Market price differentiation of petrochemical products
According to the latest report from the China Petroleum and Chemical Industry Association, the production of the country's petroleum and chemical industries maintained a stable growth trend in November. However, the growth rate of some key bulk petrochemical products slowed down. Out of 65 tracked products, 57 showed year-on-year growth, accounting for 87.7%, while the product sales rate reached 99.3%. Despite this positive trend, market prices showed significant differences—basic chemical raw materials faced tight supply conditions, leading to price increases, while fertilizer prices rebounded strongly. Meanwhile, organic chemical product prices fell across a large area.
In November, the balance between supply and demand in the petrochemical market remained generally stable, with reduced pressure in the refined oil market. Crude oil production was 15.314 million tons, up 1.0% year-on-year but down 3.1% month-on-month. Natural gas output rose by 16.4% year-on-year. Refined oil production increased steadily, reaching 16.54 million tons, with gasoline and diesel outputs rising by 4.7% and 6.1%, respectively. However, the growth of some major petrochemical products was constrained due to shifts in production focus. Ethylene and pure benzene outputs declined compared to October.
At the same time, high-energy-consuming and overcapacity products continued to grow. Soda ash, calcium carbide, and caustic soda outputs all saw significant year-on-year increases. Fertilizer and pesticide production also surged despite being off-season, driven by strong export demand. Urea output rose by 11.6% in November, and pesticide output increased by 25.1%.
With international crude oil prices continuing to rise, domestic energy costs have climbed, increasing production expenses for companies. The transmission of high oil prices to downstream industries is weakening, adding more pressure on businesses. Overall, market prices remained volatile, with 69% of tracked products seeing price increases and 31% declining. Organic chemical products experienced the most significant price drops.
Basic chemical raw material supplies were tight, causing sharp price increases. Sulfuric acid prices jumped 64% year-on-year, while sulfur reached an all-time high of 2,610 yuan, up 100.8%. Ethylene glycol prices also hit record levels, rising 63.7% annually. These trends reflect strong macroeconomic momentum in China.
Fertilizer prices generally increased, with urea showing a strong rebound. Urea prices rose to an average of 1,810 yuan in November, up 3.1% year-on-year. This was largely due to reduced international urea supply, lower export tax rates, and rising input costs such as coal and natural gas.
In contrast, organic chemical product prices fell significantly. Of the 174 tracked products, 54 saw declines, with 35 being organic chemicals. This indicates weakened transmission of high oil prices to downstream sectors, shrinking corporate profits, and intensified market competition.
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