According to the Commodity Market Analysis System of the Business Society, as of September 20th, the average price quoted by domestic industrial grade 85% formic acid enterprises was 3525.00 yuan/ton, a decrease of 2.76% compared to last Friday (September 15th).

Recently, the domestic industrial grade 85% formic acid market has been operating weakly. Recently, the price of raw material sulfuric acid has been running smoothly, and the raw material methanol market has been fluctuating and organizing. The cost support is average, and the supply side supply is sufficient. The downstream inquiry and procurement atmosphere is weak, and the need to wait and follow up is mainly. Some enterprises are under inventory pressure, and the transaction center of the formic acid market is declining. On the 20th, the quotation range for industrial grade 85% formic acid enterprises was between 3200-3600 yuan/ton.

Business Society formic acid analysts believe that the current cost support is limited, and the supply side is sufficient. Downstream procurement is just in demand, and shippers are actively shipping. It is expected that the domestic industrial grade 85% formic acid market may operate weakly in the short term, and more attention still needs to be paid to downstream pre holiday stocking demand.

According to the Commodity Market Analysis System of the Business Society, the PP market continued to strengthen in mid September, with various wire drawing brands continuing to rise. As of September 19th, the mainstream quoted price of T30S (wire drawing) by domestic producers and traders is around 8092.86 yuan/ton, with a+4.71% increase or decrease compared to the average price level at the beginning of the month.

Cause analysis

Industry chain: In mid September, in terms of PP raw materials, there was a good demand for propylene, with downstream devices resuming work and a significant demand pull. Upstream supply was smooth, inventory fell to a low level, and market prices quickly rose before entering adjustment. International oil prices continue to rise, coupled with strong propane production, resulting in strong cost support for oil and PDH production. Overall, polypropylene has strong cost support.

The overall trend of raw materials in all directions is strong, and the cost side provides strong support for PP. In terms of industry load, the overall industry load has recently exceeded 77%, with a narrow downward adjustment compared to the previous period. The overall supply of goods is stable, and there is sufficient supply of goods on site. In terms of demand, it has leveled off compared to the early stage, with downstream plastic weaving operating at a horizontal level of over 40%. In terms of film materials and injection molding, the operating rate of enterprises has remained around 60%, and the overall position has remained in the early stage. The stocking situation of terminal enterprises is based on demand procurement, and there is a certain resistance to high priced sources after the PP price increases.

In terms of fiber materials, according to the Commodity Market Analysis System of Business Society, as of September 19th, the spot price of domestic fiber PP has increased. The mainstream quoted price of domestic producers and traders for Z30S (fiber) is around 8062.50 yuan/ton, with an increase or decrease of+5.22% compared to the average price at the beginning of the month, and a decrease of -3.25% compared to the same period last year. Recently, the downstream non-woven fabric enterprises, the main force of PP fiber materials, have seen a low load increase, with an overall operating rate of around 37%. The demand for fiber materials in the market has increased compared to the previous period, and the digestion speed of non-woven end products is still acceptable. The enterprise’s efforts to replenish fiber PP have increased the industry load. But the main driving force for the increase is also cost support, and it is expected that fiber materials may enter the finishing stage in the short term.

In terms of melt blown materials, the recent melt blown PP market has been relatively strong. As of September 19th, the average quotation of domestic melt blown material sample enterprises monitored by the Commodity Market Analysis System of Business Society is around 8200 yuan/ton. Compared with the average price level at the beginning of the month, the increase and decrease is+1.23%, and there is a decrease of 10.55% compared to the same period last year. At present, the domestic and international news of the health incident has basically subsided, and the consumption of medical meltblown fabric materials is weak. There is also no significant boost in domestic and foreign demand. The main support for the market is the cost side, and it is expected that the melt blown material market may maintain a stronger consolidation market.

Future Market Forecast

PP analysts from Business Society believe that the polypropylene market is rising in mid September. The overall trend of upstream raw materials is strong, and the cost side provides strong support for the market. Terminal enterprises continue to operate at the previous level, with a bias towards maintaining production and a certain resistance towards high priced goods. It is expected that in the short term, the downward transmission of cost side benefits in the PP market may gradually be hindered, and the upward trend may be weakened to some extent.

Since the overall rise of the epoxy resin market in August, supported by raw materials, major enterprises have increased their prices for many times under the pressure of cost. As of August 18, the liquid epoxy resin market in East China had been delivered at 14900-15400 yuan/ton of purified water, and the solid epoxy resin market in Mount Huangshan had been negotiated to be delivered at 14700-15200 yuan/ton.

The raw material bisphenol A continues to rise, supported by the dual raw material phenol/acetone, and the mainstream market price of bisphenol A in East China has been negotiated at 12000-12100 yuan/ton. In the near future, the international crude oil market supply may continue to be tight, and its downstream product, pure benzene phenol bisphenol A, may continue to rise. Overall, they are facing a shortage of circulating resources, and are facing replenishment in the early days of the National Day holiday. Bisphenol A will continue to be strong in the short term.

The epoxy chloropropane market has been sorted horizontally, and the reference price for epoxy chloropropane in the East China market is 8500 yuan/ton. The latest reference price for raw material propylene is 7360 yuan/ton, and liquid chlorine has significantly increased compared to last week. The latest reference price is 700 yuan/ton. Fengyi Oil is still in a shutdown state, and the Jiangsu Haixing unit restarted within the week, with an overall industry operating rate of over 60%.

From the perspective of the business community, short-term raw materials will continue to operate steadily. In addition, due to the impact of stocking up before the National Day holiday, the high cost transfer of downstream PC and epoxy resin lags behind, and short-term epoxy resin will continue to rise under the support of cost.

1、 Price trend

According to the Commodity Market Analysis System of Business Society, the domestic propylene (Shandong) market rose sharply this week. The average price of the Shandong market at the beginning of the week is 7175 yuan/ton, and the average price on the weekend is 7338 yuan/ton, with a weekly increase of 2.26% and a year-on-year decrease of 1.38%.

As of September 15th, the mainstream prices of propylene in different regions in China are as follows:

Region/ September 15th

Shandong region/ 7350-7400 yuan/ton

Northeast region/ 6950-7050 yuan/ton

East China region/ 6900-7000 yuan/ton

2、 Analysis and Review

According to the Commodity Market Analysis System of the Business Society, the propylene market in Shandong has surged sharply this week. This week’s demand is good, downstream devices are resuming work, and demand is clearly pulling. Upstream goods are flowing smoothly, inventory has dropped to a low level, and propylene prices are driving up in line with the trend. During the cycle, crude oil prices have strengthened from weak to strong, with stronger news support, boosting market confidence.

3、 Future Market Forecast

Propylene analysts from the Chemical Branch of the Business Society believe that there are plans to restart units in the future region, and supply is expected to increase. The demand side remains stable, and it is expected that there will be little room for propylene to continue rising next week, with a narrow consolidation operation.

According to monitoring data from Business Society, as of September 14, 2023, the reference price of n-butanol in the Shandong region of China was 9966 yuan/ton. Compared with September 10 (reference price of n-butanol was 9800 yuan/ton), the price increased by 166 yuan/ton, an increase of 1.70%.

From the data monitoring chart of the Business Society, it can be seen that this week (9.10-9.14), the overall market situation of n-butanol in the Shandong region of China showed a slight upward trend. This week, some regions in China have shut down and repaired n-butanol plants. The overall supply of n-butanol in the field is expected to decrease, and the overall pressure on the supply side is relatively low. With no pressure on supply, the downstream procurement enthusiasm of n-butanol has also increased, and the willingness to restock has increased. Therefore, with the joint support of both supply and demand, the center of gravity of the domestic n-butanol market in Shandong region has moved upward as a whole, with a price increase of about 100-200 yuan/ton during the week. As of September 14th, the domestic market price of n-butanol in Shandong region is around 9800-10000 yuan/ton.

Aftermarket analysis of n-butanol

At present, the trading atmosphere of n-butanol on the market is good, and the n-butanol industry has a positive attitude. The downstream demand transmission is good. The n-butanol data analyst of the Business Society predicts that in the short term, the domestic Shandong region’s n-butanol market will mostly operate steadily and improve. The specific trend still needs to pay more attention to specific news changes on the supply and demand side.

According to the Commodity Market Analysis System of the Business Society, the price of fluorine chemical products has mainly increased since September, with significant increases in the prices of raw materials such as fluorite and hydrofluoric acid. The specific fluctuations are as follows:

Fluorite, also known as “fluorite”, is a strategic mineral and one of the scarce resources in China. It is a source product of the fluorine chemical industry. Since September, the price of fluorite has continued to rise. The upstream mining of fluorite is tight, and outdated mines will continue to be phased out. In terms of adding new mines, mineral investigation work is still difficult. In addition, mining enterprises are facing increasingly strict safety and environmental requirements, and some mines are undergoing safety hazard inspections, The difficulty of starting a fluorite mine has increased, and the shortage of raw materials has restricted the operation of fluorite enterprises, making it difficult for fluorite flotation enterprises to improve their operations. The shortage of spot supply of fluorite has affected the continuous rise of fluorite market prices.

Hydrofluoric acid: Recently, the price trend of domestic hydrofluoric acid has increased. As of 2013, the domestic hydrofluoric acid market price was 10316.67 yuan/ton, with a price increase of 2.82% in September. Some units are still in shutdown recently, and the spot supply of hydrofluoric acid has not changed much. The order situation of manufacturers for hydrofluoric acid has slightly increased. In addition, the market price of sulfuric acid has risen significantly in the early stage, and the price of sulfuric acid is still at a high level, The hydrofluoric acid market is driven higher by the rising prices of raw materials such as fluorite and sulfuric acid.

Refrigerant: The downstream refrigerant industry has made a good start in September, with strong support for raw materials. In addition to quota expectations, refrigerant manufacturers have increased their reluctance to sell. The operating rate of the refrigerant industry has not changed much, and the load of refrigerant R22 manufacturers is not high. Downstream procurement just needs to follow up, and some enterprises’ quotas are digested in advance. The monthly average quantity of remaining quotas is relatively small, and the price trend of R22 has increased. The domestic R134a manufacturers are operating at low loads, and the price of R134a is rising. Some companies have a strong reluctance to sell, and there is currently no mentality to sell low-priced orders. Some businesses have a rising price trend, and the current cost is firm. Enterprises’ reluctance to sell has escalated. The current market quotation for refrigerant R134a is mostly in the range of 25000-26000 yuan/ton. Supply and cost factors have driven refrigerant companies to have a clear intention to sell, and the refrigerant market trend has increased

Aluminum fluoride: In September, the price trend of aluminum fluoride was temporarily stable, maintaining a price of 9425 yuan/ton. The contradiction between supply and demand for aluminum fluoride was acute, with severe overcapacity. In addition, downstream demand was poor, resulting in a sluggish market price for aluminum fluoride. Recently, about 50% of aluminum fluoride enterprises have started construction, with downstream procurement mainly focused on rigid demand and two-way low sentiment. The demand for aluminum fluoride is still weak, and the price trend of aluminum fluoride is mainly stable.

Cryolite: The domestic market trend of cryolite is temporarily stable, and the raw materials are subject to environmental and safety requirements. There is a shortage of spot goods. Although the prices have slightly decreased in the early stage, cost support is still there. Cryolite enterprises are mainly wait-and-see, and some manufacturers adjust according to their own shipment situation. The terminal downstream inventory is weak, and the demand for cryolite is weak, resulting in a weak and stable cryolite market.

Prediction: It is difficult to improve the supply of domestic fluorite mines in the later stage, some mines will be shut down for safety inspections, and the operating rate of the fluorite industry will be difficult to increase. The confidence of fluorite enterprises in raising prices remains strong, and fluorite prices will continue to rise. Downstream hydrofluoric acid products are significantly supported by fluorite. In addition, the export of the refrigerant industry has rebounded, and the mentality of refrigerant manufacturers has gradually improved. The start of production has been sluggish. Overall, there is significant positive support, and the fluorine chemical market will continue to rise in the later stage.

According to the Commodity Market Analysis System of the Business Society, the PP market rose in early September, with various wire drawing brands fluctuating and rising. As of September 12th, the mainstream quoted price of T30S (wire drawing) by domestic producers and traders is around 7914.29 yuan/ton, with an increase or decrease of+2.40% compared to the average price level at the beginning of the month.

Cause analysis

Industry chain: In early September, in terms of PP raw materials, the propylene market in Shandong fell, resulting in poor upstream supply and inventory accumulation. The focus of transactions continued to shift downwards. The price of methanol has also eased. However, there has been an increase in international oil prices, coupled with an increase in maintenance of PDH devices in the early stages, resulting in strong cost support for oil based and PHD based PP. Overall, the cost support for polypropylene is still acceptable.

The trend of raw materials in all directions has increased with a decrease, and there is support for PP on the cost side. In terms of industry load, the overall industry load has been around 78% recently, with a lower position compared to previous fluctuations. The overall supply of goods is stable, and the on-site supply of goods is sufficient. In terms of demand, there has been a slight increase compared to the previous period, with downstream plastic weaving production remaining at over 40% and leveling off. In terms of film materials and injection molding, the operating rate of enterprises has remained around 60%, with an overall position of horizontal. The stocking situation of terminal enterprises is based on demand procurement, and the market performance is gradually warming up due to the influence of traditional peak seasons. It is expected that the consumption of plastic weaving and packaging may show a seasonal increase.

In terms of fiber materials, according to the Commodity Market Analysis System of Business Society, as of September 12th, the spot price of domestic fiber PP has increased. The mainstream quoted price of domestic producers and traders for Z30S (fiber) is around 7925 yuan/ton, with an increase or decrease of+3.43% compared to the average price at the beginning of the month, and a decrease of -2.56% compared to the same period last year. Recently, the main downstream non-woven fabric enterprises of PP fiber materials have seen a narrow increase in load, with an overall operating rate of over 35%. The demand for fiber materials in the market has increased compared to the previous period, and the digestion speed of non-woven end products is still acceptable. The enterprise’s efforts to replenish fiber PP have increased the industry load. It is expected that in the short term, there may be cost and demand support for fiber materials, leading to a stronger finishing operation.

In terms of melt blown materials, the recent melt blown PP market has been relatively strong. As of September 12th, the average quotation of domestic melt blown material sample enterprises monitored by the Commodity Market Analysis System of the Business Society is about 8175 yuan/ton, which is 0.93% higher than the average price level at the beginning of the month and 11.46% lower than the same period last year. At present, the domestic and international news of the health incident has basically subsided, and the consumption of medical meltblown fabric materials is weak. There is also no significant boost in domestic and foreign demand. The main support for the market is the cost side, and it is expected that the melt blown material market may maintain a stronger consolidation market.

Future Market Forecast

PP analysts from Business Society believe that the polypropylene market rose in early September. The overall trend of upstream raw materials is relatively strong, and the support from the cost side for the market is still acceptable. The construction of terminal enterprises continues to maintain the previous level, and goods are just needed. It is expected that the PP market will gradually enter the peak season and continue to strengthen in the short term.

1、 Price trend

According to the Commodity Market Analysis System of the Business Society, the average market price of 55% powdered ammonium phosphate in China on September 4th was 3083 yuan/ton. On September 8th, the average market price of 55% powdered ammonium phosphate in China was 3116 yuan/ton. This week, the market price of monoammonium phosphate increased by 1.08%.

According to the Commodity Market Analysis System of the Business Society, the average market price of 64% diammonium phosphate in China on September 4th was 3850 yuan/ton. On September 8th, the average market price of 64% diammonium phosphate in China was 3875 yuan/ton. This week, the market price of diammonium phosphate increased by 0.65%.

2、 Market analysis

The market price of ammonium phosphate continued to rise this week. The prices of raw materials such as phosphate ore and sulfur have increased, resulting in increased cost-effectiveness. Under the support of pending orders in the monoammonium phosphate market, the market continues to be strong and upward. The spot price of diammonium phosphate in the market is tight, and as the autumn wheat fertilizer needs to follow up, the price of diammonium phosphate continues to strengthen. As of September 8th, the market quotation for 55 powdered ammonium in Hubei Province is around 3100 yuan/ton, with actual negotiations being the main focus. The quotation for 64% ammonium chloride in Shandong region is around 3750-4000 yuan/ton, and the actual transaction is negotiated.

In terms of raw sulfur, the domestic sulfur market has shown an upward trend this week. As of September 8th, the reference average price of sulfur in East China is 1176.67 yuan/ton.

In terms of raw material phosphorus ore, the domestic mid to high-end grade phosphorus ore market overall rose this week. The trading atmosphere in the domestic phosphate ore market has improved, and downstream demand has boosted. The supply of mid to high-end grade phosphate ore in the field is tight, and spot circulation is low. The mentality of phosphate ore industry has improved, and some mining enterprises in some regions have raised the prices of mid to high-end grade phosphate ore.

3、 Future Market Forecast

Analysts from the Business Society believe that the ammonium phosphate market has been continuously rising due to strong costs and pending orders. At present, the market supply is increasing, downstream procurement is cautious, and distributors are actively shipping. It is expected that the short-term rise in ammonium phosphate will slow down, with high level consolidation and operation being the main focus.

1、 Price trend

According to the monitoring of the commodity market analysis system of the Business Society, the price of Yungui yellow phosphorus market remained stable and increased this week. The average price of yellow phosphorus at the beginning of the week was 26293 yuan/ton, and the average price at the weekend was 26400 yuan/ton. The price increased by 0.41% during the week.

2、 Market analysis

This week, the market price of Yungui yellow phosphorus remained stable and slightly increased. The overall trading and investment situation of yellow phosphorus market is relatively good. The price of upstream phosphate rock rises, and the cost support is awesome. At present, manufacturers mainly place early orders, with high prices as the main focus, and there is not much inventory on site. Some manufacturers do not provide external quotations for the time being. As of now, the market quotation is around 26300-26500 yuan/ton, and the actual transaction is negotiated separately.

In terms of phosphate ore, the domestic phosphate ore market has been on the rise this week. At the beginning of the week, the average price of phosphate rock was 876 yuan/ton, while at the weekend, the average price was 912 yuan/ton. During the week, the price increased by 4.11%. At present, the overall atmosphere of the phosphorus ore market is moderate, with some recovery. The overall supply side is relatively tight, providing some support to the market. The recovery of stable downstream demand has boosted market confidence. The phosphorus ore data analyst of the Business Society believes that in the short term, the domestic phosphorus ore market will mostly operate in a stable, medium to strong manner, and the specific trend still needs to pay more attention to changes in supply and demand news.

In terms of coke, the market price of coke in Shandong Port is temporarily stable, with a quasi first level ex-warehouse price of around 2150-2200 yuan/ton and a first level ex-warehouse price of 2250-2300 yuan/ton. The port market is currently operating steadily, with inventory in the two ports slightly increasing and port consolidation slightly improving. However, the actual trading volume in the spot market is relatively low. In terms of shipping cost, it is 190 yuan/ton from Xiaoyi to Rizhao Port on the 8th, and 180 yuan/ton from Jiexiu to Rizhao Port.

In terms of phosphoric acid, the market price of phosphoric acid has increased this week. At the beginning of the week, the average price of phosphoric acid was 6941.67 yuan/ton, and at the weekend, it was 7040 yuan/ton. During the week, the price increased by 1.42%. It is expected that the phosphoric acid market will improve in the short term and wait for the trend of raw materials.

3、 Future Market Forecast

Yellow phosphorus analysts from the Chemical Branch of the Business Community believe that the current upstream phosphate rock price rise, coke price stability, and cost support awesome. Next week will be a critical period for pre holiday stocking, and downstream enterprises may increase demand. Under the combination of positive and negative factors, it is expected that the yellow phosphorus will be mainly strong in the short term, and we will pay attention to changes in the news.

According to the monitoring of the Commodity Market Analysis System of Business Society, the prices of industrial grade and battery grade lithium carbonate continued to decline this week. The average domestic mixed price of industrial grade lithium carbonate on September 7th was 202600 yuan/ton, a decrease of 3.52% compared to the average price of 210000 yuan/ton on September 3rd. The average domestic mixed price of battery grade lithium carbonate on September 7th was 216800 yuan/ton, a decrease of 3.21% compared to the average price of 224000 yuan/ton on September 3rd.

By observing market changes, it can be seen that the price of lithium carbonate is still in a downward trend this week. In terms of supply, there is little fluctuation in the production output of lithium salt factories, and there is sufficient circulation of goods in the spot market. The current situation of oversupply in the spot market is maintained. As the node has entered a new round of long-term negotiation cycle, with high upstream inventory and market supply and demand imbalance, most downstream manufacturers have low purchasing intentions, leading to a downward shift in lithium carbonate prices.

In terms of demand, the upstream and downstream of the industry currently hold a wait-and-see attitude towards lithium salt prices. The recovery of downstream demand is poor. Although there are frequent inquiries, both procurement and actual transactions are relatively light, and delays in picking up and negotiating orders often occur. In addition, the continuous decline in lithium carbonate futures prices has led to a continuous decline in spot prices.

The lithium hydroxide market has declined, with a slight decline in spodumene concentrate prices and a decrease in lithium carbonate prices recently. Cost support has weakened, and production enterprises mainly rely on long-term orders. Downstream merchants just need to purchase, resulting in weak demand and a lackluster market transaction atmosphere.

Downstream lithium iron phosphate prices operate steadily, while upstream raw material cost support is weak. Market demand is poor, and downstream restocking is on demand. The willingness to stock up is average, and the overall purchasing atmosphere is cold. In the short term, the lithium iron phosphate market operates steadily and weakly.

In terms of futures, on September 7th, the opening price of the LC2401 contract for lithium carbonate futures on the Guangzhou Futures Exchange was 190000 yuan/ton, with the latest price of 184700 yuan/ton, a daily decrease of 3.35%. The transaction volume was 61600, and the position was 32985.

Lithium carbonate analysts from Business Society believe that the current market supply and demand pattern has not changed significantly, and most downstream manufacturers have low purchasing intentions. It is expected that lithium carbonate prices will continue to fluctuate at low levels in the short term.