Petrochemical products will enter a new round of rising period

[China Epoxy Network (China Epoxy Industry Online)March 12, 2010: Based on factors such as mild inflation, gradual economic recovery and increasing market confidence, it is in the industry chain The upstream petroleum and chemical products will enter a new round of price increases this year.
According to experts from the China Epoxy Resin Industry Association ( petrochemical products have shown an upward trend from industry data.
Among the 178 products tracked by the China Petrochemical Association, the price increase in January accounted for 69.
7.
%, the share of the month-on-month increase in February reached 60.
1%.
The main factors that support the price of petrochemical products to enter the rising cycle are: First of all, from a macro perspective, rising crude oil prices and rising prices of other bulk commodities have supported the price increase of petrochemical products.
Although crude oil prices have remained at the level of US$70-80/barrel since the end of October, they have doubled compared with US$35/barrel at the beginning of 2009, while the price of downstream chemical products has not risen so much during the same period.
The reason for this situation is that it takes a period of time for the consumption of low-priced raw material inventory, and there is a time difference between the price of downstream products and the price of crude oil; secondly, as the economy recovers and terminal demand improves, downstream industries are more able to withstand price increases in the upstream petrochemical industry.
Or the ability to conduct cost pressure downward is enhanced, and the demand for petrochemical products is also increasing, which constitutes the basis for the price increase of petrochemical products.
The downstream industries of the petrochemical industry are mainly real estate, automobiles, home appliances, textiles and clothing, agricultural products, etc.
; again, The change in market mentality, an important reason for the downturn in the petrochemical market in 2009 was that due to the impact of the international financial crisis, the market mentality became cautious, and the destocking led to a reduction in downstream demand for petrochemical producers.
At present, the market is beginning to regain confidence.
At present, traders in the petrochemical industry generally believe that the price of petrochemical products has fallen to the bottom at the end of 2009, so social inventories have begun to stop falling and rebound.
Historical experience shows that traders’ opinions can often magnify the negative impact of the crisis and the positive recovery.
influences.

(Our reporter Wu Xi)

Ben Wang 2007 enable the "Chinese epoxy net" new name retains "China Epoxy Resin Industry online" name
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