International oil prices affect the sale of chemicals

The downstream demand for chemical products gradually recovered, and its prices were supported. However, due to the dramatic fluctuations in the crude oil market, the uncertainty of chemical products such as methanol, PVC, and plastics rose sharply, and there were significant market differences.

Although the price of crude oil only appeared at an amplitude of US$10, it was enough to make the downstream chemical market lose its direction. Since February, international oil prices have fluctuate drastically, rising from around $44 per barrel to $50. The 11% increase or 8% decline has been quite common in the recent trading market. The price trend of crude oil in the United States seems to have changed. Has become "willful."

Investors are unpredictable about the nature of the crude oil market. From several trading days from January 29th to February 9th, the market once thought that the international oil price would rise to more than 60 US dollars per barrel, but then the international oil price stopped rising, and gradually adjusted to 50 US dollars / barrel. As a chemical product downstream of crude oil, its price trend will lose direction in the short term. Take PTA as an example, industry insiders believe that the recent fluctuations in crude oil intensified and the downstream stocks are currently low, making the market vulnerable to speculation.

This is also true of methanol. At present, methanol companies have little pressure on their inventory, and port inventories have continued to decline. Considering the recovery of traditional downstream demand and the maintenance of methanol plants, these factors are still supporting the methanol market. However, there are also views that the current high methanol prices, energy and other varieties of the plate has declined, the price of methanol will also have an impact, so before the real demand in downstream demand, methanol prices may still callback.