Weekly Report of IIR Market I、 IIR Plants: This week, IIR units operated normally with low production rate for top grade IIR in Yanshan PC and Sinopec Beijing Sales Branch had steadied IIR (1751) price. Sales were thin amid normal inventory in the factory recently. Market Reference Prices PCs Unit: Yuan/mt Spec. Ex-works Price Change Note Eligible 1751 57,600 ---- Normal operation Yanshan PC Top-grade 1751 57,300 ---- Normal operation II、IIR CIF CMP Trend: Russian general IIR (1675N) was quoted around $ 7,300/mt, CIF CMP for prompt shipment; CIF S. E. Asia quotation was a bit higher around $ 7,500/mt amid thin trades in domestic markets. Bromized IIR (232) was around $ 12,000/mt, CIF CMP; chloridized IIR (139) capped at $ 10,800-11,000/mt, CIF CMP. Sources said that, there will be lot of Russian HIIR cargos arriving in Chinese ports during H2 July and Aug. Russian T plant is being in maintenance. II、 IIR Markets: Domestic general IIR markets were plain for the moment. Both Yanshan PC IIR (1751) and Russian IIR (1675N) were in abundant supply, leading to prices falling. However, the price inversion between RMB offer and USD quotations still exists; the market prices could be flat. The offers for JSR IIR (268), LANXESS IIR (301) and EXXON IIR (268) stayed at high level stably amid tight supply. Domestic HIIR markets were in tight supply and quotations were tentatively reached new level. HIIR markets were seen bullish; however, the high price restrained demand and trades. Sources said that, there will be lot of Russian HIIR cargos arriving in Chinese ports during H2 July and Aug, and supply will expand then. N-China Markets: This week, supply of Yanshan PC IIR (1751) and Russian IIR (1675N) was abundant. Transactions of Yanshan PC IIR (1751) and Russian IIR (1675N) were ordinary due to weak demand. Supply for JSR IIR (268), EXXON IIR (268) and LANXESS IIR (301) was not abundant and market prices stayed at high level. Market Reference Prices Unit: Yuan/mt Spec. Market Prices Remark Yanshan PC eligible IIR 1751 Around 58,500 Few goods on top grade Russian IIR 1675N 58,000-58,500 Lower offers for trades EXXON Chloridized IIR 1066 110,000 Lacking resource EXXON Chloridized IIR 1068 110,000 Lacking resource JSR IIR 268 73,000 Tight supply Bayer IIR 301 74,000 Tight supply Russian bromized IIR 232 100,000-102,000 Tight supply; lower offers for trades Yanshan Region: Yanshan PC IIR (1751) market was unmoved with offer around Yuan 58,000/mt in surrounding areas of Yanshan. Top grade products were limited and most goods were eligible ones in local markets with few quotations heard below Yuan 58,000/mt. Market Reference Prices Unit: Yuan/mt Spec. Market Prices Remark Eligible 1751 in Yanshan PC 58,000 Common sales Top-grade 1751 in Yanshan PC 58,000-58,500 Lacking resource E-China Market: This week, market prices for general IIR (1675N) remained unmoved and few cargos were dealt around Yuan 57,500-57,700/mt; IIR (268 & 301) mainly fluctuated at high level amid tight supply. HIIR resource was lacking and prices reached to new high tentatively, however, trades were limited in domestic markets. Market Reference Prices Unit: Yuan/mt Spec. Market Prices Remark Top-grade 1751 in Yanshan ---- ---- PC Russian BK-1675N 58,000-58,500 Few lower at 57,500 JSR IIR 268 Around 73,000 ---- LANXESS IIR (301) 73,000-74,000 ---- Russian IIR (CBK-139) 97,000-98,000 Lower price for trades EXXON IIR (1068) Around 110,000 Lower price for trades Russian IIR (BBK-232) 100,000-102,000 Lower price for trades LANXESS IIR (2030) Around 110,000 ----- S-China Market IIR market went inactively in S-China. General IIR price mainly steadied amid ordinary demand from downstream; HIIR market kept uptrend amid tight supply. Inner players held cautious and bullish sentiment to the following market. Market Reference Prices Unit: Yuan/mt Spec. Market Prices EXXON IIR (1066) ---- EXXON IIR (1068) ---- Lacking supply EXXON IIR (2211) ---- Lacking supply EXXON IIR (2244) ---- Lacking supply JSR IIR (268) 72,000-74,000 LANXESS IIR (301) 73,000-75,000 VI、IIR Market Summary and Forecast: Remark Crude oil price broke $ 140/barrel which supported IIR market. Due to different supply and demand, there was far price distance between general IIR and HIIR. Demand for General IIR was weak due to high cost pressure, partial small or mid downstream plants stop production or in semi-stop. Inner players estimated that, IIR market would be in dull consolidation under the support of USD market and crude oil. As there is no capacity for HIIR in China, HIIR market continued climbing amid lacking resource, though the high price restrained demand and trades. Domestic demand of HIIR kept uptrend; supply falls short of demand; CIF CMP offers stayed at high level, all above factors brought motivation for HIIR ahead.