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
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