From July 4th, the domestic isoprene market has experienced significant fluctuations and prices have fallen sharply. On July 13, the price of isoprene in East China was 14,300 yuan (t price, the same below), which was a steep drop of 900 yuan compared with 15,200 yuan in early July, which was beyond the expectation of market participants. The reasons for the drop in the price of isoamylene are mainly the following:

First, the isopentenyl market emerged from April to June with a wave of rising prices. The price is in a relatively high position and there is a callback on the technical level.

Second, isoprene is mainly used for the production of synthetic rubber, synthetic resins and terpenes, but also for the synthesis of pesticides, pharmaceuticals and other fine chemical products. The isoprene downstream product *** is mainly used in pesticides and pharmaceutical intermediates, volatile irritating odor, restricted by environmental protection requirements, some *** production plants are shut down, the market demand for isoamylene is obvious Decreased, there has been a trend of falling prices.

The third is the recent increase in the operating rate of domestic isopentene production plant, but the demand in the downstream market has shrunk. Under the circumstances of fierce market competition, the market has experienced a phased oversupply. In particular, Shanghai Petrochemical's annual output of isoprene was expanded to 10,000 tons. Isomene producers in Shandong Province are also expanding their capacity. The sharp increase in production capacity has created a certain amount of psychological pressure on market participants. The market pressure plate sharply increased and triggered an extraordinary increase. Alken prices fell.

Fourth, downstream producers have reduced the operating rate of the plant due to a significant increase in production costs, resisting the increase in the price of isoamylene, leading to a surge in inventories of isopentenyl producers and, to a certain extent, stimulating a drop in the price of isoamylene.

Fifth, the unexpected rebound in domestic credit data in June surpassed expectations, again triggering concerns about the central bank tightening credits. Downstream isopenene companies face liquidity difficulties and lack of confidence in buying. As market participants have apparently disagreed on the trend in the later period, some manufacturers have reduced their inventories in large quantities, which has directly contributed to the drop in the price of isoamylene.

Although the economic data in the second quarter announced recently is better than market expectations, it will form a certain psychological support for the isoprene market. However, judging from the technical indicators and the recent situation of concentrated expansion of isopenene production facilities, the pressure of competition in isoprene market has increased, prices are relatively high, and unfavorable factors such as a decrease in downstream demand have caused the recent decline in the price of isoamylene. space.