Since entering the fourth quarter, both buyers and sellers are at the lowest point of this year's historical transaction, and in the current overall economic downturn, the fatigue trend is further expanding, which is worrying and at the same time quite helpless. The following two aspects will look at the dilemma facing the domestic biodiesel market.
In the first dilemma, demand is shrinking. As we all know, in the past two years, the pace of upgrading domestic refined oil products has accelerated, and the cost of refining enterprises has increased significantly. At the same time, the cost pressure of blending oil has also risen, but domestic demand for terminals has shrunk severely. At this time, the news of quality inspection in various regions is endless. The low price, heavy volume and other means rely on survival to regulate oil companies are facing a huge survival test. In this context, more than 60% of domestic biodiesel relies on the oil market to circulate in the world, and many companies are basically in a “vacuum†this year. The sound of whether or not to start construction depends on market demand. On the other hand, the PPI data released by the National Bureau of Statistics in recent years also highlights the severe situation of the decline in domestic diesel demand, and how to resolve the problem of overcapacity has become the focus of current industry players.
In the second dilemma, the international oil market is weak. Since the beginning of this year, market practitioners have been extremely cautious in the face of the gradual negative international crude oil. From the perspective of market supply and demand, domestic biodiesel demand still has great potential. However, due to low market acceptance and excessively strong external factors, the quality of the business has undergone qualitative changes, from cautious to excessive caution to basic abandonment. It is true that this year the domestic real economy is facing a key point of transformation. However, the transformation of domestic traditional industries after decades of baptism is time-consuming and subtle. The reforms that are carried out in one fell swoop will definitely hurt the current domestic economy. The turn of the gear is particularly important, so the fact that the demand for biodiesel is shrinking is difficult to change, but the pessimistic outlook on the market is not conducive to the healthy development of market purchases and sales. In addition, "God closes a door and opens a window for you", it only takes time to settle and accumulate power.
Under the current bearish situation, the domestic biodiesel market is difficult to make a difference in the later period (in the short term), especially when the international crude oil futures market continues to bearish expectations, the market practitioners must be very cautious in their enthusiasm for operation. It is understood that under the current environmental protection, safety and other high attention, the speed of oil product upgrade suggests that the quality index of biodiesel will be placed in the first place in the later market. From the current situation, the development of domestic biodiesel industry will usher in a new Tests and opportunities.
In the first dilemma, demand is shrinking. As we all know, in the past two years, the pace of upgrading domestic refined oil products has accelerated, and the cost of refining enterprises has increased significantly. At the same time, the cost pressure of blending oil has also risen, but domestic demand for terminals has shrunk severely. At this time, the news of quality inspection in various regions is endless. The low price, heavy volume and other means rely on survival to regulate oil companies are facing a huge survival test. In this context, more than 60% of domestic biodiesel relies on the oil market to circulate in the world, and many companies are basically in a “vacuum†this year. The sound of whether or not to start construction depends on market demand. On the other hand, the PPI data released by the National Bureau of Statistics in recent years also highlights the severe situation of the decline in domestic diesel demand, and how to resolve the problem of overcapacity has become the focus of current industry players.
In the second dilemma, the international oil market is weak. Since the beginning of this year, market practitioners have been extremely cautious in the face of the gradual negative international crude oil. From the perspective of market supply and demand, domestic biodiesel demand still has great potential. However, due to low market acceptance and excessively strong external factors, the quality of the business has undergone qualitative changes, from cautious to excessive caution to basic abandonment. It is true that this year the domestic real economy is facing a key point of transformation. However, the transformation of domestic traditional industries after decades of baptism is time-consuming and subtle. The reforms that are carried out in one fell swoop will definitely hurt the current domestic economy. The turn of the gear is particularly important, so the fact that the demand for biodiesel is shrinking is difficult to change, but the pessimistic outlook on the market is not conducive to the healthy development of market purchases and sales. In addition, "God closes a door and opens a window for you", it only takes time to settle and accumulate power.
Under the current bearish situation, the domestic biodiesel market is difficult to make a difference in the later period (in the short term), especially when the international crude oil futures market continues to bearish expectations, the market practitioners must be very cautious in their enthusiasm for operation. It is understood that under the current environmental protection, safety and other high attention, the speed of oil product upgrade suggests that the quality index of biodiesel will be placed in the first place in the later market. From the current situation, the development of domestic biodiesel industry will usher in a new Tests and opportunities.
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