Down In the Off Season, Chinese Ethylene Carbonate Runs Sluggishly

The manufacturer's offers for Ethylene Carbonate remained unchanged in the third week of January, with only a minor shift in the pricing trajectory. Speculation around Chinese New Year revealed certain infrastructure issues due to service delays and excessive inventory levels. As a result of the ripple effect, the FOB Qingdao discussions for demand of Ethylene Carbonate fell to USD 2460 per tonne for the week ending January 21.

The Chinese New Year is usually celebrated for a week or occasionally longer, and it brings with it a period of low demand that has a negative impact on worldwide markets. When the typical speed of business slows and daily trade volume falls, prices become erratic. This year Lunar New Year is scheduled to be celebrated on the 1st of February.

Because the market is weak, the prices of the raw material Ethylene Oxide has remained stable. While the cost assistance remained relatively generous. This trend has persisted in the EO market since the Chinese government's efforts to ease power rationing in China. The current cost support is limited, coupled with the lack of demand, thereby keeping the market sentiment dull.

Downstream Lithium-ion batteries have also stabilised this week. However, due to strong demand from battery manufacturers, Lithium Carbonate prices in China reached record high in December. The Ethylene Carbonate market is expected to be weakly consolidated in the short term.

According to ChemAnalyst, the market players in the Chinese domestic market are concerned about the long-term closure of the production facility due to the upcoming holidays next month and the Winter Olympics. As a result, it is expected that the offtakes will increase before the end of January, while the prices may increase significantly.

 

Comments

Post a Comment

Popular posts from this blog

Global Poly Vinyl Chloride sentiment shivers on growing demand concerns

Image
Poly Vinyl Chloride sentiment has recently showcased mixed sentiments across global markets due to growing demand amid many factors that weigh on consumption in the month of April. The world’s largest PVC producer, China, has been partly experiencing pressure as the resurgence of Covid has hit demand for Poly Vinyl Chloride . Additionally, import offers in Turkey and Egypt markets have already seen a downward trend for the product. China’s domestic PVC market reflected weak demand conditions amid the extended lockdowns in Shanghai as prices softened this week. Manufacturers indulged in procuring stable offtakes in the domestic market as delays in export activity due to a shortage of containers for shipment led to a reduction in prices of several commodities, such as PVC. The activity was limited as players had put up a wait-and-see attitude before the announcement next week. The European Spot PVC market showcased a high price trend in comparison to other regions amid ongoing geopolit...
Read more

Acrylonitrile market follows divergent trends across the globe

Image
The market for Acrylonitrile has been depicting contrasting trends at different latitudes on account of distinct upstream cost and downstream demand in different territories. Acrylonitrile, produced from ammoxidation of propylene, is the upstream for ABS and Acrylic fibres. Hence, the fluctuations in the demand or prices of propylene and ABS majorly influence the market for Acrylonitrile. The Asian countries are witnessing a complete turnaround of Acrylonitrile prices from the other parts of the world, making them an exception. In Asian countries, the price of Acrylonitrile is falling, owing to the ample supply of upstream propylene. The stable to marginally lower demand for Acrylonitrile Butadiene Styrene (ABS) has also supported the price drop of Acrylonitrile in Asia. The numerical data from the continuing week confirmed the reports about this price dip. The evaluated price value implied a decrement of USD 5/MT from Monday to Tuesday in the ongoing week at FOB Korea and CFR China...
Read more

Agilyx Partners with Kumho Petrochemical on Chemical Recycling Plant in South Korea

Image
 Agilyx Corp. which is a major plastic recycling company in the United States, has announced a partnership with Kumho Petrochemical which is a manufacturer of synthetic rubber in South korea to develop and construct a chemical recycling facility in South Korea. The project will be using Agilyx’s unique and novel chemical recycling technology for the production of pure Styrene from post use Polystyrene price . The Styrene obtained from recycling will be used as virgin equivalent raw material to produce Solution Styrene Butadiene Rubber (SSBR) which is a major component for manufacturing tires. The project would include a new application for Agilyx’s  Polystyrene market demand price   depolymerization technology which is introduction of a new pathway for converting Polystyrene into SSBR. Agilyx is an early market leader in the advanced recycling of post use plastics which are difficult to recycle. Agilyx’s chemical recycling technology includes recycling of mixed plasti...
Read more