In May, the characteristics of structural changes in the price of means of production increased: First, the price of energy products rose rapidly and rose sharply. Among them, due to the increase in the price of coal and refined oil products, which pushed the total price level in May, the growth rate was 0.9% and 5.1% higher than the same period last year. Second, the price increase of chemical products has significantly increased. The month-on-year and the year-on-year price increases were 5.3% and 21%, respectively, which were 3.6 and 10 percentage points higher than the increase in April, affecting the overall price level in May and the year-on-year increase of 0.9 and 3.6 percentage points respectively. In addition, the increase in steel prices continued unabated, non-ferrous metal prices fell more, timber prices remained basically stable, building materials prices fell slightly.
Coal prices rose sharply In May, under the combined influence of many factors, China's coal market prices continued to rise sharply. First, due to the dual effects of production capacity, market demand contradiction, and the depreciation of the US dollar, international coal prices have risen sharply this year. The soaring oil prices and coal prices in the international market have also strongly supported the continued rise in domestic coal prices. Second, with the gradual arrival of the peak period of coal use in summer and the rapid development of downstream enterprises, the market demand is strong. At the same time, the state has vigorously cracked down on the production of illegal small coal mines, resulting in a reduction in the overall coal market supply and a tight supply. Coal prices have soared. In addition, the earthquake relief and transport tensions have also aggravated the contradiction between coal supply and demand.
In May, the average price in the coal market increased by 9% month-on-month and 45% year-on-year; from January to May, the cumulative year-on-year increase was 33.2%. Among them, the month-on-month ratio of bituminous coal rose by 9.2%, month-on-year increase of 45.6%, anthracite rose 8.5% month-on-month. However, under the influence of tight coal stocks in China and the Wenchuan earthquake in Sichuan, the National Development and Reform Commission issued notices requesting that qualified small coal mines be resumed as soon as possible, which is expected to ease the supply of domestic coal market and slow the rise of coal prices.
The price of refined oil products has risen high In May, international crude oil prices have rewritten historical highs at an alarming rate, which has become the main pressure for the adjustment of domestic refined oil prices. Earthquake relief also increased the demand for refined oil. Due to power outages in many areas in the disaster-stricken areas, only generators can be used to generate electricity. This will consume large amounts of fuel oil and will affect the domestic supply of refined oil to some extent. Since November last year, international oil prices have continued to soar, while domestic oil prices have remained static. The spread between the two has increased, making the supply of domestic refined oil, especially diesel, tighter.
In May, the domestic refined oil market price rose by 3.8% from the previous month and rose by 23.3% year-on-year; from January to May, the cumulative increase was 17.3% year-on-year. Among the major varieties monitored, diesel price rose by 5.6% month-on-month and 29.4% year-on-year; gasoline prices rose by 1% month-on-month and 11.8% year-on-year; fuel oil prices rose by 5% month-on-month and 33.2% year-on-year. Taking into account the soaring oil prices in the international market and the arrival of the domestic summer season, it is expected that the demand for the gasoline terminal market will also increase significantly. Coupled with the earthquake disaster in the Sichuan region, the local refined oil market has a large gap, and the refined oil market prices continue to rise.
The increase in chemical products increased significantly In May, affected by the sharp increase in the prices of coal and petroleum and other energy and basic raw materials, the prices of plastics and aromatics products and inorganic chemical products such as “triacids and alkalis†rose more significantly. The average price of chemical products in the month rose 5.3% month-on-month and 21% year-on-year. From January to May, the average price rose 12.3% year-on-year.
Among them, natural rubber production in the rubber-producing countries suffered from heavy rain output, the international market supply and demand tightened, prices have been rising. In May, domestic natural rubber prices rose 8.6% month-on-month and 20.7% year-on-year; synthetic rubber rose 2.9% month-on-month and 21.2% year-on-year. The market prices of plastic raw materials and aromatic hydrocarbons products were affected by the continuous high prices of raw materials such as international crude oil prices, and most of the varieties exhibited upward market conditions. For example, the price of polyethylene rose by 2.4% qoq, PVC rose by 1.9%, polypropylene by 9%, pure benzene rose by 2.8%, toluene by 8.9%, and xylene by 7.4%.
In inorganic chemical products, due to the continued rise in energy prices and raw materials such as sulfur and crude salt, macroeconomic policies and cost factors have driven the market prices of “triacids and alkalis†to continue to rise. In May, the price of sulfuric acid rose by 28.9% and 158.2% month-on-month, respectively; the price of hydrochloric acid rose by 4% month-on-month and rose by 9.9% year-on-year; the price of soda ash increased by 1.9% and 25.3% year-on-year, respectively; the price increase of caustic soda was 0.8% respectively. And 10.2%.
Since the beginning of this year, the continued rise in the prices of energy and basic raw materials has dampened the market demand to a certain extent, resulting in slower growth in the production of steel products, refined oil and some chemical products, and the situation of tight supply in the market. It is expected that in June, the main production materials market will continue to maintain the basic pattern of rising, chemical companies must actively respond.
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