【Introduction】：In July, downstream demand remained in the off-season, with usage roughly flat compared to June. Overall demand for C5 petroleum resin was still insufficient, local sales pressure was high, and the negotiation focus continued to weaken.
As of this Friday, cracking C5 in North China fell 100 yuan to 5,150 yuan/ton; East China was quoted at 5,150 yuan/ton; Northeast China at 4,800–5,510 yuan/ton; South China dropped 50/0 yuan to 4,950–5,150 yuan/ton, with some private-sector prices rebounding to 5,250–5,603 yuan/ton. Domestic dicyclopentadiene low-end prices dropped 200 yuan/ton, while high-end prices fell 400 yuan/ton to 7,000–7,600 yuan/ton. Raw material prices continued to weaken.
May to July is the traditional off-season for downstream demand. Meanwhile, the sharp rise in domestic C5 petroleum resin prices from March to April prompted downstream buyers to stockpile excessively, resulting in procurement volumes exceeding actual demand. First, previous inventories needed to be digested. Second, amid bearish expectations along the supply chain, market transaction volumes dropped sharply, with most purchases being small, sporadic orders. Third, downstream product prices also continued to decline, pushing transaction volumes to the lowest level in recent years.
Overall, raw material prices for cracking C5 and dicyclopentadiene continued to move lower at the bottom. This was driven by a sharp decline in international oil prices, weak end-user demand, low market transaction volumes, and persistent price declines. In the near term, downstream market transaction volumes remain low, manufacturers have insufficient orders, and C5 petroleum resin prices will continue to edge down slightly.
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