Energy and chemical, who is the king of momentum at the last week?
Last week, Crude oil price pullback after a substantial rose. The prices of PVC, sulfuric acid, methanol and other products all fell accordingly. Among them, the PVC 09 contract fell sharply on Friday, and the main PVC contract changed from the 05 contract to the 09 contract on the 22nd.
During the week, the high and low points of the 09 contract were 8813-9158, with a price difference of 345, second only to fuel oil, crude oil and other energy commodities; the sulfuric acid market price shows rise and down,but it’s local price were mainly down, and the price reduction range was around 30-210 yuan / ton ; The methanol market price fell slightly, with a decrease of about 0.9%. On the other hand, Ethylene glycol prices rose after reaching the lowest point, while styrene prices fluctuated back and forth at high prices, with weekly price changes reaching nearly 3%.
At the beginning of last week, the EU planned to draft an import ban on Russian oil, and Libya's largest oil field was shut down. Therefore, the market shows not good, and investors' concerns about tight oil supply intensified, crude oil prices continued to rise. In the late part of the week, although the crude oil price fell, it remained at a high price and was still in the stage of fluctuation.
Affected by the crude oil price, the pvc09 contract fluctuated slightly from Monday to Thursday, and the 09 contract price fell sharply on Friday. The main PVC contract was changed from 05 contract to 09 contract on the 22nd.
The comprehensive comparison of prices shows a downward trend during the week. In addition to the crude oil price fluctuation caused by geopolitics and the logistics and transportation pressure caused by public health events, there is also the continuous supply support caused by the delay of PVC plant maintenance this year. The maintenance loss is far lower than expected, which is difficult to shake the market change in the short term.
In terms of sulfuric acid market, from the perspective of upstream and downstream industrial chain, the upstream sulfur market continued to rise recently, with the quotation rising from 3543.33 yuan / ton last weekend to 3660.00 yuan / ton this weekend, at an increase of 3.29%. The upstream market gradually rise recently and the cost support has been strengthened.
The downstream titanium dioxide market fell slightly, and the quotation fell from 21100.00 yuan / ton last weekend to 21033.33 yuan / ton this weekend,at an increase of 0.32%. The downstream market fell slightly, which had a negative impact on the price of sulfuric acid.
The price of methanol market first rose and then fell last week, which fluctuated synchronously with the price of crude oil, with a range of 20-130 yuan / ton. The market negotiation atmosphere shows slightly deadlocked. With the weakening of crude oil and macro support, futures fell in fluctuations. The mentality of field operators was different. The limited market transportation in some areas still existed, showing that there were many traders and just needed to follow up. The coal market has entered the off-season, and the methanol market price is expected to fluctuate slightly in the short term.
In conclusion, in addition to oil products, PVC in the energy chemical sector last week had the strongest decline, and the sharp fluctuations attracted a large amount of capital inflows. Under the contract conversion, it is particularly necessary to operate cautiously. We look forward to the reduction of supply for maintenance from May to July and the rise of demand after the epidemic dissipated, which may bring about supply and demand.
