SunSirs: The Salicylic Acid Market Was Advancing Steadily This Week (June 21-25)

Price trend

According to the price monitoring of SunSirs, on June 25, the average price of salicylic acid (industrial grade) in mainstream manufacturers was 14,250 RMB/ton, which was the same as the price at the beginning of the week, down 2.84% month-on-month, and down 2.84% year-on-year.

On June 24, the salicylic acid commodity index was 84.82, which was the same as precious day. It was 15.69% lower than the highest point in the cycle of 100.60 points (2011-09-19), and 18.75% higher than the lowest point of 71.43 points on March 29, 2016. (Note: Period refers to 2011-09-01 to present)

Analysis review

The salicylic acid market continued to be weak and stable this week, corporate quotations were basically unchanged, raw material phenol was stalemate, and cost support was acceptable, and holders had no intention of lowering the price. Affected by changes in the international situation, exports weakened and the domestic market was relatively stable. The delivery of downstream products of salicylic acid weakened slightly, but the impact was limited. Manufactures sold with the production, and the pressure was not great. As of June 25, the average price of salicylic acid (industrial grade) mainstream manufacturers was 14,250 RMB/ton, industrial-grade quotations were mostly in the range of 13,000-15,500 RMB/ton, and pharmaceutical-grade quotations were mostly in the range of 23,000-26,000 RMB/ton. The quotations of sublimation grades were mostly in the range of 17,200-20,000 RMB/ton, and the salicylic acid of various grades had not changed much.

In terms of raw materials, the domestic phenol market oscillated, and there was a slight stalemate in the market, with little change in fundamentals. The negotiation atmosphere was weak, and the holders were not willing to lower prices to ship and intended to keep the price stable. However, the terminal factories were not in good mood for replenishment, and the buying momentum was not high. The transaction was mainly based on just-needed follow-up, and the transaction was flat. SunSirs expects that the domestic phenol market would advance weakly.

Market outlook

The salicylic acid analyst of SunSirs believes that the demand has weakened, the intention of lowering price to ship raw material phenol is not strong, and the cost support is still there. Salicylic acid companies sell the products with the production, and the pressure on shipments is not large. The salicylic acid market is expected to remain stable in the short term.

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