Industrial naphthalene is expected to return to a stable structure

China Drying Network News In October, the domestic industrial naphthalene market went down all the way, and the domestic mainstream transaction price fell from 6,300 yuan (t price, the same below) at the beginning of the month to 5,000 yuan at the end of the month, and the monthly decline was more than 20%, setting a monthly decline since the beginning of the year. The most. However, in November, the market revolved and began to rebound. As of November 10, the domestic mainstream transaction price rose to about 5,400 yuan, or 8% in the short-term. The reason is that the price of raw materials is tight, the supply of raw materials is greatly reduced, the downstream market is picking up, and other aspects have formed comprehensive benefits. At the same time, the continued decline in import volume has also played a certain role in promoting the market to stop rebounding. Under the background that the market is going into the off-season, the winter sunshine is ushered in. It is expected that the market will return to a stable consolidation pattern after the favorable factors are released.

The price of raw materials was tightened In early November, coking companies in various parts of the country further restricted production. The output of high-temperature coal tars decreased, which restricted the procurement of raw materials by deep-processing companies. Some areas such as Hebei and Shanxi began to expand slightly. Because the previous round of high-temperature coal tar continued to decline in prices, especially in the northern region, the price dropped back to about 2,400 yuan, a large number of low-cost sources were digested, coking companies can continue to reduce the supply of sources, once the formation of a price-free market situation. Since November, due to the continuing high price of carbon black oil, carbon black companies have centralized procurement of high-temperature coal tar with a low price range, which has formed a high price of high-temperature coal tar and has formed a cost support for the industrial naphthalene market.

The source of supply fell sharply. Not only did the upstream coking enterprises limit production, but some deep-processing coal tar companies in Shandong, Hebei and other places also began to cut production significantly. The low-end prices rose quickly, driving the surrounding areas to start to pick up mildly. In addition, transportation of hazardous chemicals was restricted in many areas, and some companies appeared to bypass the road to purchase goods, which increased transportation costs and reduced the market circulation of industrial naphthalene, especially in the surrounding areas of Beijing. In the context of increasing costs and tight supply of industrial naphthalene, the inflationary atmosphere continues to increase, which is one of the main reasons for the rapid rise in the market in the short term.

The downstream market is picking up The downstream naphthalene-based water-reducing agent companies have already started construction at a low load. Due to the 18th-largest cause, sulfuric acid was limited compared to previous years, resulting in a further decline in the production of water-reducing agent and a slight increase in the market. Others such as refined naphthalene, 2-naphthol and other prices have risen to varying degrees. In order to ensure stable production during the meeting, industrial naphthalene downstream companies have already started a wave of pre-stocking process at the end of October, resulting in a sudden increase in market orders and a relatively tight supply in the short-term, which has played a catalytic role in the rebound of the market.

In addition, the reporter learned from a number of import and export companies that the domestic inventory of low-priced industrial naphthalene sources has been continuously digested. According to statistics, the import volume in September fell by 5.14% month-on-month, and continued to decline. It also formed another support factor for the domestic market.

According to industry analysts, the short-term favorableness of the industrial naphthalene upstream and downstream markets is the main driving force for the formation of the recent stop-and-rebound rally. Combining the current market conditions, the main feature of the market rebound is that the price of deflation increases, and its space is bound to be limited. With the winter season, the downstream demand has gradually entered the off-season, and companies have started to resume work, and it is not ruled out that there is still the possibility of another shock. However, due to the early release of negative kinetic energy is relatively sufficient, there will be no major shocks again to adjust the phenomenon, is expected to form a narrow trend of finishing.

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