CCM: Furfural: export price falls to record low in May 2016 08-08-2016

According to China Customs, export price of furfural (HS code: 9321200) experienced fluctuation in the past two years:

2015 – downtrend

2016 – rebounded in Feb. and then fell again to USD972.85/t in May, down 24.9% YoY and 3.6% MoM



Source: Baidu


Generally, export price fluctuates along with market price. In June, the market price of furfural amounted to USD962.25/t, down 28.6% YoY, according to CCM's price monitoring.

 

Exports of furfural from China, Jan. 2014-May 2016


Source: China Customs


Market price of furfural in China, Jan. 2014-June 2016


Source: CCM



 

Data from China Customs show that export volume of furfural rose slightly in May, being 1,199 tonnes, up 24% MoM but down 47% YoY. In fact, export volume showed a downtrend in year 2016 – a total export volume reached 8,965 tonnes in Jan.-May, down 20%+ YoY. Fators behind the falling export volume are:

 

1. In H1 2016, the global economy suffered from downward pressure – demand from resin and foundry industries remained weak, affecting the furfural export from China.

 

2. International crude oil price still keeps low, although it slightly rebounds in 2016. According to the New York Mercantile Exchange, the Brent oil price was about USD48/bbl in May, down 26.4% YoY, pulling down the price of phenolic resin, substitute for furan resin (main downstream product for furfural). Losing price advantage, phenolic resin demanded less furfural.

 

3. The stricter environmental requirements affected the export. China's many local environmental departments ordered hazardous chemical manufacturers to make equipment upgrading and transformation around May. Production suspension affects the export of furfural to some extent.

 

Some manufacturers have resumed production at the end of June, which spurred up the domestic supply. Nevertheless, affected by some negative factors like "Brexit", the development pace of global economy may further slow down in H2 2016, which will reduce the demand for furfural. What's more, the third quarter of a year is the slack season for furfural export in China. Therefore, CCM predicts that the export volume of furfural will keep low in the future.

 

This article comes from Corn Products China News 1607, CCM



 

About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.

 

For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.

 

Tag: furfural   corn

 

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