Chemicals diverged sharply in the week of Sep 7–11 despite oil holding above $100
🧪 China’s chemical market ended the week broadly firmer, with 40 products rising, 3 falling and 23 unchanged on Sep 11, for an average gain of 1.72%. Isopropanol rose 7.9%, n-butanol 7.3%, PX 6.7% and propylene oxide 6.4%, showing that cost pressure was concentrated in aromatics, solvents and olefin-linked feedstocks.
📈 PX climbed to 9,600 yuan/ton, supported by high crude prices and relatively tight feedstock supply. In polyurethane, flexible foam polyether rose 10.5%, PO gained 5.9% and polymeric MDI increased 2.9%, suggesting part of the upstream cost pressure is starting to pass into products used in furniture, insulation and autos.
🏭 The rally was not uniform across the sector. Caustic soda and soda ash were largely unchanged, while PE and PP remained constrained by new Chinese capacity and still-soft downstream demand. Oil above $100 has therefore not translated into a broad-based polymer price cycle.
⛽ Methanol also showed high sensitivity to geopolitics, with Chinese futures touching nearly 3,900 yuan/ton on Sep 10 before falling about 7% to 3,600 the next session. The move suggests the Iran and Hormuz premium can unwind faster than pricing in downstream polymers.
🔎 For Sep 14–18, PX, methanol and the PO–polyether chain may remain highly responsive to Middle East supply developments. PE and PP are likely to lag if new capacity continues to come online while end-user demand remains subdued.
#Chemicals
$TSLA
🧪 China’s chemical market ended the week broadly firmer, with 40 products rising, 3 falling and 23 unchanged on Sep 11, for an average gain of 1.72%. Isopropanol rose 7.9%, n-butanol 7.3%, PX 6.7% and propylene oxide 6.4%, showing that cost pressure was concentrated in aromatics, solvents and olefin-linked feedstocks.
📈 PX climbed to 9,600 yuan/ton, supported by high crude prices and relatively tight feedstock supply. In polyurethane, flexible foam polyether rose 10.5%, PO gained 5.9% and polymeric MDI increased 2.9%, suggesting part of the upstream cost pressure is starting to pass into products used in furniture, insulation and autos.
🏭 The rally was not uniform across the sector. Caustic soda and soda ash were largely unchanged, while PE and PP remained constrained by new Chinese capacity and still-soft downstream demand. Oil above $100 has therefore not translated into a broad-based polymer price cycle.
⛽ Methanol also showed high sensitivity to geopolitics, with Chinese futures touching nearly 3,900 yuan/ton on Sep 10 before falling about 7% to 3,600 the next session. The move suggests the Iran and Hormuz premium can unwind faster than pricing in downstream polymers.
🔎 For Sep 14–18, PX, methanol and the PO–polyether chain may remain highly responsive to Middle East supply developments. PE and PP are likely to lag if new capacity continues to come online while end-user demand remains subdued.
#Chemicals
$TSLA
