October 23: The market is watching the potential escalation of conflicts between the US and Iran, along with the risk that Saudi energy facilities may continue to be attacked by Houthi armed groups, leading to a rise in international crude oil prices. NYMEX WTI crude oil futures for December delivery rose $3.80/bbl to $103.27, an increase of +3.82% compared to the previous session; ICE Brent crude oil futures for December delivery rose $3.55/bbl to $116.72, an increase of +3.14%. China INE crude oil futures contract SC2612 rose by 15 yuan/barrel to 717 yuan/barrel, and further increased by 27.4 yuan/barrel to 744.4 yuan/barrel during the night session.
Propylene Oxide (PO): On the previous trading day, the domestic PO market center shifted upward. On the supply side, Jinling Chemical gradually halted operations for maintenance. Production plants saw improved shipment volumes starting from yesterday afternoon, alleviating inventory pressure. While some continued this trend today, propylene feedstock prices surged significantly, creating a bullish atmosphere and encouraging downstream buyers to follow up on purchases. Market transactions were active, suggesting short-term strong performance.
| Product | Region | Oct 22 | Oct 23 | Change Rate |
|---|---|---|---|---|
| Dimethyl Carbonate (DMC) | Shandong | 5025 | 4875 | -2.99% |
| DMC | East China | 5125 | 5025 | -1.95% |
| DMC | South China | 5800 | 5700 | -1.72% |
| DMC | Northwest China | 4405 | 4405 | 0.00% |
| Notes: 1. DMC refers to industrial grade. 2. Unit: CNY/ton. 3. RMB prices listed above: Shandong is ex-works acceptance bill; East China is delivered acceptance bill; South China is delivered wire transfer; Northwest China is ex-works wire transfer. 4. Change rate is the period-over-period percentage change. |
| Data Indicator | Release Time | Previous Period | Current Trend Forecast |
|---|---|---|---|
| Weekly DMC Output | Thursday 17:00 PM | 59,900 tons | ↗ |
| Weekly PO Operating Rate | Thursday 17:00 PM | 70.26% | ↗ |
| Weekly DMC Operating Rate | Thursday 17:00 PM | 78.72% | ↗ |
| Weekly Profit via PO Transesterification (CNY/ton) | Thursday 17:00 PM | 179.3 | ↘ |
| Notes: 1. ↑↓ indicates significant volatility, highlighting data dimensions with changes exceeding 3%. 2. ↗↘ indicates narrow-range fluctuations, highlighting data dimensions with changes within 0-3%. |
Prediction: On the previous trading day, the domestic DMC market continued its downward trend, with declines deepening. Facing persistent inventory pressure, factories proactively adjusted quotes, lowering prices to stimulate orders and showing a clear willingness to sell at a discount. As price centers moved lower, overall market transaction sentiment improved slightly compared to earlier periods, with increased inquiry activity and better deal execution. Downstream end-users maintained rigid demand procurement rhythms, moderately stocking up at lower prices. Chempricehub believes that the domestic DMC market will primarily operate weakly in the short term.
Comments
0