Price trend

According to the price monitoring of SunSirs, the average price of salicylic acid (industrial grade) mainstream manufacturers on July 3 was 14,666.67 RMB/ton, which was flat compared with the price at the beginning of the week, and the recent market was running smoothly.

Analysis review

This week, the salicylic acid market was stable and weak, and exports have always been poor. In addition, the domestic market has gradually entered the off-season. Some downstream enterprises have reduced load operations and the demand side was weak. At the same time, the price of raw material phenol has fallen, and the price of salicylic acid has remained stable. Some companies have made small adjustments with little change. As of July 3, Zhenjiang Maoyuan Chemical's industrial grade salicylic acid price was around 15,000 RMB/ton, pharmaceutical grade salicylic acid price was 24,000 RMB/ton, and sublimation grade salicylic acid price was 22,000 RMB/ton. Hebei Jingye Chemical's industrial grade salicylic acid price was around 14,000 RMB/ton, pharmaceutical grade salicylic acid price was 29,000 RMB/ton, and sublimation grade salicylic acid price was 20,000 RMB/ton. The industrial price of salicylic acid in Shandong Longxin was about 15,000 RMB/ton, the ex-factory price of pharmaceutical grade salicylic acid was about 25,000 RMB/ton, the ex-factory price of sublimation grade salicylic acid was about 18,000 RMB/ton, and the ex-factory price of methyl salicylate was about 24,300 RMB/ton. The actual transaction was mainly negotiation.

The upstream phenol market continued to decline. In July, the nationwide phenol factories saw the operating rate drop to 60%. In July, the Tianjin Zhongsha 350,000-ton/year phenol-ketone plant is expected to start operation on July 10, the Shanghai Xisa Chemical 400,000-ton/year phenol-ketone unit is expected to start operation in late July, Yangzhou Shiyou’s 320,000-ton/year phenol-ketone unit is expected to start operation on July 10, and Sinopec Mitsui’s 400,000-ton/year phenol-ketone unit will be shut down on June 28, and it is expected to start operation at the end of August. Therefore, in late July, the operating rate is expected to rebound, the supply is relatively sufficient, the buying side is low, the industry boom is not good, and the factory operations are also gradually declining. From the international perspective, some factories have gradually resumed work, and imports have risen steadily. SunSirs predicts that the demand side is hard to say good, and the supply side is full of bad news, the short-term downturn in the phenol market is difficult to change. It is expected that the market phenol will be 6,400-6,800 RMB/ton in July.

Market outlook

The analyst of SunSirs believes that the recent cost-end price is lower, the demand in the off-season is not good, and the trading is general. Some salicylic acid specifications are slightly lowered. It is expected that the trend of salicylic acid will continue to be weak in the short term.

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