The analysis of the trend for main raw material of PowderCoatings

2020-05-25

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: With the increase in international crude oil prices in early May and the active reduction of oil production countries to buffer market supply pressures, the demand in the crude oil market is slowly picking up, causing PTA prices to rise recently. At the same time, the market demand of downstream customers is not good. Polyester manufacturers are under pressure from rising costs, and it is expected that PTA will show a slight upward trend in the short term. After NPG's upstream raw material prices rose at the beginning of the month, prices remained relatively stable this week, and downstream market demand was flat. It is expected that NPG will remain stable in the short term.

Supply and demand: Customer demand in the downstream market is slowly picking up, export orders are weakening, and the current polyester load factor is 84.7%.

ECOSEA prediction: The price of ‘Polyester resin’ is expected to be stable or increase slightly in the end of May and the beginning of June,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 weakened recently and there is ample supply in the market. After the restart of the Jiangsu Haixing device, there is no spot to sell for the time being, and most of the downstream buying is mainly wait and see. The volume of new orders in the market weakened, mainly based on small orders that were just in demand. As of the close of this Thursday, the mainstream reference in the East China market negotiated 10400-10500 yuan / ton acceptance. The mainstream reference negotiation in Huangshan market was 10400-10500 yuan / ton acceptance; the mainstream reference negotiation in Shandong region was closed at 10100-10300 yuan / ton, and it is expected that the epichlorohydrin will show a slight downward trend in the short term.

This week, bisphenol A started relatively stable except for planned overhaul of the downstream epoxy resin and PC devices. Some factory raw materials still need to be restocked from the spot. Bisphenol A is on the rise. As of Thursday ’s close, the East China bisphenol A market closed at 9800- 9850 yuan / ton, the price of bisphenol A is expected to rise slightly in the short term.

Supply and demand: Spot transactions in the market are dominated by previous low-price orders, but high-price new orders have less transaction volume, factory cost pressure is increasing, and solid manufacturers' operating rate is 65%.

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

Raw material: The Panxi titanium ore market continued to be weak this week, the raw material market continued to be deserted, and the prices of imported titanium ore market remained stable. Affected by the epidemic situation, the output of foreign mines is insufficient, the market supply is a bit tight, foreign prices are firm, downstream demand is weak, and some domestic prices are expected to be in a weak state. This week, the domestic sulfuric acid market fell. Among them, the installations in Tai'an and Laiwu areas of Shandong started operation, and the supply in the area increased, but the demand was relatively weak, and the inventory pressure of acid companies was obvious. And the acid price is reduced by 20-30 yuan / ton with the market. Sulfuric acid was affected by the production cuts of downstream factories, and the price was narrowed by 20 yuan / ton. The construction of fertilizer plants in Northeast China declined, and prices continued to be low. Some companies flexibly lowered by 50 yuan / ton. The price of acid in Anhui and Zhejiang is stable this week. As of now, the average negotiated price of 98% domestic mainstream sulfuric acid is around 140.21 yuan / ton. This week, the focus of the domestic sulfur market negotiations is rising steadily, and the downstream factories are not very motivated. Most refineries in various regions of the country increase slightly with the market according to their own shipments, with an increase of 10-50 yuan / ton. Some refineries continue to operate at stable prices. As of now, the average price of domestic sulphur is 489.58 yuan / ton.

Supply and demand: The overall production of the manufacturers is stable, the market supply is sufficient, the factory inventory is high, the manufacturers have recently lowered prices, and the export orders are not optimistic. The overseas epidemic has also affected some downstream industries in the country, thereby further reducing the downstream demand for titanium dioxide;

ECOSEA prediction: The price of ‘Titanium dioxide’ is expected to be stable in the end of May and the beginning of June,2020.

4.TGIC Curing Agent 

Raw material: Since the beginning of this month, the price of epichlorohydrin has continued to rise, and most of the epichlorohydrin plant's operating load is stable at a high level, and the load of individual plant equipment has increased. The Haixing ring chlorine plant in Jiangsu has been restarted but has not yet been shipped. The problem of tight spot supply in the market has eased, and Shandong Haili still maintains a shutdown. Due to the recent period of the two sessions and the government's efforts to protect the environment, some TGIC factories have been in a state of suspension of production, TGIC's production capacity has been reduced, and there is a large-scale shortage in the market. Coupled with the sharp rise in raw materials in recent times, the cost pressure of production plants has increased, and the price of TGIC has also increased in the near future.

Supply and demand: Recently, TGIC production capacity has decreased, and downstream market demand has increased. Affected by the epidemic, the export market has decreased, and the production plants are overloaded, but the current market supply demand has not yet been improved, and the factories have stopped taking new orders.

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

1. HAA curing agent

    

   Raw material: Recently, due to the tight supply of DEA diethanolamine market, the shipment of imported goods has been delayed to Hong Kong, and the futures source will remain tight. For domestic factories: Silbon is operating at full load, while the Jinyan plant is stopped, the Xianshuo plant is running stably, and Mao Shihua is operating normally. Akzo and Yamba overhaul, the overall spot supply will still be in a relatively tight state, it is expected that diethanolamine will mainly maintain stability in the short term. The downstream market demand for DMA dimethyl adipate is relatively flat, and the market price is still at a low level. The production plant has a stable load on the construction. It is expected that DMA prices will be mainly maintained in the short term.

   Supply and demand: Downstream customer demand is dull, most of them are mainly rigid demand.

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