SunSirs: Cost Reduced and Demand Was Weak, the Downward Pressure on OX Was Significant

The price of OX temporarily stabilized in March

According to the commodity market analysis system of SunSirs, as of March 12th, the price of OX was 8,100 ,, which is temporarily stable compared to the price of OX on March 1st, which was 8100 RMB/ton. In March, crude oil prices stabilized strongly, naphtha prices rose, xylene fluctuated and fell, and the cost of OX decreased; The price of PA had fluctuated and fallen, resulting in weak demand for OX and a decrease in costs. The price of OX had remained weak and stable this week.

The price of raw materials xylene fluctuated and fell

According to the xylene commodity market analysis system of SunSirs, as of March 12th, the quoted price of xylene was 7,380 RMB/ton, a decrease of 0.54% from the price of xylene on March 1st, which was 7,420 RMB/ton. In March, crude oil prices stabilized strongly, while naphtha prices fluctuated and rose. The cost of xylene supported the increase in port xylene inventories, resulting in poor demand growth for xylene. The price of xylene fluctuated and fell, while the cost of adjacent benzene supported the decrease.

The price of downstream PA fluctuated and fell

According to the market analysis system for PA products by SunSirs, as of March 12th, the quoted price for PA was 7,587.50 RMB/ton, a decrease of 1.30% from the price of 7,625 RMB/ton on March 1st. The operation of domestic PA plants was stable, with a recent operating rate of around 60%. The spot supply of PA was sufficient, and the sales situation of PA manufacturers was poor. In addition, the supply of naphthalene PA had slightly declined, which had affected the price trend of PA produced with OX method.

Market outlook

According to analysts from SunSirs, in terms of raw materials, the price of xylene had fallen, the cost of OX had decreased, downstream PA manufacturers had poor sales, the PA market had declined, and the demand for OX was poor. Overall, as costs decrease and demand weakens, the pressure on OX prices to decline is increasing. It is expected that OX prices will fluctuate slightly in the future.

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