Background
China’s solvent oil prices recorded big rises and falls in 2011.
Domestic refineries adjusted down solvent oil output ratios while lifting gasoline outputs during the first half of the year for fear of gasoline shortage. Thanks to lower outputs, domestic prices of regular solvent oils, aromatic solvents and dearomatic solvents went up and hit historic high since 2008.
Demand was weakening in the second half of the year under the backdrop of European and American debt crises and disturbance in the Middle East. Prices thus kept downtrend. As a result, domestic large producers cut operation rates and some small ones were forced to halt production.
Despite the declines, solvent oil prices were still at relatively high levels. So most downstream buyers turned to off-spec solvent oils as alternatives. The demand for 200# solvent oils recorded most notable declines.
Highlights
This Report is based on C1’s independent research and official statistics from the National Bureau of Statistics, the Ministry of Commerce, the General Administration of Customs as well as the National Development and Reform Commission. It includes:
Introduction to supply, demand, imports, price trends, and production facility construction and expansions in China’s solvent oil markets (including regular solvent oil market, dearomatic solvent market, high boiling point aromatic solvent market, hexane market and white oil market) in 2011.
Updates on hot issues in China’s 2011 solvent oil market.
Analyses into the domestic off-spec solvent oil market, the white oil market and the solvent blendstocks market
Excerpt from the Report:
Domestic solvent oil apparent consumption showed downtrend during 2011.
Domestic refineries adjusted down output ratios of 6#, 120# and 200# solvent oils and lifted distillates outputs as Sinopec encouraged distillate production for several months in the year. Lower supplies spurred up domestic solvent oil prices to record high since 2008.
Although prices dropped subsequently, they were still at high levels. The downstream users thus showed low acceptability. They turned to cheaper products as alternatives, resulting in lower consumption of standard solvent oils.
Table of Contents
1. CHINA’S SOLVENT OIL MARKET
1.1 Solvent Oil Demand
1.1.1 Apparent Consumption of 6#, 120# and 200# Solvent Oils in 2007-2011
1.1.2 Apparent Consumption of 6#, 120# and 200# Solvent Oils & GDP Elasticity (2007-2011)
1.1.3 Demand Forecast of 6#, 120# and 200# Solvent Oils in 2012-20161.2 Solvent Oil Production
1.2.1 Domestic Production of 6#, 120# and 200# Solvent Oils in 2007-2011
1.2.2 Domestic Production of 6#, 120# and 200# Solvent Oils by Region in 2011
1.2.3 Domestic Production of Off-Spec Solvent Oils in 2011
1.2.4 Expansion of Solvent Oil Production Facilities in 2011-20161.3 Solvent Oil Price Trend in 2011
1.3.1 Price Comparison: Solvent Oils 6#, 120# vs. Naphtha in China (2011)
1.3.2 Price Comparison: Solvent Oils 6#, 120# vs. 93-Ron Gasoline in China (2011)
1.3.3 Price Comparison: Solvent Oil 200# vs. Zero Pour Point Gasoil in China (2011)
2. CHINA’S DEAROMATIC SOLVENT MARKET
2.1 Dearomatic Solvent Demand
2.1.1 Apparent Consumption in 2007-2011
2.1.2 Dearomatic Solvent Apparent Consumption & GDP Elasticity (2007-2011)
2.1.3 Dearomatic Solvent Demand Forecast in 2012-20162.2 Dearomatic Solvent Production
2.2.1 Domestic Production in 2007-2011
2.2.2 Dearomatic Solvent Production by Region in 2011
2.2.3 Dearomatic Solvent Production by Producer in 2011
2.2.4 Expansion of Dearomatic Solvent Production Facilities in 2011-2016
2.3 Dearomatic Solvent Imports
2.3.1 Imports in 2007-2011
2.3.2 Imports Forecast for 2012-2016
2.4 Dearomatic Solvent Price Trend
2.4.1 Price Comparison: Dearomatic Solvent D80 vs. Naphtha (2011)
2.4.2 Price Comparison: Dearomatic Solvent D80 vs. Gasoil (2011)
3. CHINA’S WHILE OIL MARKET: REVIEW & OUTLOOK
3.1 White Oil Demand
3.1.1 Apparent Consumption in 2007-2011
3.1.2 Apparent Consumption & GDP Elasticity (2007-2011)
3.1.3 Demand Forecast in 2012-2016
3.2 White Oil Supply
3.2.1 Domestic White Oil Production in 2007-2011
3.2.2 Production of Industrial White Oil in 2011
3.2.3 Production of Food-Grade and Cosmetics-Grade White Oils in 2011
3.2.4 Production of White Oil Materials in 2011
3.2.5 Expansion of White Oil Production Facilities in 2011-2016
3.3 White Oil Imports
3.3.1 White Oil Imports Review in 2007-2011
3.3.2 White Oil Imports by Source in 2007-2011
3.3.3 Major Importers of White Oils in China (2011)
3.3.4 White Oil Imports Forecast in 2012-2016
3.4 While Oil Price Trend
3.4.1 Prices of Industrial White Oils in 2010
3.4.2 Prices of White Oil Materials
3.4.3 Prices of Cosmetics-Grade & Food-Grade White Oils
4. CHINA’S AROMATIC SOLVENT MARKET
4.1 Aromatic Solvent Demand
4.1.1 Apparent Consumption in 2007-2011
4.1.2 Aromatic Solvent Apparent Consumption & GDP Elasticity (2007-2011)
4.1.3 Aromatic Solvent Demand Forecast in 2012-2016
4.2 Production of Blendstocks for Aromatic Solvent
4.2.1 C9, C10 Output in 2007-2011
4.2.2 C9, C10 Production in 2007-2011
4.2.3 C9, C10 Imports in 2007-2011
4.2.4 C9, C10 Import Forecast in 2012-2016
4.3 Aromatic Solvent Supply
4.3.1 Aromatic Solvent Production in 2007-2011
4.3.2 Aromatic Solvent Production - by Region (2011)
4.3.3 Aromatic Solvent Production - By Producer (2011)
4.3.4 Expansion of Aromatic Solvent Production Facilities in 2011-2016
4.4 Aromatic Solvent Imports
4.4.1 Imports in 2007-2011
4.4.2 Imports Outlook in 2012-2016
4.5 Aromatic Solvent Price Trend in 2011
4.5.1 Price Comparison: 100#, 150# Aromatic Solvent vs. C10 (2011)
4.5.2 Price Comparison: 100#, 150# Aromatic Solvent vs. Xylene (2011)
5. CHINA’S HEXANE MARKET
5.1 Hexane Demand
5.1.1 Apparent Consumption in 2007-2011
5.1.2 Hexane Apparent Consumption & GDP Elasticity (2007-2011)
5.1.3 Hexane Demand Outlook in 2012-2016
5.2 Hexane Production
5.2.1 Domestic Production in 2007-2011
5.2.2 Hexane Production - by Producer (2011)
5.2.3 Expansion of Hexane Production Facilities in 2011-2016
5.3 China’s Hexane Import Market in 2011
5.4 Price Comparison: Hexane vs. Naphtha (2011)
6. HOT ISSUES IN 2011
6.1 Impacts of Government’s Tight Monetary Policy on Domestic Solvent Oil Production Pattern
6.2 Launch of First Railway for Aromatics Solvent Transportation
6.3 Sinopec’s Suspension of Gasoil, Gasoline Outsourcing Dampens Domestic Demand for Solvent Oils
6.4 Sinopec Encourages Gasoil, Gasoline Production; Solvent Oil Prices Firm
6.5 Price Controlling Policies in Edible Oil Market Cripple Hexane Demand
6.6 New Jet Pricing Mechanism to Signal Linkage of Domestic Dearomatic Solvent Prices with International Prices
