Weekly Lubricant & Chemical Report: Lubricants and Chemicals Market under the Shadow of JCPOA Negotiations

On Monday, 15th August, the price of crude oil was 94 US dollars, although the news from China indicated an increase in production and this increase in production supported the rise in the price of petrochemicals. 

This caused the products in Singapore and South Korea markets to rise. But the technical trend of crude oil showed the range of 90 to 95 US dollars for the price of oil and this range was still maintained at 91 US dollars. 

On 15th August, India reduced the price of its fuel oil by 13 US dollars, which caused the market conditions to face different signals. 

On the other hand, in Iran due to the JCPOA renegotiations, the parity price of the dollar against the Iranian Rial decreased by about 7% and caused all petrochemical products in the Middle East to increase in price. 

In the current situation where the market does not have serious support and the components of the price increase are not active, the price of recycled base oil in Iran is reported to be around 920 US dollars, paraffin wax price is about 1280 to 1300 US dollars, and the price of caustic soda flake FOB Bandar Abbas is reported to be around 620 US dollars.

China Caustic Soda Market Condition

Over the past week, under the influence of low trading prices of large enterprises in Dongying, the price of alkali products fell by almost 8 USD/MT (60 yuan/ton), and currently the prices of these main products remained stable.

On 15th August, in Shandong, supply-side enterprises started relatively smoothly.

From the perspective of the market outlook, the Shandong region is affected by the weak demand. 

It is expected that the market will remain stable these days with the possibility of a downward adjustment.

All together, the caustic soda market in China was weak and some companies reduced their prices due to their own conditions.

USA Caustic Soda Market Condition

According to news sources,  U.S. caustic soda exports fell in the first half of 2022.

During the second week of August 2022, the spot transactions were completed at $820/metric ton FOB USG (U.S. Gulf) in the USA.

Market sources said domestic and export caustic soda demand remained strong, but another reliable source said inquiries about the U.S. Gulf Coast output was rising, but generally supplies remained tight as producers focused on contract customers.

Caustic Soda Price (USA, China, Middle East)

This article was prepared by Mozhdeh Darbandizadeh, the account manager of Infinity Galaxy (www.infinitygalaxy.org).