SunSirs: China Naphtha MarketSurged in January

According to the latest monitoring data of SunSirs, as of January 31, the mainstream ex-factory average price of domestic local naphtha was 5,550.00 RMB/ ton, up 0.82% compared with 5,505.00 RMB/ ton at the beginning of the month, and the price of local naphtha rose in a volatile manner in January.

On January 31, the naphtha commodity index was 68.50, unchanged from the previous day, down 33.25% from 102.62 (2012-09-24), the highest point in the cycle, and up 62.17% from 42.24, the lowest point on July 19, 2016. (Note: period refers to from September 1, 2012 to now)

In January, the price of naphtha from local refineries fluctuated and rose. At present, the mainstream price of hydrogenated naphtha is about 5,500-5,600 RMB/ ton. Previously, refineries have been active in shipping, mainly in destocking. In January, Asian demand for a range of petroleum products, such as naphtha, gasoline, aviation fuel and fuel oil, increased. Gasoline prices in Asia have declined recently due to concerns about the negative impact of the epidemic related control measures.

Industry: according to the price monitoring of SunSirs, in the list of commodity price rise and fall in the 4th week of 2021 (1.25-1.29), there were 5 kinds of commodities in the energy sector, including 1 kind of commodities with an increase of more than 5%, accounting for 6.3% of the number of commodities monitored in the sector; the top 3 commodities with an increase were LNG (11.38%), coke (3.91%) and LPG (2.06%). There were 9 kinds of commodities that declined on a month on month basis, and 1 kind of commodities with a decline of more than 5%, accounting for 6.3% of the number of commodities monitored in the sector; the top 3 products with a decline were thrmal coal (-12.77%), DME (-2.30%) and petroleum coke (-2.25%). The average rise and fall last week was -0.19%.

SunSirs energy analysts believe that the sharp rise in international crude oil prices has driven the energy market, but recently, affected by the epidemic situation and logistics constraints, the destocking of naphtha from local refineries has been blocked, the downstream has been waiting to see, and just needs to purchase. It is expected that the price of naphtha from local refineries will be high in February in China, with the average price range of 5,400-5,700 RMB/ ton.

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