The Double Festival is approaching, and the industrial white oil market is not booming in the peak season.

According to Longzhong Information: September is coming to an end, and the domestic industrial white oil market has opened a downward channel. The market trend is uncharacteristically, and Jinjiu is not prosperous…

2019-2020 5# white oil Oil price chart

As of the end of September, the average price of domestic 5# industrial white oil fell to 3,900 yuan/ton, a decrease of 33.82% or 1,993 yuan/ton from the same period last year. Affected by the public health crisis at the beginning of 2020, the price of 5# white oil has been declining. As can be seen from the above figure, domestic 5# industrial white oil dropped from 5,800 yuan/ton at the beginning of the year to 3,900 yuan/ton at the end of the third quarter, a drop of as much as 1900 yuan/ton. In the second quarter, as the domestic epidemic was brought under control and downstream operations resumed production, domestic industrial white oil rebounded slightly, once rising to 4,500 yuan/ton. However, starting from May in the second quarter, domestic industrial white oil fell hard. Judging from historical data, domestic demand for diesel is strong around the National Day every year, which leads to shortage of small-viscosity white oil resources and rising prices. However, this year’s Jinjiu is not prosperous. First, domestic diesel demand is sluggish, and diesel prices continue to fall. Second, It is because the domestic supply of small-viscosity white oil is sufficient, and the contradiction between supply and demand is further imbalanced.

Domestic industrial white oil device operating rate trend chart

Supply side: Data from Longzhong statistics show that as of the end of September, the operating rate of domestic industrial white oil refineries was 56.55%, and there is currently no refinery. Plants are shut down, and some refineries are increasing supply.

Demand side: downstream stocking was not active before the holiday, and the focus was on on-demand purchases. Market transactions have not improved. Refineries also have a large task of arranging inventory before the holiday. In order to avoid inventory during the holiday, refineries The price has risen sharply, and the sales will be sold at a discounted price before the holiday.

There is sufficient supply in the industrial white oil field, and most manufacturers are preparing to stockpile stocks before the festival to facilitate the shipment of goods. With the Double Festival approaching, the market trading atmosphere may hardly change significantly, and the price is expected to be in the range of 3,700-3,750 yuan/ton.