In October, the production of important basic chemical raw materials in China continued to grow

In October, the production of important basic chemical raw materials in the country continued to increase. The prices of most organic chemical raw materials were lowered, and the inorganic chemical market was picking up.

According to the data from the China Petroleum and Chemical Industry Association, due to the expansion of energy, the production of important basic chemical raw materials in China continued to increase in October. Excluding glacial acetic acid and dyes, the output of other products increased at different levels from the same period of last year. At the same month, the output of ethylene, pure benzene and refined methanol were 757,000 tons, 297,000 tons and 703,000 tons, respectively, an increase of 16.7%, 20.3%, and 44% respectively. Glacial acetic acid and dye production were 114,000 tons and 107,000 tons, respectively, down 10.3% and 2.9% year-on-year respectively. Caustic soda production was 1.346 million tons, an increase of 19.8% year-on-year; soda ash production was 1.395 million tons, a year-on-year increase of 10.4%.

As the price of crude oil fell further from around US$65/bbl in September to below US$60/bbl, organic chemicals that have continued to operate at high levels also have room for downward adjustment. Benzene, toluene, o-xylene, phthalic anhydride, and purified terephthalic acid Prices of such products continued to fall. Some products such as acetone, phenol, methanol, butanol, and octanol are subject to high demand and high import prices, which are still at high prices. However, the fall in oil prices makes the market bearish expectations are stronger, the willingness of downstream users to purchase is not strong, and the high price level is difficult to maintain. The entire market shows a situation of ups and downs. Among the 73 organic products tracked by the China Petroleum and Chemical Industry Association, the quarter-on-quarter declines and rises accounted for 47.9% and 41.1%, respectively, which was more than a slight increase. Due to the self-sufficiency of most organic chemicals in China, it needs a lot of dependence on imports, so it is greatly affected by the trend of the international market. At present, international organic chemicals are still operating at a relatively high level, and they have some support for domestic trends.

In October, the inorganic chemical market rebounded. Prices of major inorganic acid products such as nitric acid, hydrochloric acid, phosphoric acid, and sulfuric acid, and caustic soda all rose. Affected by the overhaul of some large-scale production enterprises and the strong demand for downstream aniline, the concentrated nitric acid market was fully launched in October. It showed the characteristics of tight supply of resources and a slight increase in prices. The average price of the market exceeded 2,300 yuan/ton, compared with September. It rose 1.1% but still dropped 4.8% year-on-year. As the temperature in the northern part of the hydrochloric acid market dropped and the thermoelectric industry began to wash heating equipment, demand rose, and prices rose slightly, by 6.4%. The downstream demand for caustic soda continued to be strong, and the export momentum was also very strong. The product sales were in good condition and the prices further increased. The price of liquid caustic soda reached 560 yuan/ton, which was 5.7% higher than that in September, second only to January. After four consecutive months of rising soda ash, the market tends to consolidate. The average price of the heavy ash market was 1,600 yuan/ton, which was 2.4% lower than that in September but slightly up by 2.6% from the same period of last year. The calcium carbide market also fell. In October, the average price of calcium carbide was 2,640 yuan/ton, which was 2.2% lower than that in September. The main reason was that the PVC of its largest downstream users had plummeted. The average market price was 7680 yuan in September. Ton fell to 7,000 yuan/ton, a single monthly decline of 700 yuan, which seriously affected the demand for calcium carbide; on the other hand, due to the sharp increase in domestic calcium carbide prices in the first two months, which led to an increase in the operating rate of calcium carbide enterprises and a rapid increase in output. In September and October, the output was kept above 1 million tons continuously, and the market resources were too abundant.

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