In July, the domestic butanone market by the domestic and foreign demand shortage, the market showed a sharp downward trend, prices fell below the cost line, some factory installations to reduce production or parking, to ease the supply pressure, superimposed on the end of the month phase to fill the short support, butanone market stopped falling back up. After entering August, the market supply is not tight, and in the high cost of low demand on the squeeze under pressure, the market continues to run weak. As of now, the East China market price reference 7,700 yuan / ton spot exchange from the end of July, down 300 yuan / ton, down 3.8%.

On the cost side, in August, despite OPEC’s decision to increase production only slightly, but the U.S. EIA inventory unexpectedly increased, demand concerns led to oil prices under pressure, international crude oil prices showed a downward trend, forming a suppression of the petrochemical market. However, butanone raw material ether after the carbon four market recently low inventory operation, prices are still slightly up, butanone cost side of the strong support. As of now, butanone East China market price reference 7700 yuan / ton spot exchange, Shandong market after the ether carbon four market average price in 6450 yuan / ton, butanone and ether carbon four price difference of only 1250 yuan / ton, the current loss pressure, resulting in butanone manufacturers production enthusiasm is low.

Supply-side start-ups, due to the high cost pressure on butanone plants, some enterprises loss pressure forced to stop or postpone the start-up, the overall domestic butanone plant start-up load gradually declined to 43.8%, the current parking capacity of 340,000 tons, accounting for 42.8% of the total capacity of butanone. However, because the market demand side of no improvement, the spot market sources of slow consumption, the supply side did not appear shortage of goods phenomenon.

On the demand side, the traditional off-season combined with the real estate drag on the economy off-season impact of downstream coatings, adhesives, pastes and other industries start rate is low, some downstream devices for a long time in the parking state, the consumption of butanone weakened. At the same time, exports, seasonal effects and overseas economies are expected to recession under the export demand may still be suppressed. August is the key node to connect the “golden nine silver ten”, the second half of the market demand or the possibility of marginal improvement, still need to pay attention to the economic stimulus policy implementation under the degree of repair.

Overall, the short-term in oil prices and demand-side constraints, butanone market overall price center of gravity is expected to move down, but raw material prices are still high, under pressure on costs, factory start-up load continues to be low, and with the intensity of losses price increase, do not rule out the possibility of further production cuts, to match the new supply and demand balance, while focusing on the demand-side recovery later this month, is expected to August butanone market overall weak oscillation Run, the downside space is limited.

Chemwin is a chemical raw material trading company in China, located in Shanghai Pudong New Area, with a network of ports, terminals, airports and railroad transportation, and with chemical and hazardous chemical warehouses in Shanghai, Guangzhou, Jiangyin, Dalian and Ningbo Zhoushan, China, storing more than 50,000 tons of chemical raw materials all year round, with sufficient supply, welcome to purchase and inquire. chemwin email: service@skychemwin.com whatsapp: 19117288062 Tel: +86 4008620777 +86 19117288062