Market Overview: According to the bulk list data of Business Society, as of November 3, 2023, the reference price of diethylene glycol in the domestic market was 5283.33 yuan/ton, a decrease of 190 yuan/ton or 3.47% compared to October 27, 2023 (reference price of diethylene glycol was 5473.33 yuan/ton).

This week’s market situation: The focus of the domestic diethylene glycol market has declined this week (10.28-11.3). During the week, international crude oil was first strong and then weak, and the cost side still provided some support to the market. Ports were still congested, with only some deliveries last weekend. After that, inventory at the main port continued to decline, and the shipment volume at the port this week slightly decreased. The operator’s mentality was average, lacking positive support, and the market adjusted to be weak. As of the close of Thursday, the spot price in the East China market closed at 5260-5270 yuan/ton.

Future forecast: Currently, international crude oil prices are unstable and lack substantial driving force. The fundamentals of diethylene glycol are not under pressure, and the market continues to operate in a weak state. The mentality of the industry is lower, and downstream demand is mainly in demand. The traditional peak season has passed, and it is difficult to have a centralized stock situation. Diethylene glycol analysts from the business company believe that the short-term domestic diethylene glycol market is still dominated by weak adjustments.

1、 Price trend

According to the Commodity Market Analysis System of the Business Society, the price of aniline has slightly increased this week. On October 30th, the market price of aniline was 11525 yuan/ton, and on November 3rd, it was 11800 yuan/ton, an increase of 2.38% compared to last week.

2、 Analysis and Review

Nitric acid: Domestic nitric acid prices have slightly decreased this week. The price was 2116 yuan/ton on October 30th and 2083 yuan/ton on November 3rd, a decrease of 2.34% compared to last week and 11.96% compared to the same period last year.

3、 Future expectations

The shipment of aniline factory is smooth, with some factories undergoing maintenance. The spot sales of aniline have decreased, and the supply is tight. It is expected that the inventory of aniline will increase.

According to the Commodity Analysis System of Business Society, as of October 30th, the mainstream factory price of domestic refined and hydrogenated naphtha was 7881.50 yuan/ton, a decrease of 4.69% from 8269.00 yuan/ton at the beginning of this month, and the market for refined and hydrogenated naphtha continued to decline.

As of October 30th, the mainstream factory average price of locally refined straight-run naphtha in China was 7784.00 yuan/ton, a decrease of 4.95% from 8189.00 yuan/ton at the beginning of this month, and the market for locally refined straight-run naphtha continued to decline.

Product: In October, the price of refined naphtha continued to decline. Currently, the mainstream price of refined and hydrogenated naphtha is around 7700-7900 yuan/ton, while the mainstream price of straight run naphtha is around 7650-7850 yuan/ton. The gasoline and diesel market has entered the off-season, with the main focus on procurement in the restructuring process. A small amount of demand for ethylene cracking has been released, and there is a lack of substantial improvement in fundamentals. The overall demand for naphtha terminals is weak, with sluggish trading and refineries reducing prices for shipments.

Upstream: The crude oil market continued to fluctuate in October. At the beginning of the month, the situation on the mainland is volatile, and oil prices may intensify volatility, with an increase in amplitude. The mid-term supply-demand game will continue, with tight supply and slowing demand remaining the main themes of oil price trading. The weekly inventory report released by the US Energy Information Administration (EIA) in mid month showed that US crude oil inventories unexpectedly dropped significantly last week, with a more than expected decrease. Coupled with tensions in the Middle East, this has brought a bullish trend to the crude oil market, with prices hitting nearly two week highs. With the strengthening of diplomatic efforts and the easing of tensions between Palestine and Israel, the market has shown some optimism about supply restrictions, and the oil market has come under pressure and declined. Overall, crude oil prices are still at a high level.

Downstream: The toluene market fell significantly in October. On October 1st, the benchmark price of toluene was 8210 yuan/ton, while on October 27th, the benchmark price was 6960 yuan/ton, a decrease of 15.23% compared to the beginning of the month. The mixed xylene market significantly declined in October. On October 30th, the benchmark price of mixed xylene was 7330 yuan/ton, a decrease of 13.66% from 8490 yuan/ton at the beginning of the month. In October, the price trend of paraxylene decreased. As of the end of the month, the domestic factory price of paraxylene was 8700 yuan/ton, a decrease of 8.42% compared to the initial price of 9500 yuan/ton, and a year-on-year decrease of 6.45%.

Energy analysts from Business Society believe that the international crude oil market is fluctuating and declining, with limited cost support for the naphtha market. The gasoline and diesel market has entered the off-season, and there is no significant benefit for the local refining naphtha terminal. Market trading is cautious, and it is expected that the local refining naphtha market will be mainly volatile in the near future.

Price trend chart of sodium pyrosulfite in China

According to the Commodity Market Analysis System of Business Society, the price of domestic sodium metabisulfite was weak and downward in October. The average price of industrial grade sodium metabisulfite on October 1st was 2683.33 yuan/ton, and on October 31st it was 2450.00 yuan/ton, a decrease of 8.70% during the month.

In October, the prices of domestic soda ash and sulfur have significantly decreased, and under the low cost system, manufacturers have successively lowered the factory price of sodium metabisulfite. The domestic market price of sodium metabisulfite continues to be weak and downward.

The raw material cost continues to be weak, downstream trading entities have increased their wait-and-see attitude, and market trading has become more light. Under the dual pressure of cost and demand, the domestic market price of sodium metabisulfite continues to be weak and downward during the month.

In October, the prices of domestic soda ash and sulfur decreased comprehensively, with soda ash prices falling by 18.77% and sulfur prices falling by 7.87%. The continued weakness of raw material costs will further suppress the market price of sodium metabisulfite in the future.

Future Market Forecast

Analysts from Business Society believe that raw material costs continue to decline, and downstream demand is cautious. It is expected that the domestic sodium metabisulfite market price will continue to operate under pressure in November.