Prices of Organic Chemicals Changed Differently    

By John Zheng    

Pure benzene

In early August 2009, because of the price rise of crude oil in the international market and decrease of inventory, China's pure benzene price rose considerably.
   From mid to late August, the price of pure benzene fell apparently in response to the price down in Asian market and decreased demand for pure benzene in downstream sectors.
   On September 8th, pure benzene was traded between RMB5 550/t and RMB5 700/t in eastern China, a drop of RMB50-100/t from a month earlier.   
   Due to the high production cost and decreased supply caused by the increased export, it is expected that the price of pure benzene will be unlikely to tumble in September 2009.

Toluene

In August 2009, China's toluene prices firstly rose apparently with increased trading actions because of the price rise of crude oil in the international market, and then were dull in response to the soft demand for toluene in downstream sectors.
    As of September 8th, toluene was traded at around RMB6 350-6 400/t in eastern China, an increase of RMB50-100/t over that in the previous month.
    In September 2009, the supply of toluene is expected to increase caused by the increased imports, and the demand for toluene will still be soft, but the increased price of imported toluene will give support to the domestic price, so the price of toluene is expected to be in deadlock.

Xylene

In August 2009, China's xylene prices increased considerably because players were optimistic to the coming market.
    As of September 8th, solvent grade xylene was trading at RMB6 650/t in eastern China, a rise of RMB500/t over a month before.
    In September 2009, the demand for xylene is expected to be soft and the supply will gradually fall caused by the decrease of imports, so the price of xylene is expected to be dull with fluctuation.

Styrene monomer

In early August 2009, because of the constant price rise of styrene monomer in the international market, China's styrene monomer price rose considerably.
   In mid August, in spite of the fluctuation of styrene monomer price in the international market, the domestic price remained unchanged at RMB9 000-9 300/t, supported by high production cost. In late August, the price of styrene monomer fell to RMB8 800/t.
    As of September 8th, styrene monomer was traded at RMB8 800-8 850/t in eastern China, a rise of RMB150-200/t over the previous month.  
    The supply of styrene monomer is expected to increase, which will restrict the price rise, but most players are optimistic to the future market, so the price of styrene monomer is expected to fluctuate with a price increase in September 2009.

MEG

In August 2009, China's MEG (monoethylene glycol) prices firstly rose considerably because of the price rise of crude oil in the international market, and then fell with fluctuation in response to the soft demand for MEG in downstream sectors.
   As of September 8th, MEG was traded between RMB5 950/t and RMB6 000/t in eastern China, a rise of RMB50/t over the previous month.
   In September 2009 the inventory of MEG is expected to remain at a relatively high level, but players are optimistic to the future market, so the price of MEG will probably fluctuate slightly.

Diethylene glycol

In early August 2009, despite high inventory, China's diethylene glycol prices were up considerably in response to the price rise of MEG and styrene monomer. In late September, because of the soft demand for diethylene glycol in downstream sectors, the price of diethylene glycol began to decrease.
    As of September 8th, diethylene glycol was trading between RMB5 400/t and RMB5 450/t in eastern China, an increase of RMB200/t over a month before.  
    The demand for diethylene glycol is expected to rise, but due to high inventory, the price of diethylene glycol is expected to fluctuate slightly in September 2009.

Phenol

In early August 2009, due to tense supply, China's phenol prices rose considerably. From mid to late August, the price of phenol fell slightly in response to the soft demand for phenol.
    As of September 8th, the bulk trading prices of phenol were RMB7 900-8 000/t at the ports of eastern China, an increase of RMB100/t from a month earlier, and in other regions of China, the bulk trading prices were up RMB300-400/t to RMB7 900-8 200/t.
    In September 2009, the supply of phenol is expected to be sufficient. However, because of the increased demand for phenol, the price will probably increase.

Acetone

In August 2009, China's acetone price was firstly dull in response to the slack demand then rose slightly because of the decreased inventory.
     As of September 8th, acetone was traded at RMB5 950-6 050/t in the ports of eastern China, a rise of RMB200-300/t over a month earlier.
     The demand for acetone is expected to go up, so the price will probably increase in September 2009.