China 2-EH Market Price Declined Notably
1. Market Price
2. Market Review
This week, China’s 2-EH prices declined notably. As of March 17, the 2-EH prices closed at RMB 12,700-12,800/mt in Jiangsu market, down RMB 1,025/mt from last week. The average price decreased by 1.26%.
From last Friday, the crude oil futures price declined notably, and the prices of China’s chemical products also dropped. This week, affected by the falling prices of crude oil and commodities, market participants started to hold a bearish sentiment. In addition, due to the limited transportation and falling operating rate of the downstream plasticizer industry, the fundamentals exerted decreasing impacts on the 2-EH price. This week, 2-EH producers continued to cut their prices, so the market price fell notably, and the overall trading atmosphere didn’t improve much.
3. Market Forecast
As for the supply, no unit maintenance or restarts will be heard next week, so the 2-EH operating rate will not change much. It’s heard that Shandong Jianlan Chemical will shut down its units at the end of the month. As for the demand, the operating rate of the downstream plasticizer industry will trend down, so the demand for 2-EH will decline. As for the cost, with the high profit of the 2-EH industry, the cost will exert few impacts on the 2-EH price. Next week, due to lacking bullish factors and the limited transportation, some producers will cut their prices to reduce the inventory. SCI reckons that the 2-EH price will be stable-to-declining next week. The price in Jiangsu market will run at RMB 12,200-12,700/mt.
All information provided by SCI is for reference only,which shall not be reproduced without permission.
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