Last week, the domestic chemical product market continued to experience a downward trend, with the overall decline further expanding compared to the previous week. Analysis of the market trend of some sub indices
1. Methanol
Last week, the methanol market accelerated its downward trend. Since last week, the coal market has continued to decline, cost support has collapsed, and the methanol market is under pressure and the decline has increased. Moreover, the restart of the early maintenance equipment has led to an increase in supply, leading to a strong bearish market sentiment and exacerbating the market downturn. Although there is a strong demand for replenishment in the market after several days of decline, overall market demand remains weak, especially as downstream markets enter a seasonal off-season, making it difficult to alleviate the sluggish methanol market situation.
By the afternoon of May 26, the methanol market price index in South China had closed at 933.66, down 7.61% from last Friday (May 19).
2. Caustic soda
Last week, the domestic liquid alkali market first rose and then fell. At the beginning of the week, boosted by the maintenance of chlor alkali plants in North and East China, the demand for stock at the end of the month, and the low price of liquid chlorine, the market mentality improved, and the mainstream market of liquid alkali rebounded; However, the good times did not last long, and there was no substantial improvement in downstream demand. The overall market trend was limited and the market has declined.
Last week, the domestic flake alkali market was mainly on the rise. Due to the decline of the market price in the early stage, the continuous low price has stimulated some downstream players’ demand for replenishment, and the manufacturer’s shipment has improved, thus boosting the market trend of flake caustic soda. However, with the rise of market prices, market demand is again constrained, and the mainstream market continues to push up weakly.
As of May 26th, the South China caustic soda price index closed at 1175
02 points, down 0.09% from last Friday (May 19th).
3. Ethylene glycol
Last week, the decline in the domestic ethylene glycol market accelerated. With the increase in the operating rate of the ethylene glycol market and the increase in port inventory, the overall supply has significantly increased, and the market’s bearish attitude has intensified. Moreover, the sluggish performance of commodities last week has also led to an increase in the pace of decline in the ethylene glycol market.
As of May 26th, the ethylene glycol price index in South China closed at 685.71 points, a decrease of 3.45% compared to last Friday (May 19th).
4. Styrene
Last week, the domestic styrene market continued to decline. At the beginning of the week, although international crude oil rebounded, there was a strong sense of pessimism in the actual market, and the styrene market continued to decline under pressure. Especially, the market has a strong bearish mentality towards the domestic chemical market, which has led to increased shipping pressure on the styrene market, and the mainstream market has also continued to decline.
As of May 26th, the styrene price index in South China closed at 893.67 points, a decrease of 2.08% compared to last Friday (May 19th).

Aftermarket analysis
Although the US inventory fell sharply this week, due to the strong demand in the US in the summer, and the OPEC+production reduction also brought benefits, the US debt crisis has not yet been resolved. In addition, the European and American economic recession expectations still exist, which may adversely affect the trend of the international crude oil market. It is expected that there will still be downward pressure on the international crude oil market. From a domestic perspective, the international crude oil market is experiencing insufficient upward momentum, limited cost support, and the domestic chemical market may remain weak and volatile. Moreover, some downstream chemical products have entered the off-season of summer demand, and the demand for chemical products is still weak. Therefore, it is expected that the rebound space in the domestic chemical market is limited.
1. Methanol
Recently, manufacturers such as Xinjiang Xinye have planned maintenance, but multiple units from China National Offshore Chemical Corporation, Shaanxi, and Inner Mongolia have plans to restart, resulting in sufficient supply from mainland China, which is not conducive to the trend of the methanol market. In terms of demand, the enthusiasm for the main olefin units to start construction is not high and remains stable. In addition, the demand for MTBE, formaldehyde, and other products has slightly increased, but the overall demand improvement is slow. Overall, it is expected that the methanol market will remain weak and volatile despite sufficient supply and difficult demand to follow up.
2. Caustic soda
In terms of liquid alkali, there is an upward momentum in the domestic liquid alkali market. Due to the positive impact of maintenance by some manufacturers in the Jiangsu region, the liquid alkali market has shown upward momentum. However, downstream players have limited enthusiasm for receiving goods, which may weaken their support for the liquid alkali market and limit the rise of mainstream market prices.
In terms of flake alkali, the domestic flake alkali market has limited upward momentum. Some manufacturers still show signs of pushing up their shipping prices, but the actual transaction situation may be constrained by the mainstream market’s upward trend. Therefore, what are the restrictions on the market situation.
3. Ethylene glycol
It is expected that the weakness of the ethylene glycol market will continue. The rise of the international crude oil market is limited, and cost support is limited. On the supply side, with the restart of early maintenance equipment, there are expectations of an increase in market supply, which is bearish on the trend of the ethylene glycol market. In terms of demand, polyester production is improving, but the pace of growth is slow and the overall market lacks momentum.
4. Styrene
The expected upward space for the styrene market is limited. The international crude oil market trend is weak, while the domestic pure benzene and styrene markets are weak, with weak cost support. However, there is little change in the overall supply and demand, and the styrene market may continue to experience minor fluctuations.