According to monitoring data from Business Society, as of June 7, 2023, the market price of domestically produced industrial grade propylene glycol was referenced at 7800 yuan/ton. Compared to June 1 (reference price of propylene glycol was 8033 yuan/ton), the price was reduced by 233 yuan/ton, a decrease of 2.90%.

From the data monitoring chart of the Business Society, it can be seen that entering June (6.1-6.7), the overall domestic propylene glycol market is showing a weak and declining trend. Entering June, the downstream demand for propylene glycol in China has not improved significantly, and the overall performance of the demand side is weak. On the cost side of raw materials, the decline in the market for epoxy propane also provides insufficient cost support for propylene glycol. Under the dual pressure of cost demand, the overall propylene glycol market continues to operate in a weak state. As of June 7th, the domestic market price of propylene glycol is around 7500-7800 yuan/ton. The higher price refers to 8200 yuan/ton.

Analysis of Future Market Trends

At present, the overall trading atmosphere in the domestic propylene glycol market is light, with average new orders on the market and slow and stagnant supply and demand transmission. It is expected that new production capacity will be put into operation on the market, and the overall supply side is relatively sufficient. According to the propylene glycol data analyst from Business Society, in the short term, the domestic propylene glycol market will mainly focus on regional consolidation and operation, and the specific trend still needs to pay more attention to changes in news on the supply and demand side.

Fluctuation and decline in aluminum fluoride prices

According to the Commodity Market Analysis System of the Business Society, as of June 6th, the domestic quotation for aluminum fluoride was 10125 yuan/ton, a decrease of 2.88% compared to the price of 10425 yuan/ton on June 1st at the beginning of the month. The prices of raw materials continue to decline, and the cost of aluminum fluoride has decreased. In June, the price of aluminum fluoride fluctuated and fell.

The price of raw material hydrofluoric acid fluctuates and falls

According to the Commodity Market Analysis System of the Business Society, since mid April, the prices of raw material hydrofluoric acid have fluctuated and fallen. As of June 6th, the price of hydrofluoric acid was 9657.14 yuan/ton, a decrease of 0.29% compared to the price of 9685.71 yuan/ton on June 1st, and a decrease of 6.76% compared to the price of 10357.14 yuan/ton on April 10th. The price of hydrofluoric acid continues to decline, the cost of aluminum fluoride decreases, and the downward pressure on aluminum fluoride increases.

Electrolytic aluminum prices fluctuate and fall

According to the Commodity Market Analysis System of Business Society, as of June 6th, the price of electrolytic aluminum was 18420 yuan/ton, which has stabilized compared to the price of electrolytic aluminum on June 1st, which was 18413.33 yuan/ton; The price of electrolytic aluminum decreased by 3.69% compared to 19126.67 yuan/ton on April 20th. Macroeconomic contraction, a decrease in real estate investment, a decrease in the production of electrolytic aluminum enterprises, weak downstream demand for aluminum fluoride, and weakened support for the rise of aluminum fluoride.

Market Overview and Forecast

Analysts from the fluoride aluminum industry at Business Society believe that since mid April, the price of hydrofluoric acid has continued to decline, resulting in a decrease in the cost of aluminum fluoride raw materials; Downstream electrolytic aluminum enterprises have seen a decline in production, weak demand for aluminum fluoride, and insufficient support for the rise of aluminum fluoride. In the future, the demand for cost reduction is not good, and it is expected that the price of aluminum fluoride will fluctuate and fall in the future.

This week (5.29-6.5), the acrylonitrile market saw a significant decline. According to the Commodity Market Analysis System of Business Society, as of June 5th, the bulk water price in the acrylonitrile market was 8287 yuan/ton, a decrease of 10.89% from last Monday’s 9300 yuan/ton. At present, the self pickup price of acrylonitrile in the market is between 7900 to 8300 yuan/ton. The prices of raw materials continue to decline, with weak support for acrylonitrile; The downstream atmosphere is weak, and prices have decreased slightly, while the demand for acrylonitrile continues to be weak; In addition, the supply side has slightly improved, and the acrylonitrile market has slightly declined.

This week (5.29-6.5), the domestic acrylonitrile operating rate slightly increased.

Recently (5.29-6.5), the raw material propylene market continued to decline, and the cost support for acrylonitrile continued to be weak. According to the Commodity Market Analysis System of Business Society, as of June 5th, the domestic propylene price was 6270 yuan/ton, a decrease of 3.09% from last Monday’s 6470 yuan/ton.

Downstream ABS prices continue to decline, with industry device starts slightly dropping to around 8.4%, weakening support for acrylonitrile demand; The domestic nitrile rubber has slightly declined, and the price of polyacrylamide has temporarily stabilized at a low level, with weak support for acrylonitrile.

Future Forecast: Business Society Acrylonitrile Analysts believe that the current supply pressure of acrylonitrile has slightly increased, coupled with the weakening of demand and low consolidation of cost, it is expected that the acrylonitrile market will be weak and volatile in the short term.

Price trend

The recent negative continuation of the domestic EVA market has led to a significant decline in spot prices. According to data monitoring from Business Society, as of June 2nd, the average ex factory price of EVA in China was 12833.33 yuan/ton, an increase of -4.47% compared to the beginning of the week.

Cause analysis

The domestic EVA market continued to be weak this week. On the supply side, the EVA industry continues to experience high operating rates and a slight decrease in operating rates within the week, but the overall position is still at a high level of about 85%. The market supply is abundant, and there is pressure on factory inventory. Factory factory prices continue to be lowered, and the profitability of EVA polymerization plants continues to weaken. Social inventory pressure is also high, with traders operating at the end of last month with a bias towards giving up profits and taking orders. On the buyer’s side, due to the news of the new production device, the stocking operation was cautious and the follow-up was poor during the week. Terminal enterprises in both photovoltaic and foaming materials have lagged behind in their follow-up, resulting in frequent occurrences of low prices and low trading volume on the market. Enterprises have resistance to high priced sources of goods. The current demand side continues to have a bearish impact on the EVA price market.

Overall, the supply side pressure on the EVA market has been limited this week, and downstream demand is generally weak. Overall, the factory price of enterprises has been lowered, while businesses have followed suit. The demand for foaming is particularly poor, and the overall market is empty. It is expected that the domestic EVA market may continue to be weak in the short term.

Zinc prices plummeted significantly in May

According to the Commodity Market Analysis System of the Business Society, as of May 31, the zinc price was 19426 yuan/ton, a decrease of 9.11% compared to the zinc price of 21374 yuan/ton on May 1. In May, the spot zinc price fell below the 20000 yuan mark, setting a new historical low since March 2021.

China Manufacturing Purchasing Managers Index

According to data released by the National Bureau of Statistics, in May, the Purchasing Managers’ Index (PMI) of the manufacturing industry was 48.8%, a decrease of 0.4 percentage points from the previous month, below the critical point, and the level of manufacturing prosperity slightly declined. The level of China’s economic prosperity has declined, and the foundation for restoring development still needs to be consolidated. The recovery of the manufacturing industry has been poor, and the demand for zinc in the market has fallen short of expectations.

Low demand for zinc ingots during the off-season of consumption

According to the Commodity Market Analysis System of the Business Society, since April, the price of galvanized sheet has fluctuated and fallen, with low production levels for galvanized sheet and zinc oxide enterprises. The downstream consumption season of the zinc market is low, and the demand for zinc ingots is sluggish.

The domestic real estate market is weak

According to data released by the National Bureau of Statistics, from January to April, the national investment in real estate development reached 3551.4 billion yuan, a year-on-year decrease of 6.2%. From January to April, the construction area of real estate development enterprises’ houses was 7712.71 million square meters, a year-on-year decrease of 5.6%. The newly constructed area of houses is 312.2 million square meters, a decrease of 21.2%. The completed area of houses is 236.78 million square meters, an increase of 18.8%. In April, the real estate development prosperity index was 94.78. The real estate market is weak and the prosperity index is insufficient, and the demand for zinc ingots is less than expected, increasing the downward pressure on the zinc market.

Expected excess supply in the zinc market

From the trend chart of zinc concentrate processing fees, it can be seen that the decline in zinc concentrate processing fees slowed down in May, and there was a brief rebound in zinc concentrate processing fees. Zinc concentrate processing fees stopped falling, zinc smelting enterprises’ enthusiasm for starting operations increased, zinc ingot production is expected to increase, and zinc market supply is expected to increase.

Expectations of zinc surplus continue to expand

According to data analysis from CRU Group, demand for zinc will be relatively weak in the coming years, while zinc mining and refining production will continue to grow. In the next five years, global refined zinc production is expected to increase by 1.3 million tons, a year-on-year increase of 3.4%; Among them, there will be an increase of 800000 tons outside of China, and an increase of approximately 500000 tons in China. Due to the economic recovery in China and Europe, global refined zinc demand is expected to increase by 2.7% year-on-year this year, reversing the 4.1% decline in 2022, but the demand growth rate is slower than the supply growth. The surplus supply of zinc continues to expand, and it is predicted that the zinc price on the London Metal Exchange (LME) will decrease from $3442 per ton in 2022 to $3050 per ton in 2023, with a potential further decrease to $2525 in 2024 and $2000 in 2025. Expectations of excess supply in the zinc market have increased the pressure on zinc prices to decline.

Future Market Forecast

According to data analysts from Business Society, in terms of supply, zinc concentrate processing fees are stabilizing. At the same time, the impact of Yunnan power restrictions on zinc smelting enterprises is weakening, and the enthusiasm of zinc smelting manufacturers to start operations is increasing. The supply of zinc in the market is stable. In terms of demand, during the off-season in the galvanized sheet and zinc oxide markets, demand for zinc ingots is weak, PMI in domestic manufacturing has decreased, the real estate infrastructure market has weakened, and expectations for zinc market demand have weakened. International zinc market demand is weak, and the pressure on zinc price decline has increased. In the future, the supply of zinc in the market is stable and the demand is sluggish, with significant pressure on zinc ingots. It is expected that zinc prices will fluctuate and fall in the future.