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Shandong Landun Petroleum Resin Co., Ltd.
Tel:0635-7888808
Add:Guyun Industrial Park, Liaocheng City, Shandong Province

C5/C9 petroleum resin knowledge

C9/C5 petroleum resin's upward power failure, demand recovery is slow

Time:2021-11-30

Multiple negative pressures and slow recovery of downstream demand. Major economies such as the United States have generally adopted controversial loose monetary policies, which has led to the flood of liquidity in the international market; the political turmoil in North Africa, that is, the uncertainty brought by geopolitics, has become a flood of liquidity. The basic facts that the global recovery is slowing down, and an excellent excuse for the frantic influx of commodities. However, the price of any commodity cannot rise indefinitely. When the market releases certain reverse information, it is not difficult to understand that commodity prices will fluctuate weakly in the short term.

      From the fundamentals, the drop in commodity prices is not surprising in itself. The economic growth of developed economies such as the United States, the United Kingdom, and Japan is still weak, and the prospects for recovery in the euro zone are not optimistic. In addition, China and the Eurozone have launched tightening monetary policies to combat inflation, which will further slow down commodity demand and growth in related economies.

      *** The state's continuous heavy-handed regulation of the real estate market is the main reason for the cold in the real estate industry this year. Naturally, it has also formed an adverse impact on downstream industries such as house decoration. And housing decoration and other industries are the main consumer markets for paints and coatings, and the decline in demand has spread to the upstream C9 resin market, so it is inevitable that the peak season will not be prosperous.


Second, the domestic monetary policy has been continuously tightening. Since October 2010, the reserve ratio has been increased once a month, and the benchmark interest rate has been raised every two months. The reserve ratio has now risen to the historical level of 20%, and loans have appeared in downstream factories. Difficult and high cost issues, unintentional stocking under the pressure of tight capital liquidity.


Third, petroleum resins returned to historical highs. After the holiday, petroleum resins quickly broke through the resistance level of 10,000 yuan/ton under the impetus of raw materials, and the highest offer even exceeded 11,000 yuan/ton. High-priced petroleum resins have severely squeezed downstream profits and suppressed demand. The downstream parties resisted taking the goods or increased the amount of substitutes, and the transactions of petroleum resins were always at a low point.