The relevant information this week is as follows:
1. Raw material
Crude oil: During this statistical period, the average price of WTI crude oil fell back to US$84.37. The main reason is that the market’s concerns about the situation in the Middle East have been suspended, coupled with the increase in EIA crude oil inventories and the strengthening of the US dollar; international oil prices fell sharply on Wednesday, with Brent crude oil and WTI crude oil falling by more than 3%. At the same time, this also reflects that demand is likely to be impacted by the high price of $90, especially now that the dollar is strong and interest rate cuts are on hold. Although on April 19, Israel’s retaliatory military action against Iran caused oil prices to soar to 86 US dollars, as the two sides “tacitly” downplayed the deal, it closed at 83.25 that day, up only 0.5%.
Natural gas: The demand for natural gas is gradually decreasing, and the JKM index is running at a low level.
2. Production capacity
Among the country’s major production and refineries, Maoming and Dalian have suspended production and Fushun cuts production due to equipment upgrades，the rest are operating normally.
|
Period |
Factory |
Status |
|
20240415—0421 |
Daqing Pec |
Normal |
|
20240415—0421 |
Daqing Ref & Che |
Normal |
|
20240415—0421 |
Dalian Pec |
Suspended |
|
20240415—0421 |
Fushun Pec |
Cut production |
|
20240415—0421 |
Lanzhou Pec |
Normal |
|
20240415—0421 |
Jingmen Pec |
Normal |
|
20240415—0421 |
Gaoqiao Pec |
Normal |
|
20240415—0421 |
Maoming Pec |
Suspended |
|
20240415—0421 |
Jinan Ref & Che |
Normal |
|
20240415—0421 |
Nanyang Pec |
Normal |
|
20240415—0421 |
Panjing Beiran |
Normal |
3. Stock
Due to production limitation, the total domestic paraffin less its inventory with the remaining inventory of about 13,000 tons.
4. Market demand
The demand for middle and lower reaches of the candle industry has weakened and the transaction volume is moderate.
5. Industry analysis overview
There was no price adjustment this week, but terminal demand weakened. At present, most market traders adopt low-profit shipping methods to ensure the completion of sales tasks.
6. Price expectations
As long as international oil prices do not fall, paraffin prices will remain mostly flat or rise slightly.