Influenced by geopolitical factors, China’s chemical products market is again stuck in a stalemate

The recent increase in international oil prices has been maintained, but it has more to do with geopolitical factors rather than actual demand growth. There is still a lot of uncertainty in the current economic depth. The domestic policy on real estate control has continued and the capital chain has not yet been effectively mitigated. Taking a look at the domestic oil price and chemical products market, the majority of transactions have shown a stalemate.

In terms of basic chemicals, ethylene continues to be supported by crude oil and prices remain high. Propylene is expected to stop falling in the latter part of this period, but whether it can rebound effectively requires further support from demand. With the continuous adjustment of prices in the previous period, the prices of naphtha and butadiene have been at a high level. Under the flat deal, short-term or hard-to-find performance is difficult. Aromatic products in the oil price and external disk boost, the domestic attitude of the holders of goods can be acceptable, although the low price of goods is difficult, but unfortunately the demand for a bearish atmosphere still exists, the overall more than maintain the consolidation operation. Others, such as intermediates, acid esters, plasticizers, and organic alcohols, continue their weak stalemate.

With regard to the future financial situation, many people said that even if the interest rate on funds after the implementation of the downgrade drops significantly, it is expected to be difficult to last. In the medium term, market liquidity may continue to remain tightly balanced. The procurement enthusiasm in the chemical commodity market has not been significantly improved. With March approaching, people are more concerned about changes in downstream demand. It is recommended to wait and see for the moment.

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