The analysis of the trend for main raw material of PowderCoatings

2020-01-17

1. Polyester Resin 

PTA and NPG ------the two main raw materials of Polyester Resin, the market price of PTA was generally decreasing,and NPG ( Shandong) was overall stable but showing a downward trend. The charts are as follows.

Raw material: Since the signing of the first phase of the trade agreement between China and the United States, international crude oil has rebounded slightly recently, causing PTA prices to rise slightly. As the Spring Festival holiday is approaching, downstream factories have been shut down into the holiday time, PTA market transactions have declined, and it is expected that under the pressure of supply and demand, PTA will mainly maintain stability. Small and medium-sized customers have successively entered the holiday state, the operating rate has dropped, and the inventory for the holiday has been prepared in the early stage. In addition, road transportation and factory shipments before the Spring Festival holiday are also subject to certain restrictions, NPG market transactions have weakened significantly, it is expected that NPG will maintain stability in the short term.

Supply and demand: With the approaching of the Spring Festival holiday, the demand of downstream customers weakened, and the current polyester construction load factor was 75.12%.

ECOSEA prediction: The price of ‘Polyester resin’ is expected to stay stable in the end of January and the beginning of February,2020.

2. Epoxy Resin 

‘Cyclochlorine’ and ‘Bisphenol A’ ------ the two main raw materials of Epoxy resin and the market price charts are as follows.

Raw material: The epichlorohydrin market has fluctuated slightly recently, and new orders in the market have decreased. Most of the deliveries are stock orders from previous years. The production of the manufacturers is relatively stable, and the downstream solid resin factories are partly suspended. The liquid factories are mainly stabilized, and the downstream demand is significantly weakened. In addition, the long-distance logistics transportation before the holiday is gradually restricted, and it cannot be shipped normally. There is less stock in the market. As of the close of this Thursday, the mainstream reference in the East China market is negotiated at 13500-13900 yuan / ton acceptance. The mainstream reference negotiation in Shandong market is 13,300-13500 yuan / ton acceptance; the mainstream reference negotiation in Huangshan market is 13,500-13900 yuan / ton acceptance, and it is expected that epichlorohydrin will stabilize or rise slightly in the short term.

This week, the domestic bisphenol A market mainly operates at a high level. As of the close of this Thursday afternoon, the East China bisphenol A market consulted and negotiated 10900-10950 yuan / ton. As the Spring Festival holiday is approaching, spot transactions are relatively flat. In the first quarter, there is an expected maintenance plan for the bisphenol A plant in some factories, and the price of bisphenol A is expected to stabilize or rise slightly in the short term.

Supply and demand: Downstream customer demand was flat before the Spring Festival holiday, and the operating rate of solid manufacturers was about 40%.

ECOSEA prediction: The price of ‘Epoxy resin’ is expected to be stable or increase slightly in the end of January and the beginning of February,2020.

3. Titanium dioxide 

The commodities index of Titanium concentrate in the past three months is as follows:

The graph of the Titanium concentrate index in the past three months is as follows:

The trend of commodity index of sulfuric acid in the past three months is as follows:

  Raw material: Towards the end of the year, the price of titanium concentrate is relatively stable, the downstream customers have more stocks, and the supply of titanium ore is tight. Some companies temporarily stopped quoting, and the price was raised by 50 yuan / ton in January. The price of titanium ore before the festival was mainly a steady wait-and-see. This week, many regions of the domestic sulfuric acid market showed a steady and steady decline. Among them, the inventory pressure of the main acid plant in western Shandong province eased, and the acid price was raised by 20 yuan / ton within a narrow range. Sulphuric acid is affected by the overhaul of individual factories, local acid companies ship better, and individual factories rose slightly. However, the insufficient demand in Guangdong, coupled with the influx of low-priced acid products from Guangxi and Hunan, has lowered the price of mineral acid by 10-20 yuan / ton. The inventory of acid companies in Henan has improved slightly. Most of the acid companies are mainly stable. The sulfuric acid market in other regions is mainly weak. Up to now, the average domestic negotiating price of 98% sulfuric acid is around 145.45 yuan / ton. The domestic sulfur market performed calmly, and the downstream factories' purchasing enthusiasm weakened. This week, refineries in various regions of the country mainly focused on maintaining low inventory and smooth shipments. The prices of refineries in some regions continued to fall, with a decrease of 20-60 yuan / ton. Some refineries are still dominated by stable prices, so far the average price of domestic sulphur has dropped to 460.73 yuan / ton. l From the perspective of supply and demand performance, refineries in various regions of China maintain low inventory and shipments mainly before the Spring Festival.

Supply and demand: The overall start-up load in the downstream market before the Spring Festival is not high, the market replenishment demand has become dull, the export market demand is relatively stable, and the overall titanium dioxide market inventory is low.

ECOSEA prediction: The price of ‘Titanium dioxide’ is expected to be stable or increase slightly in the end of January and the beginning of February,2020.

4.TGIC Curing Agent 

Raw material: The price of epichlorohydrin increased slightly from the end of December to the beginning of January. From last week, prices slowly fell slightly and most of the epichlorohydrin plant installations have higher operating loads this week. While Jiangsu Yangnong and Hengyang Jiantao are said to have information on the reduction of the device load, Shandong Xinyue device also has a plan to temporarily stop. Shandong Haili's cyclic chlorine plant is temporarily restarted and start time to be determined. Factory inventory is low, downstream demand is flat, and manufacturers have no shipping pressure for the time being. Near the early period of the Spring Festival, the logistics transportation was suspended, some TGIC factories' production capacity was limited, and the factory's operating load was reduced. Only a few factories maintained normal production capacity. As the demand for TGIC downstream customers is relatively dull before the year, and there is less stock on the market, the demand of some customers in East China and North China is also relatively dull, and the prices are relatively stable.

Supply and demand: In the early Spring Festival, logistics transportation was suspended, downstream customers 'demand was dull, and manufacturers' inventory was low.

ECOSEA prediction: The price of ‘TGIC curing agent’ is expected to be stable in the end of January and the beginning of February,2020.

5.HAA curing agent

Raw material: The DEA diethanolamine market has recently maintained a stable and stable operation, and the market has fewer sources. In the early period, some imported goods arrived in Hong Kong, and the market price was slightly loosened. At present, most of the downstream are mainly wait and see, the willingness to follow up is also relatively low, and the actual transaction orders are few. However, after the production of a few major factories resumed, they were shipped one after another. Some domestic factories have normal loads and stable operation. However, before the Spring Festival holiday, the shutdown of transportation logistics, the downstream demand is relatively dull, and upstream manufacturers have also stopped quotation and shipment, and it is expected that diethanolamine will mainly maintain stability in the short term. Due to the fluctuation of the crude oil market, the price of DMA dimethyl adipate has increased slightly, but the demand for replenishment in the downstream market has weakened before the Spring Festival holiday. The DMA price is mainly stable in the short term.

Supply and demand: Before the Spring Festival holiday, the downstream customers have completed the stock preparation. Recently, the market has been flat and the overall market demand has weakened.

ECOSEA prediction: The price of ‘HAA curing agent’ is expected to be stable in the end of January and the beginning of February,2020.