**Energy Chemicals and Glass Prices Rise on Crude Oil Momentum**
The domestic energy and chemical markets continued their upward trend, closely following the rise in crude oil prices. Across the commodity market, energy-related products saw broad gains, with glass futures leading the way. The main 1309 contract for glass approached the daily limit, closing up 2.84% on the day and hitting a new historical high after two consecutive days of gains.
On February 4, the newly listed glass contract on the Zhengzhou Commodity Exchange reached another record high. The main 1309 contract closed at 1,632 yuan per ton, rising by 2.84%. Trading volume surged to 2.403 million contracts, an increase of 943,000 hands compared to the previous day. Open interest also rose sharply, increasing by over 60,000 contracts to 466,000.
Ma Shichao, an analyst from Guan Tongxi, noted that after a strong rally in the third session, trading volume remained high, and the long-short imbalance persisted. Although there was no significant change in long positions, short positions increased, indicating that retail investors believe the price has reached a peak and expect a potential decline. However, the bulls have not yet taken large profits, suggesting that the upward momentum is still strong. It is expected that glass prices will continue to rise in the coming days, though a minor correction may occur during this period. A full reversal, however, seems unlikely.
In the spot market, conditions remain stable, with no major positive developments anticipated before the Lantern Festival. While the overall glass market remains strong, it hasn't moved far from its weak pattern. Contracts for 03 and 04 showed relatively smaller gains, and as time passes, this trend will become more evident.
Zhai Zailiang, another analyst, pointed out that while Yong’an, a major long-position holder, has not reduced its holdings, the current glass market faces high turnover and fewer positions before deals. The recent price increases are still primarily driven by fund inflows.
Crude oil prices surged by 5.66% in January, maintaining levels above $97 per barrel. This rise was largely fueled by an increase in long positions. According to the latest data from the CFTC, as of the week ending January 29, WTI crude oil had a total of 1,553,636 contracts, up 61,769 from the previous week. Non-commercial net long positions reached 267,989 contracts, an increase of 21,886. The net long position stood at 207,054 contracts, up 9,646. Over the past month, total positions increased by 80,291, non-commercial net longs by 69,911, and managed funds’ net longs by 70,581.
Yao Yao, an analyst from New Lake, attributed the recent oil price surge to macroeconomic and geopolitical factors. The European economy, still struggling with the debt crisis, has shown some improvement, but tensions in Egypt, Israel, and Syria have raised concerns about Middle East stability. Combined with the CFTC’s data, the crude oil market currently shows stronger support than short positions.
From a supply and demand perspective, distillate demand remains strong due to winter, while gasoline demand stays low. U.S. crude oil production continues to hover around 7 million barrels per day. Meanwhile, third-party surveys show that OPEC's January production fell to a one-year low.
"Crude oil, as the upstream raw material for various chemicals and fuel for processing, has supported the cost of plastics and glass," said Yao Yao. The Wenhua Finance Commodity Index shows that the methanol index rose 7.66% in January, coke increased by 4.66%, and the petrochemical, plastic, and PVC indices all rose by more than 2%.
"Chemical products have seen significant gains. Glass, PTA, plastics, PVC, natural rubber, and coke have all risen sharply and set new highs. There is still room for further upward movement," said Tao Jinfeng, research director at Guotai Junan Research Institute. With year-end supply tightness and the upcoming demand season, the market is expected to continue speculating.
A butterfly valve, is a valve that isolates or regulates the fluid flow. It's simple but reliable in Control Valves families, Butterfly Valve,Tripple Offset Butterfly Valve,Thread Butterfly Valve, Electric Actuated Butterfly Valve, Pneumatic Butterfly Valves.
Butterfly Valve,Tripple Offset Butterfly Valve,Thread Butterfly Valve, Electric Actuated Butterfly Valve, Pneumatic Butterfly Valves.
Zhejiang Philic Fluid Control Co.,LTD , https://www.philicflow.com