More than 40% of chemical prices fell in May

More than 40% of chemical prices fell in May In May, the chemical market remained under pressure as prices continued to decline. According to recent industry data, over 44% of chemical product prices dropped during the month, while nearly 40% remained stable. Only a small fraction—around 16%—experienced price increases. This downward trend has raised concerns among industry participants about demand-side challenges. Analyst Zhang Ming highlighted that weak demand is currently the biggest issue facing the chemical sector. He noted that some products are expected to enter their export peak periods in the next two months, which could provide some relief to the market. Based on current trends, he predicts that the chemical market may stabilize by late June or early July, with a potential rebound expected in the third quarter. The chemical industry index hit a low point in early May, breaking below the 2012 level and dropping further to 921 points by May 30. Several key products saw significant price declines, including ammonium sulfate, n-butanol, crude oil, coking benzene, ethyl alcohol, DOP, pure benzene, and urea. However, certain products such as phenol, styrene, and glyphosate have maintained upward momentum for two consecutive months, showing resilience in specific segments of the market. In some sectors, the reduction in production due to plant shutdowns and maintenance has led to lower supply levels, which has helped stabilize prices. For example, propylene oxide and styrene plants entered their maintenance periods in May, contributing to tighter supply conditions. Additionally, cost pressures are being passed along the supply chain in some cases. The recent rise in epichlorohydrin prices, for instance, can be attributed to increasing raw material costs, particularly from ** and propylene, with manufacturers actively seeking to pass these higher costs onto downstream buyers. Overall, the chemical market remains volatile, but there are signs that stabilization and a gradual recovery may be on the horizon. Investors and industry players are closely watching for any indicators that could signal a shift in market dynamics.

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