Raw material support acrylic industry continues upward

High international oil prices in a narrow range. Last week, Brent futures settlement price of $54.99 / barrel, an increase of $0.08 / barrel, or 0.15%, the range of 54.46-55.35 U.S. dollars / barrel. Last week, WTI futures settlement price of $52.96 / barrel, an increase of $1.03 / barrel, or 1.99%, the range of 52.49-53.3 U.S. dollars / barrel. The Russian ambassador to Turkey was assassinated, German truck butt event brought geopolitical risk; OPEC and Russia have said it will implement cuts lead to optimistic market sentiment, maintain prices at a higher position. But for the United States shale oil production and crude oil exports in Libya may be a substantial increase in concerns, but also to suppress the formation of oil prices, so the overall maintenance of a narrow range of oil prices.

OPEC confidence in the market will become the main factors affecting oil prices fluctuations. OPEC reached a reduction of 1 million 200 thousand barrels / day agreement, the actual implementation of the degree of reduction has become the focus of market attention. Market volatility has become the main factor affecting oil prices. Saudi Arabia, Iran, Iraq, and non OPEC major oil producing countries, Russia, have said they will strictly enforce the agreement, and some countries have notified customers last week that it will reduce supply. OPEC market for the real implementation of the confidence of production cuts, oil prices last week to support relatively high. In January 1st next year will begin to cut production, the country will reduce the output of the relevant measures to reduce output volatility will become the main factors affecting the volatility of oil prices.
U.S. shale oil production has become a major factor in oil prices. The United States crude oil production from the beginning of 9 million 230 thousand barrels a day, reduced to a year low of 8 million 420 thousand barrels a day, as oil prices rise, the number of active drilling rig, at the end of the year to increase production to 8 million 780 thousand barrels / day, the annual output of V font, highlighting the shale oil production for high oil prices elasticity. OPEC frozen postpartum, hedging shale oil manufacturers jumped $55 in oil prices hit the long-term price of crude oil, crude oil futures term structure more smooth, the current market expectations of shale oil increment is limited, will not affect the production effects, whether the future of shale oil and the actual yield rate will exceed expectations, will become one of the important factors affecting the oil price fluctuation. Domestic petrochemical market: polyester industry chain spreads continue to expand, acrylic acid and ester industry boom high.

Petrochemical products prices rose three last week (+11.5%), butadiene acrylate (+8.78%), butadiene rubber (8.45%), spreads up the top three for butadiene – liquefied gas (up 15.19%), propylene – naphtha (up 10.56%), caprolactam benzene (up 8.71%).
Raw material to support the acrylic industry continues to rise. Acrylic acid market continued to rise in the domestic market to support the acrylic acid, the cost of equipment manufacturers started under pressure, the market spot tension. Acrylic week average price increase 500 yuan / ton, butyl acrylate week average price increase 500 yuan / ton, acrylic acid acrylic spreads by 4310 yuan / ton up to 4681/ tons, up 6.88% over the past three months, acrylic acid acrylic spreads were 757 yuan, 1902 yuan, 4042 yuan, or larger, industry into the high boom interval.

Decline in the cost of polyester industry chain spreads continue to expand. The market offer stabilized after a gravity drop, PTA prices declined slightly, the overall market weak finishing MEG. The decline in costs led to the continued spread of polyester industry chain spreads, polyester -PTA& ethylene glycol spreads around +284 yuan / ton (6.56%). Polyester -PTA& ethylene glycol spreads 9-12 month average price of 2933343538384203 yuan, the price rose nearly $1300. PTA spreads over the same period the average price of 450 yuan, $448, $573, 812 yuan, the price difference rose by $362, the industry boom up.