Price Trend

The propane market fell slightly this week. At the beginning of the week, the average market price of propane was 4087.5 yuan/ton, and at the end of the week, it was 4045 yuan/ton. Within the week, the price fell by 1.04%, 13.6% compared with the same period last year.

II. Analysis of Influencing Factors

Products: This week, the domestic propane market fell slightly, and the trading atmosphere was general. As of February 15, propane from Dongming Petrochemical Company of Shandong Province and Zhonghai Fine Chemical Company of Shandong Province were not quoted for the time being. The ex-factory price of propane in Tianjin Bohai Chemical Industry Group is 4150 yuan/ton, that in Shandong Haiyou Petrochemical Group is 4130 yuan/ton, that in Shandong Huifeng Petrochemical Company is 4050 yuan/ton, that in Shandong Hengyuan Petrochemical Company is 4050 yuan/ton, and that in Shandong Binzhou Dayou Group is 4050 yuan/ton. The ex-factory price of propane in Sinopec Qingdao Refinery and Chemical Co., Ltd. is 3950 yuan/ton.

Industry chain: The domestic liquefied gas market rose slightly this week, with an average price of 3916.67 yuan/ton at the beginning of the week and 3690 yuan/ton at the end of the week. Within the week, the price increased by 1.11% and fell by 4.65% compared with the same period last year. The domestic propylene (East China) market fell sharply this week. At the beginning of the week, the average price of liquefied petroleum gas in the domestic market was 7870 yuan/ton, and at the end of the week, the average price was 7460 yuan/ton. Within the week, the price rose by 5.21%, which was 14.76% lower than the same period last year. Saudi CP in January: $430 per ton of propane, down 15% from last month. Butane is $420/ton, up 5% from last month. Due to the import of more resources, coupled with low prices, negative downstream market mentality, the overall atmosphere is general, manufacturers’shipments are blocked, coupled with the approaching Spring Festival, inventory pressure declined.

Industry: According to the price monitoring of business associations, in the 06th week (2.11-2.15) of 2019, there were 21 kinds of commodities rising annually in the chemical sector, of which 3 commodities increased by more than 5% accounted for 4.2% of the monitored commodities in the sector; the first three commodities were ethylene (13.62%), epichlorohydrin (9.65%) and hydrogen peroxide (7.67%). There are 21 kinds of commodities with a decline of more than 5%, accounting for 4.2% of the monitored commodities in this sector. The products with the first three declines are sulphur (-8.67%), propylene (-5.21%) and liquid ammonia (-5.14%). This week’s average rise and fall was 0.12%.

3. Future Market Forecast

Propane analysts of business associations believe that: at present, the effect of low-cost shipment is better, and the factory storehouse is smooth. The market is expected to rise steadily in the future.

On February 13, the hydrofluoric acid commodity index was 111.54, which was the same as yesterday. It was 20.57% lower than the cycle peak of 140.43 points (2018-02-21), and 108.14% higher than the lowest point of 53.59 on November 30, 2016. (Note: Period refers to 2011-09-01 to date)

According to statistics, the price trend of domestic hydrofluoric acid market has been slightly lower recently. As of 14 days, the domestic market price of hydrofluoric acid is 12028.33 yuan/ton, and the starting rate of domestic hydrofluoric acid is about 60%. Enterprises reflect that there is sufficient supply of hydrofluoric acid spot source in the field, the recent situation of goods in the field has deteriorated, some enterprises have increased their hydrofluoric acid stocks, and the ex-factory price has been slightly lowered, but due to the raw material market. High support, hydrofluoric acid market price decline is very limited. At present, the mainstream of hydrofluoric acid negotiations in the southern region is about 11,000-12,000 yuan/ton, while the price of hydrofluoric acid in the northern market is 11,500-13,000 yuan/ton. Domestic hydrofluoric acid market price trend is slightly lower, spot supply is sufficient, due to the recent high prices of raw materials market, fluorite prices are in a high state, but the price of raw materials fluorite slightly declined, the market price of hydrofluoric acid slightly lower.

Recent downstream refrigerant product maintenance devices are more, the demand for upstream fluorite and hydrofluoric acid has weakened, the recent downstream refrigerant trading market has declined, and the price of hydrofluoric acid products has slightly decreased. Recent downstream refrigerant market transactions are cool, R22 refrigerant facility starts at 70%, R22 refrigerant facility start-up rate is temporarily stable, the main production enterprise’s bulk water out-of-factory quotation fell to 17500-18500 yuan/ton, but the production enterprise does not have bulk water spot, mainly with a small number of cylinders shipped. In addition, the actual demand side of the market has declined, and the shipment market trend is poor. The domestic market price of R134a is slightly lower, the start-up rate of production enterprises is lower, the market demand for refrigerants is weakened, and manufacturers mainly export their products. However, the on-site transaction price does not change much, and the merchants purchase on demand. Recently, due to the impact of equipment maintenance, the upstream market demand for hydrofluoric acid has weakened.

Refrigerant on-site transaction prices slightly lower, refrigerant industry equipment overhaul increased, the upstream hydrofluoric acid market demand weakened, coupled with the upstream refrigerant industry to resist high prices of raw materials, Business Analyst Chen Ling believes that the hydrofluoric acid market may continue to decline, hydrofluoric acid prices will be around 11500 yuan per ton.

Peru’s environmental regulator reported Sunday that a tailings dam owned by Southern Copper Corp. had leaked and that the leaked sewage had been discharged into a flooded river.

The Southern Copper industry is one of the largest copper producers in the world.

Peru’s Environmental Assessment and Monitoring Agency (OEFA) reported that the tailings dam leakage occurred at the Cuajone copper mine in Moquegua, Peru, owned by Southern Copper Corporation, about 860 kilometers southeast of the capital Lima.

OEFA said the Cuajone mine reported to the regulator that it had launched an emergency mining plan because of heavy rains in the south of the country.

Southern Copper is a subsidiary of Grupo Mexico.

Heavy rains in southern Peru have killed at least five people and left hundreds homeless since last week.

OEFA said it would investigate the cause, responsibility and impact of the tailings dam leakage accident.

Jorge Chavez, director of Peru’s National Civil Defense Research Institute (Indeci), said heavy rains had killed at least five people in the country since Friday and three others were missing, especially in the southern regions of Moquegua and Tacna, where precipitation is expected to continue until Wednesday.

Peruvian President Martn Vizcarra has declared a state of emergency in several provinces.

On January 28, the hydrofluoric acid commodity index was 112.67, down 0.38 points from yesterday, down 19.77% from the peak of 140.43 points in the cycle (2018-02-21), and up 110.24% from the low of 53.59 points on November 30, 2016. (Note: Period refers to 2011-09-01 to date)

According to statistics, the domestic market price of hydrofluoric acid has been declining recently. As of 29 days, the domestic market price of hydrofluoric acid is 12333.33 yuan/ton. The domestic start-up rate of hydrofluoric acid is about 60%. Enterprises reflect that the supply of hydrofluoric acid on the spot is sufficient, the situation of goods on the spot is getting worse recently. Some Enterprises have increased their hydrofluoric acid stocks and slightly lowered their ex-factory prices, but due to the high level of raw material market. Supported by this, the price decline of hydrofluoric acid market is very limited. At present, the mainstream of hydrofluoric acid negotiations in the southern region is about 11500-12000 yuan/ton, while the price of hydrofluoric acid in the northern market is about 12000-13000 yuan/ton. Domestic hydrofluoric acid market price trend is slightly lower, spot supply is sufficient, due to the recent high prices of raw materials market, fluorite prices are in a high state, but the price of raw materials fluorite slightly declined, the market price of hydrofluoric acid slightly lower.

Recent downstream refrigerant product maintenance devices are more, the demand for upstream fluorite and hydrofluoric acid has weakened, the recent downstream refrigerant trading market has declined, and the price of hydrofluoric acid products has slightly decreased. Recent downstream refrigerant market transactions are cool, R22 refrigerant facility starts at 70%, R22 refrigerant facility start-up rate is temporarily stable, the main production enterprise’s bulk water out-of-factory quotation fell to 17500-18500 yuan/ton, but the production enterprise does not have bulk water spot, mainly with a small number of cylinders shipped. In addition, the actual demand side of the market has declined, and the shipment market trend is poor. The domestic market price of R134a is slightly lower, the start-up rate of production enterprises is lower, the market demand for refrigerants is weakened, and manufacturers mainly export their products. However, the on-site transaction price does not change much, and the merchants purchase on demand. Recently, due to the impact of equipment maintenance, the upstream market demand for hydrofluoric acid has weakened.

Refrigerant on-site transaction prices slightly lower, refrigerant industry equipment overhaul increased, the upstream market demand for hydrofluoric acid weakened, coupled with the upstream refrigerant industry to resist high prices of raw materials, Business Analyst Chen Ling believes that the hydrofluoric acid market will continue to decline, hydrofluoric acid prices will be around 12,000 yuan/ton.

Beijing time, 28 news, the U.S. Treasury Department announced on Sunday the lifting of sanctions on three companies related to Russian billionaire Oleg Deripaska, including Rusal, En + Group and JSC EuroSib Energo.

According to the news, “The Foreign Assets Control Office of the US Treasury today (OFAC) cancelled the sanctions imposed on Russian En + Group,’Rusal’and European Siberian Energy Company according to a notice sent to Congress on December 19, 2018,” but all the sanctions against Jeripaska are still in effect.

The U.S. Treasury Department said last 20 that sanctions against the three companies would be lifted within 30 days because “these companies have pledged to drastically reduce Deripaska’s ownership and control”.

Aluminum Russia is the world’s second largest aluminium producer, accounting for 6% of global aluminium supply.