According to data monitoring from Business Society, the prices of industrial grade and battery grade lithium carbonate were still in a downward trend in April, and prices rebounded towards the end of the month. On April 27th, the average domestic mixed price of industrial grade lithium carbonate was 174000 yuan/ton, a decrease of 22.53% compared to the average price of 224600 yuan/ton on April 1st. On April 27th, the average domestic mixed price of battery grade lithium carbonate was 200000 yuan/ton, a decrease of 22.78% compared to the average price of 259000 yuan/ton on April 1st.

By observing market changes, it can be seen that the overall price of lithium carbonate in April remained in a downward trend. In terms of supply, the overall inventory level of the lithium carbonate market in mid to early April was still at a high level, and there was no significant reduction in volume. Subsequently, due to the gradual warming of temperature, the production capacity of salt lakes in Qinghai and other regions gradually recovered, and with the continuous improvement of technologies such as spodumene lithium extraction, salt lake lithium extraction, and mica lithium extraction, the production of lithium carbonate steadily increased.

In late April, some mica enterprises and lithium salt factories still have a large number of OEM and production cuts due to cost inversion and other issues. Driving the recent decline in the operating rate of lithium carbonate, there has been a shortage of spot supply in the market, and the price of lithium carbonate has risen at the end of the month.

In terms of demand, the willingness to receive downstream goods in the lithium carbonate market was still weak in April, leading to increasingly weak market demand in the early stages. In addition, the growth rate of terminal new energy vehicle sales is still slow, and many downstream battery companies have sufficient reserves of lithium carbonate. As demand falls short of expectations, procurement reductions and delays in delivery occur from time to time, gradually spreading to the upstream of the industry chain. The increase in reserves has led to a lag in the actual demand for lithium carbonate.

As the end of the month approaches, the activity of the lithium carbonate market has increased, and downstream inquiries are gradually increasing. In addition, there are fewer spot goods in the market and holders are more reluctant to sell, which has led to an increasingly tight market situation and increased demand for lithium carbonate, leading to a rebound in prices.

The downstream lithium hydroxide market continued to decline, with a decline in the lithium carbonate market in early April, which resulted in poor support for the lithium hydroxide market. Supply side enterprises mainly focus on normal production, while domestic market demand is weak, spot market transactions are limited, and the mentality of operators is poor. The lithium hydroxide market is weak. In the middle of the year, downstream demand weakened, purchasing intentions were low, and high market prices put pressure on transactions. In the second half of the year, the cost support is still weak, and the market supply is relatively abundant. Downstream procurement is cautious, and the lithium hydroxide market continues to decline.

The downstream price of lithium iron phosphate remained downward, but in April, due to the continuous decline in lithium carbonate prices, there was a lack of support for the cost side of lithium iron phosphate. In addition, the demand for lithium iron phosphate in downstream electric vehicles is insufficient, and the industry is facing inventory pressure and continues to lower prices. Under the sentiment of buying up rather than falling, the purchasing enthusiasm is cold, and manufacturers often hold a wait-and-see attitude.

According to lithium carbonate analysts from Business Society, the current lithium carbonate market has active inquiries, but there are relatively few spot orders, highlighting the market’s reluctance to sell. In addition, due to factors such as upstream production reduction, terminal consumption, and inventory reduction, it is expected that the price of lithium carbonate may be slightly stronger in the short term.

According to the Commodity Market Analysis System of the Business Society, as of April 25th, the average price quoted by formic acid companies was 3875.00 yuan/ton, which is the same as the price on April 1st.

The formic acid market remained stable at a high level in April. In the first ten days, the price of raw material sulfuric acid increased, while the price of raw material methanol decreased. The cost impact was limited, and the main downstream formate market was mainly based on demand procurement. The supply and demand support was still good, and the high and stable center of gravity of formate prices was the main focus. In the middle and later stages of the year, the price of raw material sulfuric acid rose first and then fell. The price of raw material methanol remained strong, and cost support remained. Downstream pesticide, rubber, leather, and pharmaceutical industries purchased goods according to market demand before the festival, with orderly market transactions and stable high formic acid prices.

In terms of cost: Upstream sulfuric acid, according to the Commodity Market Analysis System of Business Society, the reference price for sulfuric acid on April 25th was 235.00, a decrease of 2.08% compared to April 1st (240.00); Upstream methanol, according to the Commodity Market Analysis System of Business Society, the reference price for methanol on April 25th was 2520.00, a decrease of 1.63% compared to April 1st (2561.67).

Business Society formic acid analysts believe that the overall price of the domestic industrial grade 85% formic acid market is generally stable, with little impact on the cost side. Market inquiries and procurement are mainly in demand, and it is expected that in the short term, the domestic industrial grade 85% formic acid market may operate at a high level, and more attention should be paid to market news guidance.

According to the Commodity Market Analysis System of Business Society, from April 14 to April 21, 2022, the ex factory price of hydrogenated benzene in North China increased by 0.68% from 7350 yuan/ton last weekend to 7400 yuan/ton this weekend.

In terms of crude oil: Recently, the crude oil market has slightly declined. As of the 20th, the settlement price of the main contract for WTI crude oil futures in the United States was $77.37/barrel, while the settlement price of the main contract for Brent crude oil futures was $81.10/barrel. In early April, due to the news of production cuts from oil producing countries, the supply side of crude oil tightened, US crude oil inventories decreased, and strong demand from China for crude oil provided some support for international oil prices, leading to a significant increase in international oil prices. Recently, the market is worried about the performance of the Federal Reserve’s interest rate increase. The strengthening of the US dollar suppresses oil prices. In addition, the increase of the US crude oil inventory depresses the market, and the price trend of the crude oil market falls back.

The factory price of Sinopec pure benzene has increased by 300 yuan/ton on April 4, 2023, and is currently at 7500 yuan/ton.

Other companies: Jingbo Petrochemical quoted 7620 yuan/ton, HSBC Petrochemical quoted 7500 yuan/ton, Weilian Chemical quoted 7403 yuan/ton, Xinhai Petrochemical quoted 7400 yuan/ton, and Hongrun Petrochemical quoted 7500 yuan/ton.

The K-bar chart of commodity prices uses the concept of a price trend K-line to reflect weekly or monthly price fluctuations in the form of a bar chart. Investors can buy and sell investments based on the changes in the K-bar chart. Red indicates an increase; Green indicates a decline; The height of the K-bar represents the range of fluctuations. The weekly K-bar chart of pure benzene shows that after entering July, the price of pure benzene has continued to decline, with a slight rebound in late August and early September. The price mainly decreased from October to December, rebounded in January, fluctuated narrowly after February, and overall rose in March.

In terms of industrial chain: This week, crude oil prices fluctuated at a high level and then went down, while the pure benzene market first rose and then fell. At the beginning of the week, both crude oil and styrene were trading at high levels, with a strong market mentality, while pure benzene prices were trading at high levels. During the weekend, crude oil took the lead in falling, styrene fluctuated downward, and the pure benzene market was dragged down by a narrow decline in prices.

The hydrogenation benzene market fluctuated with the trend of pure benzene this week, with the overall trend rising first and then falling. As of the 21st, the mainstream market price in East China was 7450~7500 yuan/ton. The factory price in the main production area is 7400 yuan/ton, a slight increase of 50 yuan/ton compared to last week. In terms of supply, the recent performance of the hydrogenation benzene market has been good, with enterprises actively operating and operating rates slightly increasing. In terms of demand, the downstream performance has been average recently, with a strong mentality of purchasing at low prices, and most of them maintain just in demand procurement. In terms of future market prospects, crude oil and styrene fell over the weekend, while the pure benzene market slightly weakened. Currently, the inventory of pure benzene in East China is slightly high, indicating a bearish market outlook. However, companies approaching small and long holidays have a pre holiday stocking intention, and prices are expected to remain stable, moderate, and weak overall, supported by stocking demand.

Market analysis for this week

According to the monitoring of Business Society, as of the 23rd, the average price of magnesium ingots in the domestic market was 27500 yuan/ton, a decrease of 4.62% on a weekly basis. This week, the foam of magnesium ingot market price rise was broken, and the price fell broadly. At the beginning of the week, the market price rose to 28500-30000 yuan/ton, and the overall transaction in the market was average. Some manufacturers cut prices to choose the opportunity to ship. Starting from Tuesday, the price of magnesium gradually decreased to around 27500 yuan/ton.

In terms of supply and demand

In terms of factories, many manufacturers, in view of the current magnesium price profit in line with expectations, took the initiative to give up the price for shipment, and the market price was also lowered. There are also large manufacturers whose quotations remain firm, resulting in the coexistence of high and low resources in the market. In terms of demand, there is currently no further news on the blue charcoal rectification policy. The downstream market is gradually returning to rationality, and considering the continuous rise in magnesium prices in the early stage, which exceeds the downstream acceptance range, downstream demand space is limited.

In terms of raw materials

The average market price of ferrosilicon in Ningxia is 7511.43 yuan/ton, with a spot price fluctuation of about 10-20 yuan/ton. This week, the price of ferrosilicon rose first and then fell, and the market hype dissipated. Short term ferrosilicon is currently constrained by weak demand and will experience periodic fluctuations. The raw material blue charcoal market is operating steadily and weakly, with mainstream prices for small and medium-sized materials in the Shenmu market ranging from 1280 to 1470 yuan/ton.

Future Market Forecast

Overall, the enthusiasm for the rectification of Lancan has gradually faded, and the magnesium ingot market is gradually returning to rationality. In the absence of other favorable factors, the market price returns to the fundamentals. Downstream market demand cannot continue to follow up, and there is a strong bearish sentiment in the market. It is expected that magnesium prices will be weak in the short term.

Price trend chart of sodium pyrosulfite in China

According to the Commodity Market Analysis System of Business Society, the price of domestic sodium metabisulfite decreased slightly this week. The average price of industrial grade sodium metabisulfite at the beginning of the week was 2366.67 yuan/ton, and the average price at the weekend was 2350.00 yuan/ton, with a slight decrease of 0.70% during the week.

The domestic sodium metabisulfite market performed generally this week. Some enterprises lowered the market price slightly, driving the overall price of domestic sodium metabisulfite market to decline slightly. The market price of industrial sodium metabisulfite this week ranged from 2300-2500 yuan/ton, and most prices were concentrated around 2300-2400 yuan/ton. The inventory of the enterprise is about 30%, and the enterprise mainly completes orders from old customers. (The above prices refer to external quotations from mainstream domestic enterprises, and some enterprises that have not been quoted are temporarily excluded from their scope. The prices are for reference only and are not related to the manufacturer’s final pricing. For more information, please contact each manufacturer for consultation.).

As of April 21, the price of domestic soda ash has dropped by 2.9%, and the price of sulfur has dropped by 22.81%. The continuous weakness of upstream raw material price will further suppress the future market price of sodium metabisulfite.

Future Market Forecast

Analysts from the business community believe that the cost of raw materials continues to decline, the overall purchase and sales of downstream are cautious, and the domestic market price of sodium metabisulfite still has some room to fall in the short term under the suppression of many bad news.

According to the analysis system of the commodity market of the Business Society, as of April 17th, the price trend of PET water bottle grade has been upward, with a slight increase in price. Compared to the same period last week, the price has increased by 3.35%, and the current average price is 7896.00 yuan/ton. The mainstream price is around 7900 yuan/ton. The supply and demand of the PET market is balanced, and the focus of negotiations is on the rise.

From the weekly K-bar chart of PET, it can be seen that since 2023, the price of PET has shown a continuous upward trend. In the first quarter, the overall market supply of PET was tight, and the price increase was significant. After entering the narrow and weak PET market in early April, the price rose again. The raw materials were boosted, and the cost support was strong, driving the focus of negotiations in the PET market to rise and prices to rise.

In terms of demand: The overall market negotiation atmosphere for PET is good, and the focus of negotiations has increased. In the first quarter, there was a tight supply of goods, but in the second quarter, demand has recovered, terminal operating rates have increased, raw material cost support is strong, and downstream procurement enthusiasm has increased.

Upstream: The PTA price of upstream raw materials is relatively strong, and the market situation has slightly increased. Currently, there is sufficient supply, and cost pressure still exists. In the short term, it will maintain a stable, medium, and strong trend. Upstream ethylene glycol has a narrow range and strong trend, and in the short term, the trend is improving. Supply side pressure is increasing, and some enterprises have maintenance plans.

PET analysts from the business society believe that PET prices are mainly affected by the cost side of upstream PTA. At present, PTA operates at a high level, and prices rise. In addition, with the temperature rising, the market’s demand for bottled water increases, and the demand side of PET will further improve. It is expected that the price of PET will easily rise but not fall in the short term.

Price trend

Recently, the domestic POM market has declined, and prices have often been adjusted. According to data monitoring by Business Society, as of April 14th, the average factory price of domestic POM was 14225 yuan/ton, with a monthly increase or decrease of -0.35%.

Cause analysis

In terms of raw materials: recently, the price of formaldehyde market in Shandong has fluctuated and dropped. As can be seen from the figure below, the recent market of formaldehyde is mainly declining, and this week’s market continues to decline. The overall price of raw material methanol is showing a downward trend, while formaldehyde manufacturers have a high willingness to maintain inventory and controllable shipments. Downstream delivery sentiment is poor, and the market is fluctuating and declining.

In terms of supply: Recently, the operating rate of domestic POM enterprises has decreased significantly, with an industry load of about 87%. Some enterprises have seen an increase in inventory and a narrow decline in processing profits.

In terms of demand: In terms of demand, the enthusiasm of terminal enterprises for stocking has weakened, and the release of demand is average, which has limited impact on the promotion of spot prices. At present, the mentality of traders on the market is not strong, with buyers buying up instead of falling, and the orders are light and biased towards a single negotiation. There is often a practice of giving up profits and taking orders.

Future Market Forecast

The POM market fell this week. The high operating rate of domestic polymerization plants has decreased, leading to local inventory pressure. The demand side enterprises just need to replenish less, and some downstream operating rates are low, resulting in few actual transactions. It is expected that the negative market situation may continue in the short term, leading to a continued decline in prices.

According to data monitored by the Business Society, the PP market has seen significant stability and slight fluctuations recently, with various wire drawing brands showing a slight increase. As of March 31st, the mainstream quoted price of T30S (wire drawing) by domestic producers and traders is around 7825.71 yuan/ton, with a decrease of -1.25% compared to the average price level at the beginning of the month.

Cause analysis

Industry chain: On the upstream side, the propylene market in Shandong has recently rebounded. Downstream procurement is cautious and enters the market on dips. Low demand for propylene is increasing, while upstream exploration is driving up. The low level sales of propylene factories are smooth, effectively reducing inventory, and it is expected that the propylene market will continue to rise in a narrow range in April.

The price of propylene rebounded after falling, gradually recovering from the cost side of PP. In terms of industry load, there have been limited changes in the operating situation of PP enterprises this week. The overall industry load has remained stable at around 80%, with stable supply and sufficient on-site supply, resulting in increased supply pressure. In terms of demand, the operating rates of downstream plastic weaving and film materials enterprises are fluctuating, and the stocking situation of terminal enterprises is average, with on-demand procurement being the main focus.

In terms of fiber materials, according to data monitored by Business Society, as of March 31, the spot price of domestic fiber PP has declined in a narrow range. The mainstream quoted price of domestic producers and traders for Z30S (fiber) is around 7712 yuan/ton, with an increase or decrease of -2.37% compared to the average price at the beginning of the month, and a decrease of -14.46% compared to the same period last year. Recently, the downstream non-woven fabric enterprises, which are the main force of PP fiber materials, have had a low load, and the demand from end enterprises is weak. The digestion speed of non-woven fabric end products is average, and the enterprise’s replenishment operation for fiber PP is not strong. It is expected that the consolidation operation will remain volatile in the short term.

In terms of melt blown materials, the recent melt blown PP market has shown a significant decline. As of March 31st, the average quotation of domestic melt blown material sample enterprises monitored by the Business Society is around 8600 yuan/ton. Compared with the average price level at the beginning of the month, the price has increased by -9.79%, and decreased by -16.37% compared to the same period last year. At present, the social consumption of medical meltblown fabric materials is weak, and towards the end of the month, the meltblown fabric has stabilized after a decline. There is no significant boost in overseas demand, and traders are taking orders at a discount, with prices mostly around 8500 yuan/ton. It is expected that the trend of melt blown materials may continue to be weak.

Future Market Forecast

PP analysts from Business Society believe that the polypropylene market has risen in a narrow range this week. The raw material propylene market rebounded after a decline, and the cost side’s support for the market is still acceptable. But the demand of terminal enterprises tends to be just enough to maintain production, and the demand release is weak. At the same time, the expected impact of production capacity landing next month on the market is evident, and it is expected that the PP market may continue to consolidate and operate in the short term.

According to the monitoring of the Business News Agency, the overall price of domestic sodium metabisulfite in March was slightly stronger, with the average price of industrial grade sodium metabisulfite being 2400.00 yuan/ton on March 1 and 2416.67 yuan/ton on March 31, a slight increase of 0.69% during the month.

In early March, the overall increase in domestic soda ash prices remained stable, while sulfur prices continued to rise. Supported by the continued upward trend in raw material costs, manufacturers again slightly increased the ex-factory price of sodium metabisulfite, driving the domestic market price of sodium metabisulfite to operate slightly stronger at the beginning of the month. In mid March, the price of soda ash fell slightly, while the price of sulfur decreased slightly after stabilizing. The overall price of upstream raw materials rose and fell. The downstream procurement of sodium metabisulfite was more cautious, and the cost rose and fell slightly. The domestic market price of sodium metabisulfite remained stable and advanced.

In March, the domestic soda ash price was slightly weak, with a slight decrease of 0.72% in the month. The sulfur price rose first and then fell, and fluctuated and fell by 3.85% in the month. After the upward trend of upstream raw material prices stabilized, they fell slightly. The cost will form a certain pressure on the domestic sodium pyrosulfite market price in April.

Aftermarket Forecast

Analysts from the Business News Agency believe that the upstream raw material cost has risen and fallen, while the downstream trading entities have increased their wait-and-see attitude. It is expected that the domestic sodium metabisulfite market price in April will follow a small decline in raw material cost, and the overall price will fluctuate after a small decline.