Japanese chemical raw material prices fluctuate significantly

Source: China Chemical Industry News Time: 2020-02-18

The price of the Japanese chemical raw material market is currently fluctuating, with mixed fluctuations. The Asian price of benzene, a raw material for synthetic resins and synthetic rubber, fell for the first time in three months. In February, the contract price of the JXTG Energy Index was US$710 per ton, which was US$25 lower than the previous month (a 3.4% drop). In addition to factory production cuts, the drop in crude oil prices is also a factor that affects the trend of benzene prices.

Judging from the market situation, with the sluggish demand for benzene, the profitability of Asian factories is declining. Production cuts have led to tighter supply and demand, prices have risen, and existing companies have begun to take action to restore production. Analysts said that since late January, due to the new coronary pneumonia epidemic, China's economic growth has slowed further, crude oil prices have fallen, and the market for benzene has also declined. The expected price in Japan is 82.5 yen per kilogram, which is 3.4 yen lower than the previous month (a 4% drop). This is the first time benzene prices have fallen in three months.

On the other hand, the price of phenol, which is a raw material for synthetic resin, has risen in Japan for three consecutive months. The February prices set by chemical giants such as Mitsui Chemicals rose by 1.6 yen per kilogram to 281.5 yen (a 0.6% increase). This is the highest price of the product in 15 months.

In addition, the price of naphtha, the basic raw material for petrochemical products, has increased. From October to December 2019, it was 41,300 yen per thousand liters, an increase of 1,100 yen (a 2.7% increase) from the previous quarter. This is the first domestic naphtha price increase in two quarters. It is estimated that the price of naphtha will still rise from January to March this year. Therefore, Japanese chemical companies are negotiating with customers on increasing the prices of synthetic resins (such as polyethylene).

More than half of naphtha used by petrochemical companies in Japan is imported, and the price of naphtha is determined based on the average import price per quarter. From January to March this year, the price of naphtha in Japan will rise to 45,000 yen per thousand liters. Various domestic chemical companies have announced plans to increase the prices of polyethylene and polypropylene, but more and more people worry that the Chinese epidemic will affect the market operation.