The relevant information this week is as
follows:
1. Raw material
Crude oil: WTI crude oil continues to struggle near $70 this week. Recently, Standard Chartered Bank stated that this weak trading situation in the crude oil market is unlikely to change in the short term, and its proprietary machine learning model SCORPIO predicts that oil prices may only change slightly in the short term; This also seems to be sounding the alarm for crude oil – short-term demand is weakening, and the supply glut may be more serious in 2024.
Natural gas: Natural gas is currently entering its peak season, and the JKM index continues to rise.
2. Production capacity
Among the country’s major production and refineries, Maoming has suspended production, the rest are operating normally.
|
Period |
Factory |
Status |
|
20240115—0121 |
Daqing Pec |
Normal |
|
20240115—0121 |
Daqing Ref & Che |
Normal |
|
20240115—0121 |
Dalian Pec |
Normal |
|
20240115—0121 |
Fushun Pec |
Normal |
|
20240115—0121 |
Lanzhou Pec |
Normal |
|
20240115—0121 |
Jingmen Pec |
Normal |
|
20240115—0121 |
Gaoqiao Pec |
Normal |
|
20240115—0121 |
Maoming Pec |
Suspended |
|
20240115—0121 |
Jinan Ref & Che |
Normal |
|
20240115—0121 |
Nanyang Pec |
Normal |
|
20240115—0121 |
Panjing Beiran |
Normal |
3. Stock
The total domestic paraffin inventory has been basically maintained, with only a slight decrease, and the remaining
inventory is 25,000 tons.
4. Market demand
Last week, due to the stimulation of price cuts and concerns about logistics inconvenience before the Spring Festival, a large number of downstream manufacturers began to purchase goods; this situation continued this week, but it has been significantly alleviated.
5. Industry analysis overview
The paraffin wax market began to stabilize this week, with manufacturers picking up goods as needed. As paraffin prices are currently expected to be adjusted monthly, the market is expected to remain calm before the Spring
Festival.
6. Price expectations
Prices of paraffin are not expected to adjust again this month. There is still a possibility of price cuts next month to gradually return to a reasonable level.