Chemical product prices seek new directions in shocks

Recently, the price of chemical products has shown a trend of a correction after prices have risen sharply. The game of macroeconomic pessimism and excess liquidity pressure will affect the price trend in the future. Chemical product prices will seek new directions in the fluctuations.

In terms of output value growth, in July, the production of specialty chemicals, pesticides, and basic chemical raw materials grew rapidly; the output value of fertilizer manufacturing and rubber products increased by about 20.3% year-on-year, and the growth rate decreased by 3.8% and 0.3% respectively compared with June.

The most recent data released show that the economic growth of major economies in the world has declined to different degrees. The U.S. economic recovery still faces greater resistance. Among the euro zone, only the German economy has maintained a relatively rapid growth, and other countries still have low economic growth.

The pressure caused by the excess liquidity of funds remains large, and as long as there is a large amount of funds, the prices of commodities such as oil will have a rising momentum. At present, there are changes in the direction of international policies, from the withdrawal of economic stimulus plans to the maintenance of quantitative easing monetary policy. Our government has repeatedly stated that it wants to maintain the current moderately loose monetary policy. From the rise in the price of Shanghai Tianjiao **, we can see that the funds boost the price. For example, Hujiao’s several upswings since late July have been accompanied by a substantial increase in positions, of which the highest historical record of 425,000 contracts was recorded on August 19, and the price of that day’s ** has also risen to the latest high.