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    Home > Coatings News > Paints and Coatings Market > The market oversupply 2016 toluene, xylene year-round no bright spot

    The market oversupply 2016 toluene, xylene year-round no bright spot

    • Last Update: 2021-01-04
    • Source: Internet
    • Author: User
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    China Coatings Online News
    in 2016, the chemical industry emerged from the gloom of 2015, the prices of most products stabilized and rebounded. In particular, butylene, acrylic, titanium white powder increased significantly, according to the HC chemical network monitoring data show that butylene at the end of December 2015 factory average price of 5526 yuan / ton, the current price is basically around 15170 yuan / ton , the increase reached 170%, acrylic at the end of December 2015 factory average price of about 5580 yuan / ton, the current price of 10566 yuan / ton, up 90%; titanium dioxide increase of more than 60%.
    in aromatic products, toluene and xylene underperformed in 2016, with volatile price movements throughout the year, with price ranges of 4500-6500 yuan/tonne. Compared with most chemicals, toluene and xylene lack bright spots throughout the year, there has been a brief rebound during the year, but none of the following.
    Toluene and xylene rebounded twice in 2016, with the domestic market rising for the first time in the second half of February-March, and after the Spring Festival, the rebound in crude oil was clear, with toluene and xylene supported at cost. In the market, the demand side slowly recovered, inventory is still at a lower level than in previous years, especially in domestic petrochemical enterprises will have 10 million tons of refined oil production and export quotas driven by positive expectations, with some first-hand in the market inquiry futures and spot activities caused by the diffusion effect, the level of negotiations quickly improved. Under the guidance of both crude oil and demand side, the market showed strong selling sentiment. However, from March to August, the main market spot, futures in the main market in East China in a high profit state, but it does not match, East China social inventory also once again exceeded 100,000 tons and once as high as more than 120,000 tons, and the subsequent arrival of goods are still in a steady stream into the market. The market is in an imbalance between supply and demand, and the adjustment period is coming.
    The second round of rebound occurred in late August-October period, "Golden nine silver ten" effect is obvious, the third quarter of domestic petrochemical enterprises concentrated production reduction, parking maintenance gradually play a positive effect; Exports to the commercial market and the return of crude oil to the adjustment range of 40-50 U.S. dollars, have also jointly promoted the market market - the market spot rose sharply at 4900 yuan / ton of activities to promote the market has been looking down on the end of August futures negotiations level also significantly improved, in the end of toluene forced the end of the market continued fermentation, in the Mid-Autumn Festival and the 11 long holiday northern folk xylene oil transfer activities, the market began to move into a demand-oriented rapid pull-up phase. Due to the civil oil transfer activities and fine chemical demand has been carried out simultaneously, especially the private oil transfer activities because of the shortage of MTBE resources in Shandong region and a large number of resources of petrochemical enterprises because of parking maintenance problems and forced to go out to the mining, local traders regret selling sentiment is strong, market enthusiasm is very good, toluene and xylene alternately up, promote each other, toluene up to 5850 yuan / ton, xylene up to 6000 yuan / ton. Up to now, the East China toluene market negotiations in 5520-5550 yuan / ton, the South China market toluene mainstream transactions in 5650-5700 yuan / ton;
    crude oil prices in 2016, the overall view of a steady rise, after a sharp bottoming in February, crude oil prices from $25 per barrel all the way up, after the June and July adjustment, the second half of the year finally stood at $50 per barrel. As of Thursday, oil prices had fallen as API crude inventories unexpectedly surged by 4.2 million barrels. U.S. WTI February crude futures closed down $0.23, or 0.43 percent, at $53.66 a barrel on Monday. Crude oil prices closed slightly higher for the fourth day in a row, their highest close since July 2, 2015, while ICE Brent February crude futures closed down $0.27, or 0.19 percent, at $56.68 a barrel.
    Although the market cost side is relatively stable, but the market is facing the problem of oversupply, the market at the beginning of the year was misguided by speculative enthusiasm and petrochemical enterprises high level of construction, together resulting in the re-emergence of domestic high inventory problems, which counterproductive on the market, and further suppressed the enthusiasm of the market. Coupled with environmental protection issues, to the weak demand, the terminal substantive consumption is slow, and social inventory high downstream business demand is limited, the real single negotiations light. In the short term, downstream paint and coatings and other industries demand into the traditional off-season, demand is difficult to boost, before the Lunar New Year, toluene, xylene is difficult to appear in the market.
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