The analysis of the trend for main raw material of PowderCoatings

2020-04-24

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: Affected by the international pandemic, the sharp increase in U.S. crude oil inventories, coupled with the tension between the United States and Iran, has led to a drop in international crude oil prices, and PTA prices have also fallen sharply. As the market demand of downstream customers is not favorable, PTA is expected to show a downward trend in the short term under the pressure of supply and demand. Affected by the decline in NPG upstream raw material prices and the lack of demand in the downstream market, NPG is expected to fall slightly in the short term.

Supply and demand: Affected by the pandemic, downstream customers’ market demand was flat, export orders weakened, and the current polyester load factor was 88.94%.

ECOSEA prediction: The price of ‘Polyester resin’ is expected to be stable in the end of April and the beginning of May,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: This week, the epichlorohydrin market fell first and then rose. Downstream customers mainly replenish according to demand, and the market trading atmosphere is relatively calm. As of this Thursday's close, the mainstream reference negotiations in the East China market were delivered at 9500-9600 yuan / ton acceptance, the Huangshan market mainstream reference negotiations were at 9500 yuan / ton acceptance, and the mainstream reference negotiations in Shandong area were closed at 9200-9300 yuan / ton. It is expected that epichlorohydrin will rise slightly in the short term.

This week, the domestic bisphenol A market price is operating at a low level. Some domestic bisphenol A factories mainly focus on delivery orders. As of Thursday afternoon, the East China bisphenol A market closed at 8,500 yuan / ton, and the price of bisphenol A is expected to decrease slightly in the short term.

Supply and demand: Affected by the pandemic, the demand of downstream end customers is mainly rigid demand, export orders are weakened, and the operating rate of solid manufacturers is about 78%.

ECOSEA prediction: The price of ‘Epoxy resin’ is expected to drop slightly in the end of April and the beginning of May,2020.

3. Titanium dioxide 

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

The graph of the sulfur commodity 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: New orders for titanium concentrates in the Panxi region decreased, most of the mining enterprises have already put into production, the supply inventory of titanium concentrates has increased, but the overall downstream demand is weak. The supply of imported titanium ore is tight, the epidemic situation affects, the output of overseas titanium ore is affected, the price remains high, but the price of domestic titanium concentrate will remain stable in the near future. The domestic sulfuric acid market prices flexibly moved up and down. Among them, a major ore acid enterprise in Laiwu, Shandong, started construction to ease some of the tight supply situation. The prices of individual smelted acids fell by 20 yuan / ton within a narrow range. Fujian's main acid company plans to shut down for maintenance, and the start-up load is reduced. The acid price in Anhui increased by a narrow range of 20 yuan / ton, the inventory of acid enterprises in Gansu decreased, and the acid price rose by 30 yuan / ton. The acid enterprises in Guangdong flexibly increased or decreased by 10-20 yuan / ton according to their own shipments. The demand for phosphate fertilizer is relatively weak, and the domestic average price of 98% sulfuric acid mainstream negotiation is around 129.79 yuan / ton. The domestic sulfur market continues to decline, and downstream factories are not proactive in purchasing. lThe port inventory maintains a high level, and the refineries in various regions in China make adjustments based on their own shipments and inventories. The refineries in Shandong, East and North China have basically stabilized, and some refineries have been adjusted within a narrow range. It has dropped by 10-50 yuan / ton. As of now, the average price of domestic sulphur has reached 518.13 yuan / ton, which is expected to fall slightly in the short term.

Supply and demand: The overall operation of the manufacturer is stable, the market supply is sufficient, due to the epidemic situation, the cancellation of export orders is delayed, the factory inventory is high, and the export orders are transferred to domestic sales, but the downstream demand is flat.

ECOSEA prediction: The price of ‘Titanium dioxide’ is expected to drop slightly in the end of April and the beginning of May,2020.

4.TGIC Curing Agent 

Raw material: Recently, with the upstream raw materials of epichlorohydrin rising, the price of epichlorohydrin has maintained a steady upward trend. Most epichlorohydrin plants have been operating steadily, and maintenance companies have returned to normal. With the replenishment in the downstream market, manufacturers' inventories have significantly decreased, and low-priced spot in the market has decreased significantly. Shandong Haili still maintains the parking state. Jiangsu Haixing expects to restart the device at the end of this month or early May. Due to environmental protection and some national policy factors, some TGIC factories are in a state of suspension.

Supply and demand: Recently, downstream demand has increased, and factories are operating at full capacity. Some factories have stopped accepting new orders.

ECOSEA prediction: The price of ‘TGIC curing agent’ is expected to increase slightly in the end of April and the beginning of May,2020.

1. HAA curing agent

    

   Raw material: Recently, the DEA diethanolamine market has been affected by tight supply factors, and prices have increased slightly. Domestic production plant Silbang is operating normally, and spot supply is somewhat tight. However, as imported goods arrive in Hong Kong, market supply will ease. The production plant in Silbon is overloaded, the Jinyan plant is stopped, the Xianshuo plant is running at half load, and Aksu and Yamba are overhauled. It is expected that diethanolamine will be mainly stabilized in the short term. The downstream demand of DMA dimethyl adipate in the downstream market is relatively flat, and the market price has fallen slightly. The load on the production plant has stabilized.

   Supply and demand: Affected by the epidemic, downstream demand is relatively dull, mainly based on rigid demand.

   ECOSEA prediction: The price of ‘HAA curing agent’ is expected to be stable or drop slightly in the end of April and the beginning of May,2020.