for about 30%, polyester factory raw material inventory accounts for about 28%, downstream polyester factory has space to continue to replenish. Towards the traditional sales season of “Gold, Nine, Silver and Ten” for textiles, downstream terminal enterprises may usher in the procurement cycle and demand side will improve. It is expected that the price of PX market will remain volatile in the short term.