In H1, 2021, China’s cracking C5 market prices increased notably supported by higher cost and strong demand. In the second half of 2021, Zhejiang Petrochemical phase II units will go into operation, and the regular maintenance will mount down. It is predicted that the increase in China’s cracking C5 market will gradually slow down.
C5 Industrial Chain Performed Well
In the first half of 2021, the market prices of C5 upstream products and downstream products showed an uptrend. The prices of feedstock crude oil and naphtha rose notably, giving support to the C5 market. The prices of C% downstream products trended up to different extents, and those of isoprene and fine C5 increased obviously. The C5 demand from the chemical industry improved greatly, supporting the C5 market.
In the first half of 2021, China’s cracking C5 prices averaged RMB 4,522/mt, up 28.26% Y-O-Y. Therein, the highest price was RMB 4,873/mt, and the lowest one was RMB 3,900/mt. China’s cracking C5 prices trended up supported by crude oil market and demand release.
From January to March, China’s cracking C5 prices continued to rise. The international crude oil prices fluctuated upward, and the feedstock naphtha prices also remained in an uptrend. In March, Sinopec Maoming Company and Sinopec Yanshan Petrochemical took overhauls, resulting in tight supply and low inventory. Besides, the prices of downstream product pentadiene and raffinate C5 both increased, supporting the C5 market. From April to May, China’s cracking C5 prices stayed range-bound. Although the international crude oil market fluctuated upward, few plants remained offline for maintenance, easing the limited supply. The prices of downstream products slipped, but the ex-works prices of cracking C5 were largely stable. In June, China’s cracking C5 prices trended down. The international crude oil prices fluctuated upward, but some units resumed normal operation, pushing market supply to grow. The prices of downstream products fell by over RMB 1,000/mt, and the profits at separating enterprises dropped greatly, weighing down the C5 ex-works prices.
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