The price of isooctanol in July hit a new low within a year
According to the Commodity Market Analysis System of Shengyi Society, as of July 30th, the price of isooctanol was 8966.67 yuan/ton, a fluctuating decrease of 7.66% compared to the price of 9710 yuan/ton on July 1st at the beginning of the month; Compared to January 1st, the price dropped by 12950 yuan/ton, a decrease of 30.76%. In July, the price of isooctanol fluctuated and fell, reaching a new low for the year at the end of the month. On July 30th, the price of isooctanol was at its lowest point in a year. In July, isooctanol companies started operating at a high level, downstream buying decreased, and high-end market offers came under pressure. Shandong factories voluntarily lowered prices to ship, and isooctanol prices hit a new low in a year.
Supply factors
In July, the isooctanol plant in the northwest region resumed normal production. The isooctanol plant in Zibo, Shandong has a plan to start production, and isooctanol enterprises are operating at a high level, with sufficient supply of isooctanol. Downstream buying has slowed down, high-end market offers are under pressure, Shandong factory has lowered prices for shipments, plasticizer market transactions are poor, and the atmosphere for new orders in the isooctanol market continues to be weak. The rise in isooctanol prices has provided weak support.
Demand factors
According to the Commodity Market Analysis System of Shengyi Society, as of July 30th, the price of plasticizer DOP was 9525 yuan/ton, a decrease of 3.42% from the DOP price of 9862.50 yuan/ton on July 1st at the beginning of the month; Compared to January 1st, the DOP price dropped by 21.23% to 12091.67 yuan/ton. The price of plasticizer DOP fluctuated and fell in July. On July 30th, the price was at its lowest point in a year, a decrease of 2691.67 yuan/ton or 22.03% from the highest price of 12216.67 yuan/ton in a year. In the third quarter, plasticizers were in the off-season of market consumption, and plasticizer factories were also cautious about purchasing raw material octanol. Customers bought in at low prices and concentrated on short-term replenishment to support market prices. However, the upward support was insufficient, and the market lacked sustained upward momentum.
Cost factors
According to the Business Society’s propylene commodity market analysis system, as of July 30th, the price of propylene was 7088.25 yuan/ton, which fluctuated and consolidated compared to the price of 7133.25 yuan/ton on July 1st, with a decrease of 0.63%; Compared to January 1st, the price of propylene was 6868.25 yuan/ton, fluctuating and rising by 3.20%. The price of propylene fluctuated and consolidated in July, reaching a high level in 24 years. Some enterprises have reduced their load operation, resulting in a decline in production capacity utilization rate, and manufacturers’ offers remain firm. The propylene market is operating steadily with a moderate to strong trend, while the cost of octanol is strongly supported.
Future expectations
According to the data analyst of Business Society’s octanol product, in terms of cost, propylene prices are consolidating at a high level, while isooctanol costs remain strong; In terms of supply, isooctanol manufacturers are operating at a high level, and there is sufficient supply of octanol; In terms of demand, during the off-season of consumption, plasticizer factories also adopt a cautious attitude towards the procurement of raw material octanol, and downstream customers replenish their inventory at low prices. Overall, in the future, there is sufficient supply and weak demand for isooctanol, and cost support still exists. The price of isooctanol in the future is weakly consolidating.
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