In September, the domestic spandex market maintained a slight upward trend. According to the Commodity Market Analysis System of Business Society, the price of 40D spandex as of September 7th was 34250 yuan/ton, an increase of 0.74% compared to the beginning of the month. The overall construction of the industry is around 72%, and the cost side is still strong, with a slight increase in downstream demand.

Current mainstream price statistics of spandex market (unit: yuan/ton)

20D/ 30D/ 40D

Zhejiang/ 38000./37000./35000

Henan/ 37000./35500./33000

Fujian/. 37000.//. 34000./32500

Jiangsu/ 39500./37500./36500

Cost support still exists, and the price of pure MDI raw materials in the East China market has risen. The mainstream offer for Shanghai goods is 22200-22800 yuan/ton, and the market supply is limited. The overall downstream market is slow to follow up, with a focus on small orders. The price of PTMEG remains stable, with a molecular weight of 1800 quoted at 20000 yuan/ton, with little change in the device.

Since mid to late August, downstream terminal weaving has shown a slight increase in textile and clothing orders. Most factories have reported that winter fabrics are gradually being issued, and the operating rate of weaving machines in Jiangsu and Zhejiang has slightly increased to over 64%. At the same time, there have been frequent regulatory notices related to the Asian Games recently. Due to concerns about a reduction in the overall supply of raw materials in the later stage, procurement costs have increased, and some downstream companies have concentrated replenishment.

Analysts from Business Society believe that the current increase in cost pressure has forced spandex factories to raise prices. The demand side is slowly recovering, with raw material prices rising, but the terminal order situation has not significantly improved. The “Jinjiu” market remains to be observed, and it is expected that the short-term spandex market will be cautious and wait-and-see.

According to the Commodity Market Analysis System of the Business Society, as of September 6th, the average price quoted by domestic industrial grade 85% formic acid enterprises was 3825.00 yuan/ton, which is the same as the price on September 1st and an increase of 1.55% compared to the same period last year.

Since September, there has been no significant fluctuation in the domestic industrial grade 85% formic acid market, and mainstream prices have remained stable. Recently, the price of raw material sulfuric acid has remained high and stable, while the raw material methanol market has experienced narrow fluctuations. The cost support has been stable, with downstream procurement being the main focus and the market trading atmosphere being average. Holders are actively shipping, and the mainstream quotation of enterprises is around 3900 yuan/ton.

Business Society formic acid analysts believe that current cost support still exists, while supply and demand performance is average. It is expected that the domestic industrial grade 85% formic acid market will stabilize and consolidate in the short term, and more attention needs to be paid to changes in demand.

According to the Commodity Market Analysis System of Business Society, the domestic ethanol market is operating at a high level. From August 29th to September 5th, the domestic ethanol price increased from 6812 yuan/ton to 6825 yuan/ton, with a weekly price increase of 0.18%, a month on month increase of 2.63%, and a year-on-year increase of 2.63%. The high support of raw materials has led to an increase in demand for some downstream products, but the supply has remained high, resulting in a sluggish rise in the ethanol market in the future.

On the cost side, the high price of corn fluctuates, and the inventory of aged corn will continue to decline. The demand for breeding and feed production will continue to increase. The overall supply of aged corn will continue to be in a period of shortage, and the supply capacity will continue to decline. Traders are reluctant to sell at low prices. Currently, domestic spring corn has also started to be listed, with spring corn in Hubei, Sichuan and other places starting to increase in quantity, and some early maturing spring corn in Shandong, Henan and other places also being listed sporadically, At present, there is no centralized increase in quantity, and the prices in the sales area remain high. There are temporary positive factors in the cost of ethanol.

On the supply side, the ethanol supply side is mixed.

On the demand side, downstream chemical companies are just in need of procurement, and large ethyl acetate factories are gradually returning to full capacity. Some factories in East China have maintenance plans. The short-term demand for ethanol is mixed.

In the future market forecast, cost and supply support are high, and demand is expected to break through. Ethanol analysts from Business Society predict that the domestic ethanol market may experience strong fluctuations in the short term.

According to the commodity market analysis system of the Business Society, the 1 # electrolytic manganese market is temporarily stable this week (August 28th to September 4th), and the market price in the East China region was at 13800 yuan/ton on September 4th, with a stable cycle.

In terms of manganese ore: This week, the manganese ore market has been consolidating and operating, with a strong wait-and-see sentiment in the market. Queries for manganese ore in Qinzhou Port have decreased, and some high grade minerals in the market have fewer sources of goods. Some varieties have slightly increased in prices. Tianjin Port’s semi carbonated acid: 32 yuan/ton.

The K-bar chart of commodity prices uses the concept of a price trend K-line to reflect weekly or monthly price fluctuations in the form of a bar chart. Investors can buy and sell investments based on the changes in the K-bar chart. Red indicates an increase; Green indicates a decline; The height of the K-bar represents the range of fluctuations. From the weekly and monthly electrolytic manganese K-bar chart above, it can be seen that prices have been declining for 5 consecutive months since December 2022. After a slight recovery in May, prices have been declining for 8 consecutive weeks since June, and prices have temporarily stabilized this week.

This week, the electrolytic manganese market is temporarily stable, with mainstream market prices ranging from 12400 to 12500 yuan/ton, which is temporarily stable compared to last week’s market prices. The atmosphere in the domestic market this week remains somewhat wait-and-see. After the weakening of companies’ willingness to support prices, the driving force for market prices to continue to rise is limited. Expectations for the future market have weakened, and the overall market is wait-and-see. After the recent introduction of steel bidding prices by major domestic factories, they have basically complied with market rules, with relatively stable quotations, which has also driven a stable atmosphere in the market. Currently, the atmosphere in various aspects is relatively wait-and-see, and the market is waiting for future guidance on steel bidding prices. In terms of supply and demand, some domestic enterprises reduced production in August, resulting in tight supply. In the future, the market tends to be wait-and-see and will remain temporarily stable in the short term.

Related data:

Customs data shows that the total export volume of unwrought manganese, manganese waste and powder (electrolytic manganese) in June 2023 was approximately 24847.275 tons, an increase of 15.74% month on month and a decrease of 19.20% year on year.

In June 2023, the total import volume of unwrought manganese, manganese waste and powder (electrolytic manganese) was approximately 1520.011 tons, a decrease of 39.2% compared to the previous month and a year-on-year increase of 51.99%.

On September 3rd, the base metal index stood at 1231 points, unchanged from yesterday, a decrease of 23.82% from the cycle’s highest point of 1616 points (2022-03-09), and an increase of 91.74% from the lowest point of 642 points on November 24th, 2015. (Note: The cycle refers to the period from December 1st, 2011 to the present).

According to the price monitoring of the Business Society, there were 14 commodities in the non-ferrous sector on the list of commodity prices rising and falling in the 35th week of 2023 (8.28-9.1), with aluminum (3.65%), dysprosium metal (2.94%), and lead (2.32%) ranking among the top three commodities. There are two products that have decreased compared to the previous month, with nickel (-1.68%) and cobalt (-1.65%) being the top two products in terms of decline. This week’s average increase or decrease was 0.68%.

Price trend

In August, the domestic ABS market fluctuated and strengthened, with overall spot prices rising. According to the Commodity Market Analysis System of Business Society, as of August 31, the average price of ABS sample products was 10750 yuan/ton, with a+1.90% increase or decrease compared to the average price level at the beginning of the month.

Cause analysis

In terms of supply: The ABS industry has recently experienced a high load, with a total operating rate of around 92%, which has increased compared to the previous period. The on-site supply of goods is abundant. The inventory position has increased, reaching over 170000 tons at the end of the month. The supply side generally supports the spot market.

In terms of raw materials, the overall performance of ABS upstream three materials was relatively strong this month. The market situation of raw material acrylonitrile has significantly increased. The price of propylene fluctuates and rises, while the overall cost of acrylonitrile increases; Downstream demand forms support for acrylonitrile; The price of acrylonitrile has significantly increased supported by raw materials and demand.

The price of butadiene has increased this month. At the beginning of the month, the prices of crude oil and naphtha rose, which brought some cost drivers. At the same time, some downstream product prices rose, and there was some support for market demand. In the second half of the month, the prices of external markets increased, and some export manufacturers controlled the quantity and increased prices, leading to a subsequent increase in market quotations. At the same time, news of device maintenance has been released, and it is expected that the domestic butadiene market will continue to be strong in the short term.

From the figure below, it can be seen that the market price of styrene fell first and then rose in August. The main reason for the decline is the weakening of cost support. The reason for the increase is that Lianyungang Petrochemical, Dongming Petrochemical, and Shandong Lihuayi styrene plants have undergone maintenance, resulting in low styrene inventory and a rising market.

In terms of demand: Currently, downstream factories, including the main terminal home appliance industry, have average enthusiasm for stocking. In addition, the downstream operating rate is still at a low level due to factors such as season and power restrictions. After the price increase of ABS, the manufacturer’s acceptance declined, and the procurement operation was cautious, resulting in average overall trading volume.

Future Market Forecast

In August, the upstream three materials of ABS strengthened, providing reasonable cost support for ABS. The construction of petrochemical plants has experienced a narrow increase compared to the previous period, and the accumulation of market inventory is limited. On the demand side, support is weak, and the overall pattern of weak and rigid demand is maintained. It is expected that the ABS market may continue to operate in a stronger direction.