（1） The key raw material of mask is in short supply. Sinopec has 10 melt blown fabric production lines

Sinopec announced on February 25 that in view of the severe situation of epidemic prevention and control in China and the shortage of core raw materials for masks, the Party group of Sinopec decided to take advantage of its own raw material production advantages to immediately organize the supply of goods and quickly build 10 meltblown cloth production lines. Meltblown cloth is the “heart” of mask. It is used as the filter layer in the middle of medical mask. It has good filtration, barrier, heat preservation and adsorption properties. Under the huge demand of mask production, the market of melt blown cloth is hard to find one cloth, and the price rises sharply.

（2） Prevention and control of sudden increase in material demand

April 10, PP polypropylene futures rose sharply, 05 contract trading closed. Polypropylene (PP) spot market on April 1-10 after a small shock, PP spot stable, since 6 rapid rise, this ten days or 11.45%, week or as high as 14.36%.

The sales branch of China Shenhua coal to liquid and Chemical Co., Ltd. and China coal chemical (Tianjin) Chemical Sales Co., Ltd. issued the statement on the 10th, both of which explained the use of the two brands of fiber materials produced and sold by their companies, and did not guarantee that the products were used in special fields, and did not take responsibility. They called on the customers to use the products correctly and make joint efforts to fight against the epidemic My own efforts and contributions.

（3） ABS of helmet material rose strongly under the influence of “one helmet one belt”

Affected by the “one helmet one belt”, the domestic ABS market was strong in May, with a strong rising momentum in the middle of the month. According to the data of business news agency, on May 18, it rose by 3.59% in a single day, and domestic businesses made two offers in one day. After that, the market continued to rise. On the 19th, all brands rose by 300-700 yuan. On the 20th, the average price was about 11950 yuan / ton, up 7.71% in three days. The Traffic Management Bureau of the Ministry of public security deployed to carry out the “one helmet one belt” security guard operation nationwide, and the relevant regulations were implemented in June or July one after another. To stimulate the helmet price to go up all the way, the electric vehicle helmet has become a hot product online and offline. As the main raw material of helmets, the demand of ABS is concentrated in a short time, which is good for the domestic ABS market. In May, the operating rate of domestic ABS petrochemical plants was almost full load operation, and the operating rate of the industry was nearly 98%. The existing inventory has basically dropped to the average low level, the atmosphere of speculation has been maintained in the market, the merchants mainly deliver goods at a high level, and the downstream factories are more cautious in preparing goods.

（4） Qilu Petrochemical successfully developed new products of special materials for non-woven fabrics

In May, Qilu Petrochemical successfully developed and produced 2445 tons of pph-y30 powder. The product is a special material for the production of mask non-woven fabrics, and a high value-added product specially developed for customers by the company. It has become a new growth point of efficiency and helps to tackle difficulties and create efficiency in a hundred days.

（5） McDonald’s China to phase out plastic straws

On June 30, McDonald’s China announced that it would further reduce plastic on food packaging and phase out plastic straws. The initiative will be implemented in nearly 1000 restaurants in Beijing, Shanghai, Guangzhou and Shenzhen. Consumers can drink cola and other non solid cold drinks directly through the new cup cover.

（6） Huazhong’s first single liquid bag packaging VAE successfully exported

On July 30, the container loaded with 20 tons of liquid bag VAE successfully completed the export customs clearance at Qinzhou port of Guangxi and was sent to Malaysia, marking the first successful export of SVW chemical VAE products packed in liquid bags. Compared with the previous plastic bucket packaging export, VAE using liquid bag packaging can save about $100 per ton of packaging cost. At the same time, the loading capacity of 20 foot container increases from 16 tons to 20 tons, and the loading rate increases by 25%. This logistics optimization measure has laid a solid foundation for the products to be sold in the international market.

（7） Dushanzi Petrochemical’s new take away lunch box product has been successfully put into trial production

On August 3, the hp60 analysis indexes of 449.7 tons of new polypropylene produced by Dushanzi Petrochemical Company were all qualified, meeting the technical quality requirements of the products. Hp60 is a kind of thin-walled injection plastic with high melt index, which is a special material for disposable lunch boxes. At present, the takeaway lunch box market is relatively good. The melting point of the material for making lunch boxes – high melting point refers to thin-walled injection molded polypropylene is 175 degrees Celsius, which can resist hot water boiling and disinfection. Even when it is not subject to external force, its products will not deform below 150 degrees Celsius, so it is favored by food packaging manufacturers. Dushanzi Petrochemical Company keeps a close eye on the market. In view of the high melting finger characteristics of hp60, the workshop has formulated the operation control scheme of extrusion production hp60 process in advance. On July 28, the new hp60 polypropylene product produced in the second polyolefin workshop was successfully put into trial production.

（8） PE: regional imbalance of supply and demand price returns to ten thousand Yuan era

From August 30 to September 4, the high-voltage market increased the ex factory price substantially due to the tight supply of imported goods due to more maintenance of domestic devices and the inability of imported goods to unload at the port. According to the data monitoring of business agency, LDPE on August 30 The average price of 2426h in East China was 9325.00 yuan / ton, and 10387.50 yuan / ton on September 4, up 11.39% in the week, ushering in the peak since 2020, returning to the era of 10000 yuan, leading the LLDPE and HDPE market upward.

（9） New varieties added to Sinopec’s biodegradable plastics production

On November 9, it was learned from the Information Office of Sinopec that Sinopec Yizheng Chemical fiber has successfully realized the industrial production of biodegradable plastic PBSA. The biodegradation rate of the product is more than 90% in 180 days under composting conditions, which will strongly promote the green development process of China’s engineering plastics field.

PBSA is the third kind of biodegradable plastics of Yizheng Chemical fiber this year. Like PBST and PBAT, which were industrialized in May, PBSA is a kind of degradable material which is very active in the research of biodegradable plastics and widely used in the market. It can be used in the production of disposable daily necessities, packaging materials and agricultural films. At the same time, PBSA can also be widely used in 3D printing wire, medical materials and other fields because of its low melting point, fast crystallization and high fluidity.

（10） Annual output of polypropylene plant of Hainan Refining & Chemical Co., Ltd. reached a record high

On the morning of December 31, a good news came from the inventory of polypropylene finished product warehouse. The annual output of polypropylene plant exceeded 240000 tons, creating the best performance since it was put into operation in 2005. Annual output, propylene unit consumption, comprehensive energy consumption, catalyst unit consumption and other economic indicators lead the domestic advanced level of similar devices.

LNG price trend in 2020

Looking back to 2020, the price trend of liquefied natural gas was low before and high after. In the third quarter, the price fell to the bottom. In the fourth quarter, the price rose strongly, recovering the previous decline. In December, the price reached the peak, fluctuated violently, and the amplitude of the year was too large. Let’s take you back to the numbers that deserve our attention in this year.

1. LNG up 43.37% for the year

In 2020, the domestic LNG market will be volatile and volatile. According to the data monitored by the business community, the average mainstream price of domestic LNG at the beginning of the year was 3743 yuan / ton, and the average mainstream price of domestic LNG at the end of the year (December 11) was 5366 yuan / ton, an increase of 1623 yuan over the quotation at the beginning of the year, or 43.37% during the year.

2. Liquefied natural gas fell 12.38% in the first quarter

In the first quarter of 2020, the domestic liquefied natural gas market will rise after falling. According to the data monitored by the business community, the mainstream average price of domestic LNG was 3743 yuan / ton on January 1, and 3280 yuan / ton on March 31. The quotation in the quarter fell 463 yuan, or 12.38%. The long and short market factors are intertwined, and the price of LNG fluctuates in the range of 3000-3200.

3. Liquefied natural gas fell 25.3% in the second quarter

In the second quarter of 2020, the domestic LNG market continued to decline. According to the data monitored by the business community, on April 1, the mainstream average price of domestic LNG was 3280 yuan / ton, and on June 30, the mainstream average price of domestic LNG was 2450 yuan / ton, and the quoted price fell 830 yuan, or 25.3%

4. LNG up 7.64% in Q3

In the third quarter of 2020, the domestic LNG market bottomed up and recovered. According to the data monitored by the business community, the mainstream average price of domestic LNG was 2443 yuan / ton on July 1, and 2630 yuan / ton on September 30, with an increase of 187 yuan or 7.64%.

5. LNG up 104.06% in Q4

In the fourth quarter of 2020, the price of domestic LNG market rose sharply. According to the data monitored by the business community, the mainstream average price of domestic LNG was 2630 yuan / ton on October 1, and 5367 yuan / ton on December 11, with an increase of 2737 yuan or 104.06%

6. Up 43.22% in a single month

In October 2020, the domestic LNG market price rose from 2630 yuan / ton on October 1 to 3766 yuan / ton on October 31, with an increase of 1136 yuan / ton, the biggest monthly increase in 2020, with an increase of 43.22%.

7. The biggest drop in a single month is 17.45%

In January 2020, the price of domestic LNG market dropped from 3743 yuan / ton on January 1 to 3090 yuan / ton on January 31, which was the biggest monthly drop. The quoted price dropped 653 yuan, or 17.45%.

8. In 2020, the highest price difference of domestic LNG will be 3016 yuan / ton

In 2020, the lowest price of domestic LNG price appeared in early September, with the lowest price of 2350 yuan and the commanding high of 5366 yuan in December. Compared with the lowest price, the highest price difference of LNG price in the year was 3016 yuan / ton.

1、 Price trend

Isopropanol prices fell this week, according to commodity data monitoring. The average price of isopropanol in China was 8066.67 yuan / ton last weekend and 7200 yuan / ton this weekend. The price was reduced by 10.74% during the week.

2、 Market analysis

Figure: price trend comparison of acetone and isopropanol from October to December

Isopropanol prices fell this week. Internationally, isopropanol in the United States closed higher on January 5, while isopropanol in Europe closed lower. So far, the negotiation range of isopropanol in Shandong Province is about 7000-7200 yuan / ton, and that of isopropanol in Jiangsu Province is about 7200-7400 yuan / ton. Zhejiang isopropanol negotiation range is around 7200 yuan / ton. The price of propylene isopropanol is about 7000 yuan / ton. Cost side down pressure isopropanol downstream market mentality, downstream orders cautious, buying enthusiasm is limited.

Acetone raw materials, acetone market in East China this week offer lower. According to the data monitoring of bulk commodities, the domestic acetone price was 6500 yuan / ton last weekend, and the average price was 5550 yuan / ton this weekend. The price was reduced by 14.62% within the week. This week, the focus of acetone market talks fell sharply.

In terms of raw material propylene, the market price of propylene in Shandong fell on January 8 today. According to the price chart of the business club, the propylene price declined all the way at the end of December, and began to rise on New Year’s day. On the 4th, the price was increased by about 100 yuan / ton. On the 5th and 6th, the price was mainly stable, with only a few enterprises going up. On the 8th, some prices fell. Now, the market transaction is between 7250 yuan / ton and 7500 yuan / ton, and the mainstream price is still around 7250 yuan / ton. At present, the manufacturer’s inventory is general, the shipment is stable, the crude oil price rises slightly, and the operation rate of the downstream market rises slightly. Therefore, it is expected that the propylene price will stop falling and rise due to the influence of the crude oil market in the near future.

3、 Future forecast

The isopropanol analyst of business society Chemical Branch said: the raw material acetone was significantly reduced, the propylene shipment was relatively stable, the lower cost side depressed the mentality of isopropanol downstream market, the isopropanol market was weak, the downstream was mainly wait-and-see, and the shipment of cargo holders was soft. In the short term, there is still room for price reduction in isopropanol market, but the range is limited. Pay attention to the changes of follow-up news.

Entering 2021, the LPG market will rise at the beginning. Shandong civil gas will go up sharply in the first week of January, and the current quotation is more than 4000 yuan / ton. According to the data monitoring of business society, the average price of LPG in Shandong market was 3490.00 yuan / ton on December 31 and 4083.33 yuan / ton on January 7, up 17.00% in the first week and 28.95% compared with November 1.

As of January 7, the mainstream prices of LPG in various regions of China are as follows:

Specification ﹣ mode of transportation ﹣ region ﹣ mainstream transaction price

Civil gas and automobile transportation in North China: 3950-4230 yuan / ton

Civil gas and automobile transportation in eastern China: 4500-4510 yuan / ton

Civil gas and automobile transportation in South China: 4300-4550 yuan / ton

Civil gas and automobile transportation in Shandong Province: RMB 4000-4300 / T

Civil gas and automobile transportation in Northeast China: 4150-4702 yuan / ton

After the introduction of the sharp rise in CP price in Saudi Aramco in January, the LPG civil market began to increase the ex factory price significantly during the new year’s day. After the holiday, the rising route of the market remains unchanged, and the ex factory price continues to rise. At present, many plants in Shandong’s civil gas market have broken through the 4000 mark, and the price has increased by 400-700 yuan / ton compared with that before the holiday. There are many positive factors in the market, and the rising cost of the first batch of products supports the upward price. Secondly, the international crude oil rose sharply on January 5, and the news was favorable to the market mentality. At present, the weather is cooling down obviously, the terminal demand has increased, and there is also a demand for replenishment after the festival. In addition, snow has appeared in some areas during the week, so there is a certain resistance in transportation. The manufacturer’s shipment is smooth, the market transaction atmosphere is positive, so the price rises sharply.

In terms of international crude oil, on January 5, the price of WTI crude oil futures market in the United States rose sharply, with the settlement price of the main contract at US $49.93/barrel, up US $2.31 or 4.85%. Brent crude oil futures market prices rose sharply, the settlement price of the main contract was 53.60 US dollars / barrel, or 2.51 US dollars or 4.91%. International oil prices soared on Tuesday, with WTI and Brent crude oil up nearly 5%, mainly due to Saudi Arabia’s unexpected announcement that it will voluntarily reduce production in February and March, and other OPEC + member countries maintaining stable production.

After the festival, the main players in the LPG futures market brought obvious support to the spot market, and the futures and spot rose hand in hand. On January 7, the opening price of LPG futures contract 2102 was 3945, the highest price was 4029, the lowest price was 3933, the closing price was 3953, the former settlement price was 3957, the settlement price was 3973, down 4, or 0.10%. The trading volume was 80727, the position was 35408, and the daily increase was – 426. (quotation unit: yuan / ton)

At present, the civil price of liquefied gas has risen to a relatively high level. Although the current rising trend has continued, the price has been pushed up too fast after the festival, the downstream’s acceptance capacity is limited, and it is already in conflict with the high price. The market transaction atmosphere has obviously weakened compared with the previous period. With the downstream delisting, the price may suspend the rising trend in the short term, and the horizontal consolidation is the main trend.

1、 Price trend of propylene oxide

(Figure: p-value curve of propylene oxide product)

According to the data of the business club, the average price of domestic propylene oxide enterprises was 10133.33 yuan / ton on January 1, 2020, and the average price of domestic propylene oxide enterprises was 18900 yuan / ton by December 31, 2020, with an increase of 86.51%. The lowest price was 7266.67 yuan / ton on April 7, and the highest price was 19300 yuan / ton on November 24, with the maximum amplitude of 165.60%.

According to the monthly rise and fall chart of propylene oxide from January to December in 2020, the overall price of propylene oxide showed a downward trend in the first quarter and October, and rose in other months. The biggest monthly rise was in September, with an overall rise of 37.56%, and the biggest monthly decline was in March, with an overall decline of 13.65%.

2、 Market analysis

Weak downward trend (January to March): in the first quarter, the price of raw propylene showed a downward trend as a whole, which weakened the support for the cost of propylene oxide. Under the influence of public health events, inter regional transportation restrictions and terminal enterprises resumed work slowly. In March, the market gradually recovered, but the downstream demand was weak, and propylene oxide fell by 23.03% in the first quarter as a whole.

The price of propylene oxide fell to the lowest level in the year (7266.67 yuan / ton) in early April. Then, driven by the sharp rise of propylene, the price rose sharply. The overall market fluctuated and rose in April. From May to June, the price trend of propylene oxide rose more or less. In July, with the large quantity of downstream polyether orders, the demand side steadily supported the price rise, and propylene oxide started to work in August In September, the market price of propylene oxide continued to rise, the factory had no accumulation, the downstream conduction was active, the volume price chase was steady, the main offer continued to push up, and the price of propylene oxide rose 143.10% from April to September.

Price downturn (October): in late October, Po supply increased in the short term, and the prices of mainstream manufacturers decreased, seeking to stabilize and go to the warehouse. However, the downstream risk aversion and wait-and-see sentiment were strong, the inventory accumulated slowly, the manufacturers gave up profits to ship, and the price downward channel opened.

Overall shock upward (November December): in November, prices rebounded after falling, demand supported the market, manufacturers had no pressure, prices continued to rise, hitting the year’s highest point (19300 yuan / ton). On the 25th, market news was long or short, mentality game, price depression in the middle and lower reaches remained unchanged, holding weak wait-and-see, and market negotiations declined. In December, most Po manufacturers in Shandong reduced their burden, the overall supply of the market was tight, the manufacturers had no pressure, and the inventory in the middle and lower reaches was low. They just needed to follow up and stabilize, supporting the continuous rise of prices.

Import and export: according to customs statistics, the cumulative import volume of propylene oxide in China from January to November 2020 is 428793.068 tons, and the cumulative export volume is 4106.151 tons.

3、 Future forecast:

To sum up, the price of propylene oxide will rise sharply in 2020, which is mainly supported by the relationship between supply and demand, as well as the impact of raw material prices in the first half of the year. Entering 2021, the current propylene oxide Market is relatively strong, manufacturers are still under no pressure, and the main middle and downstream procurement is stable. It is expected that the propylene oxide market will mainly operate at a high level in the short term, and more attention should be paid to market information guidance.