SunSirs: Flexible Adjustment of Chlorinated Paraffin Against Sudden Increase in Cost Pressure (December 9-18)

Price trend

According to the data of SunSirs, the average ex factory price of domestic grade-I chlorinated paraffin 52 was 5,066 RMB/ton on December 9, and the average ex factory price of domestic grade-I chlorinated paraffin 52 was 5,133 RMB/ton on December 18, with a price increase of 1.32%. Up to now, the commodity index of chlorinated paraffin on December 18 is 76.43, unchanged from the previous day, 30.16% lower than the highest point of 109.43 (2013-12-03), and 19.70% higher than the lowest point of 63.85 on September 26, 2016. (Note: cycle refers to 2012-06-01 to now)

Analysis review        

Product: At present, the operating level of chlorinated paraffin is low. The ex factory price of grade I chlorinated paraffin 52 in South China is 4,600-5,500 RMB/ton, the ex factory price of grade I chlorinated paraffin 52 in North China is 4,600-5,500 RMB/ton, the ex factory price of grade I chlorinated paraffin 52 in East China is 5,200 RMB/ton, the ex factory price of grade I chlorinated paraffin 52 in Central China is 4,700-5,500 RMB/ton, and the ex factory price of grade I chlorinated paraffin 52 in Northeast China is 4,700-5,500 RMB/ton. The ex factory quotation of grade I chlorinated paraffin 52 in Shandong Province is about 4,800-5,500 RMB/ton. The ex factory quotation of grade I chlorinated paraffin 52 in Northwest China is about 4,800-5,500 RMB/ton.

Crude oil: WTI's January 2020 futures fell $0.01/barrel to $ 60.93/barrel on Wednesday (December 18), while Brent's February 2020 futures rose $0.07/barrel at $66.17. The main contract for China's SC crude oil futures 2002 rose 2.6 to 474.8 RMB/barrel.

Industrial chain: The market price of raw material liquid wax is stable, the current trend is temporarily stable, the manufacturer is stable in shipment, and the market fluctuation is not big. Recently, the market price of liquid chlorine has been raised, and the market in some regions has been significantly raised. Due to the increase of cost and the pressure of downstream enterprises, chlorinated paraffin manufacturers began to adjust flexibly.

Industry: According to the price monitoring of SunSirs, in the 49th week of 2019 (12.9-12.13), there were 24 kinds of commodities rising month on month in the list of commodity prices rising and falling, including 4 kinds of commodities with an increase of more than 5%, accounting for 4.7% of the number of commodities monitored in the chemical sector; the top three commodities were glycol (17.59%), crude benzene (7.07%) and aniline (6.81%).There were a total of 28 kinds of commodities that fell month-on-month, and 1 kind of commodities that fell by more than 5%, accounting for 1.2% of the number of commodities monitored in this sector; the top 3 products were hydrochloric acid (-6.41%), chloroform (-4.55 %), Bisphenol A (-3.62%). This week's average increase or decrease was 0.07%.

Market outlook

Analysts of Chlorinated Paraffin of SunSirs believe that the current domestic price of chlorinated paraffin raw materials is rising, and manufacturers are under increased pressure on costs. Downstream demand is not good and the overall operating rate is low. It is expected that the chlorinated paraffin market is in the finishing stage in the later period, and manufacturers will mainly adjust small fluctuations within the flexible range.

If you have any questions, please feel free to contact SunSirs with marketing@sunsirs.com.