Starting in May, the domestic market for industrial naphthalene was again under investigation. The mainstream transaction price in the market was between RMB 5,200 and RMB 5,500 (t price, the same below), and the low-end price even further explored the low of RMB 5,000 at the beginning of the year, a drop of 2% to 3%. The causes of this round of dip market, in addition to weakened raw material support, bearish psychological enhancement, the company's liquidity constraints, downstream water reducer, refined naphthalene, 2-naphthol and other companies operating rate is reduced, the weakening of demand is the key. However, due to the impact of centralized overhaul of coal tar deep-processing companies in May, the production of industrial naphthalene also dropped simultaneously, and the market entered a state of simultaneous shrinkage in volume and price. At this point, the bottoming out is a good opportunity for bottoming out, and brewing in the market to recover. Weaknesses in the downstream market It is understood that the real estate industry is still under the influence of state regulation, and there is no positive driving force. The operating rate of the construction market has not been substantially improved. The operating rate of water reducing agent companies has remained at 50% to 60%. In May, the operating rate in some regions continued to decline, and the substantive demand for industrial naphthalene was significantly lower than in previous years. Even some companies could only lower the requirements on the quality of raw materials in order to reduce costs. In addition, the market for refined naphthalene and 2-naphthol increased under the influence of the downturn in the dyestuff industry and poor exports. The transaction volume was slightly weaker, and the ability to pull the industrial naphthalene market weakened. Lower raw material prices Since the end of February, the domestic coal tar market has continued to rise, extending the rally to mid-April, the mainstream transaction price of 2800 to 3,000 yuan, in some areas even up to 3200 yuan. During the same period, the fuel oil market continued to improve, and it played a catalytic role in the industrial naphthalene market. However, after entering the end of April, the continuous rise of the coal tar market began to cool down due to an involuntary and active cooperation. After the “May 1st,†some regions have seen a slight decline of around 2%, causing negative pressure on industrial naphthalene producers. In the absence of real good background, the deep-processing companies have gradually become increasingly bearish on the outlook. At this time, the rapid clearing and shipping behavior of traders also had a negative impact on the industrial naphthalene market. Limiting the flow of funds in terminal companies It is understood that some projects under construction or planned to build real estate projects have caused some projects to be postponed or stopped due to the slow turnover of funds. At the same time, some large-scale engineering construction units in China have also experienced varying degrees of liquidity shortages. For example, the operating rate of domestic large-scale mixing stations has significantly decreased compared to the same period of last year, and the combined operating rate has dropped by more than 30% year-on-year, in some regions. The mixing plant was still shut down, which in turn affected the overall demand for water-reducing agents, which in turn reduced the demand for the industrial naphthalene market. In addition, the domestic terminal dye enterprises have not changed due to sluggish market, poor export and other issues, and there have been tensions in the withdrawal of funds, causing the entire industry chain to weaken. Sustained downward sliding energy is insufficient for the current industry naphthalene market signs of weakness, from the perspective of comprehensive cost factors, the status of its high cost and low price has not changed, deep processing companies are basically unprofitable, even small processing companies have entered a loss state, subject to high costs Supporting influence, the kinetic energy that has fallen again has obviously been insufficient, and the space for falling back is limited. At the same time, due to the continuous low operation of industrial naphthalene, the demand for other products has increased. For example, manufacturers of phthalic anhydride have paid more attention to the industrial naphthalene market, and the production of phthalic anhydride by naphthalene oxidation is relatively low due to relatively low costs. Jiangsu, Shandong, Shanxi, Hebei, Hubei and Tianjin Some enterprises in other places have re-initiated the production of the process, which will inevitably increase the demand for industrial naphthalene. According to customs statistics in March, China’s industrial naphthalene is a country relying mainly on imports. The first time that month saw a significant increase in exports, with exports of 652 tons, a year-on-year increase of 5885%. Although the absolute number of exports is only 12% of imports, this reflects a positive sign of exports. On the other hand, it also reflects that domestic prices have entered historically low levels. In addition, on May 18, the central bank cut the deposit reserve ratio of deposit-taking financial institutions by 0.5 percentage points for the second time this year, releasing about 400 billion yuan in liquidity to the market, and it will be an economic entity that includes the chemical industry. The important positive is that it will also play a positive role in boosting the recovery of industrial naphthalene market after it rebounds. Crushing And Screening Machine
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