Price of Petroleum Products Market to Rebound Significantly Better

Recent growth of domestic output of most petrochemical products, prices rise, companies increase in gross profit, comprehensive analysis of the industry that the Chinese economy is entering a new growth period, the petrochemical industry’s development momentum will remain the next two to three months.Nov., the international market naphtha prices continue to rise, driven lower olefins and derivatives prices in Southeast Asia has begun to rebound. From the domestic situation, Dushanzi ethylene production makes the country a substantial increase in ethylene production, while most of the output of petrochemical products maintained rapid growth, while imports declined. In crude oil prices, led most of the petrochemical product prices were rising. In November, the price index for chemical products 196.5, up 6.2% last month, up 43.1% year on year; naphtha price index 330.3, up 3.6% last month, up 35.2% year on year.

Into December, the domestic economy to rebound. Data show that China’s manufacturing index for 9 consecutive months, more than 50%, in particular, product orders and export orders index were significantly increased, reflecting the domestic manufacturing sector has entered a new period of expansion. The index is expected in December will further increase, exports continue to be effectively restored. From the perspective of specific industries, plastics processing companies operating rate in December was 81% of the textile machine starts at about 73%, tire processing industry operating rate remained at 90%.

Polyolefin Way Call

In November, the international crude oil prices, strong Asian ethylene prices, while domestic demand side due to reduced imports and a smooth recovery, making polyolefin prices continued to rise. In December, the Middle East and China gradually put into operation new ethylene projects and normal operations, so that a relatively abundant supply of polyolefins, a certain pressure on prices. But crude oil prices will continue to rise, coupled with the effective boost polyolefin demand, is expected to increase exports of plastic products and so on, will support the price formation.Industry insiders believe that, in December, the domestic prices to shocks mainly polyolefins, and in November the average price of flat or slightly higher. January 2010, due to further increase supply, combined with domestic consumption will gradually enter the off season, the domestic prices will remain downward trend polyolefin.

It is understood that price changes affect the main factors polyolefin performance in five areas: the supply continues to increase, prices will inhibit the polyolefin; Association of Southeast Asian Nations zero tariff policy will increase China’s imports, the price pressure polyolefin; steady rise of the world economy, China sustained economic growth, demand continues to boost the price of the polyolefin is a good support; the recent shock in the international crude oil prices, greater upward pressure in December, will support the consolidation of polyolefin prices at current levels; domestic plastic products prices rose significantly , producers have a certain stock, the recent increase in inventory desire is not strong.

Is expected in December 2009 crude oil prices continue to hover at a high level to drive the price of naphtha has risen slightly. Meanwhile, the polyolefin to maintain high average price last month, so polyolefin basically the same margin in November. 1 February 2010, crude oil prices will continue to remain high, but because of the new ethylene projects with lower productivity growth than the demand growth is estimated to olefins and polyolefins prices in Southeast Asia than in December will be down, but decline not, therefore will be a slight decline in gross profit polyolefin.

More Optimistic Acrylic Polyester

In November, the international market prices rebound polyester chain products. From the balance of supply and demand, raw material price movements, alternative products, and analysis of such factors as trends in terms of trade this year, December to February next year, the market price trends for fiber more optimistic. Expected crude oil prices and tight supply and demand side support, in December of p xylene (PX) spot prices will likely rebound slightly, the average price is higher than in November, propylene prices may drop from the peak.In addition, the majority of the production device will function properly, which may gradually weakened downstream demand, cotton prices are likely to steadily, and is expected in December 2009 the average price of acrylonitrile and acrylic still higher than in November, but the price trend may with the end of the year the arrival of some weakness, acrylonitrile tight supply situation is difficult to significantly improve.

Synthetic Rubber Rose Slightly

November, gradually reduce the price of butadiene, synthetic rubber rose significantly. With the gradual release of new capacity, domestic market prices tumbled butadiene, styrene prices rebounded. At the same time, butadiene and styrene butadiene rubber margin recovery, synthetic rubber producers to increase efficiency.As the main raw material of synthetic rubber prices declined in November, while prices of butadiene and styrene butadiene rubber, synthetic rubber, so that gross profit increased significantly. In December, is expected to maintain the domestic synthetic rubber price shocks trend may be slightly higher, basic and gross margin was flat in November. Month of 2010, 1,2 synthetic rubber price shocks sideways, slightly more likely to reduce.

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