SunSirs: Mineral Oil Market Prices steadily Increased in China in April

According to the Commodity Market Analysis System of SunSirs, as of April 26th, the average price of mineral oil in the market was 8,500 RMB/ton, and on April 1st, the average price of mineral oil in the market was 8,400 RMB/ton, an increase of 1.19% compared to the beginning of last month.

In mid to early April, international oil prices continued to rise and continued to decline until late April. The slight decline in the crude oil market is mainly due to the flattening of conflict risk premiums. On the one hand, the risk of conflict in the Middle East region has decreased, and the market expects that the possibility of US sanctions on Iran's oil exports escalating has also decreased. As the market's concerns slow down, the positive international oil supply has dissipated, to some extent smoothing out the risk premium of crude oil. On the other hand, the signals released by the Federal Reserve to the market have raised concerns among investors that the interest rate cut cycle may not come so quickly. As a result, the international oil price trend has declined. International crude oil prices have fallen from high levels, weakening cost support.

The production of the equipment is basically stable, and Shenmu will resume production in mid April. It is estimated that the market supply will remain relatively stable. The market supply remains tight, and prices are firm. Currently, downstream refineries have meager profits and limited acceptance capacity, with market transactions mainly based on demand. From the perspective of demand, downstream demand for replenishment is expected to be acceptable, while in the short term, the market is mainly focused on selling at high prices.

It is expected that after the price increase in the first half of April, downstream wait-and-see sentiment will become more intense, and downstream market demand will still be mainly for rigid procurement. It is expected that some model prices will decline by the end of April.

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