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Chemical Raw Materials Soared Collectively! The Highest Increase Is 254%

Nov 13, 2020

The organic silicon DMC market has skyrocketed. As of November 8, the average price of organic silicon DMC market quotations in mainstream areas was 22,800 yuan/ton, an increase of 6,800 yuan/ton from 16,000 yuan/ton at the end of August, an increase of over 42.5%.


Industry insiders analyzed that after the National Day in October, the domestic silicone DMC market began to rise steadily. The downstream demand was good, the procurement was normal, the upstream and downstream transmission support was smooth, and the market situation was improving. In late October, the single increase of monomer plants was all Around 500 yuan/ton. After entering November, the high trend of silicone DMC has made the factory feel reluctant to sell, and the low inventory has caused it to be closed. The market situation on the market was slightly chaotic, and some of the holders' high quotations had exceeded 23,000 yuan/ton.


Since entering the third quarter, many raw materials have experienced retaliatory increases, and many raw materials have even doubled in price and reluctant to sell them, setting new high prices for many years.


Isopropyl alcohol rose by 135%, driven by overseas demand for disinfectants


The highest quotation of isopropanol this year reached 14,100 yuan/ton, an increase of 8,100 yuan/ton from the low of 6,000 yuan/ton during the year, an increase of 135%. This year, the new crown epidemic has repeated, especially the overseas situation is very severe, and the demand for disinfectants in many countries has increased sharply. As a disinfectant, isopropyl alcohol is favored by foreign customers, and the demand has shown an "explosive" growth. In March, my country's export volume of isopropanol exceeded 20,000 tons, an increase of more than 1.3 times compared with the total export volume of 8,493 tons in the previous two months. The increase in export orders from domestic isopropanol factories has pushed up isopropanol quotations.


Propylene oxide rose by 180.88%, setting a 14-year high


The highest propylene oxide quotation this year reached 19,100 yuan/ton, refreshing the high value since 2006 (the highest point was 19,000 yuan/ton in June 2008), an increase of 12,300 yuan/ton or 180.88% from the year’s low of 6,800 yuan/ton .


The market for propylene oxide has been rising since August. Due to the fundamentals and the main supply and demand side taking turns, the price of raw material propylene is high, the propylene oxide plant has no inventory, the downstream transmission is positive, the volume and price are chasing up and the follow-up is stable, and the market is trading. Smooth, supporting manufacturers to keep up with the market mentality, the main offer continued to push up. In addition, Hongbaoli, Shandong Yuexin and other major enterprises have stopped their installations, and domestic stocks are even more in short supply, and propylene oxide has entered a stage of rising volume and price.


Polyether rose by 186.8%, a 12-year high


Benefiting from the pull of upstream propylene oxide, the domestic polyether market continued to rise in a straight line in September, surpassing the 20,000 yuan/ton mark in the middle of the month, reaching a high price of 20,500 yuan/ton, which was 6,800 yuan/ton from the lowest point on April 4 The ton increased by 186.8%, a new high since 2008. It also shows the unconventional phenomenon of priceless goods and price increases.


The reason for this surge is that, on the one hand, the strong promotion of upstream propylene oxide, the price of polyether factories followed up, and the center of gravity moved upward under cost pressure. It is reported that more than 70% of propylene oxide in China is used to produce polyether. On the other hand, the U.S. plans to implement countervailing duties on mattresses imported from China; implement anti-dumping on mattresses imported from Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam, and accelerate part of the downstream stocking, production, and delivery. Demand for soft foam has increased and export orders have picked up significantly.


Dimethyl carbonate DMC increased by 254.17%, and orders are scheduled for the Spring Festival next year


Recently, the global DMC leader Shandong Shida Shenghua battery-grade DMC price quoted 17,000 yuan / ton, the highest point since 2012 (13,500 yuan / ton). This is an increase of 12,200 from the low of 4,800 yuan/ton during the year, an increase of 254.17%.


The current new energy automobile industry is in full swing. Automobile companies such as Xiaopeng, Weilai, and Tesla are all making strides to enter the field of new energy vehicles. Leading companies in other industries such as Huawei, Evergrande, and Gree are also preparing to enter the new energy vehicle industry. The energy automobile industry puts more attention. There is a huge boost for its raw material DMC. The main leading enterprise, Shi Da Shenghua, is producing at full capacity 24 hours a day, but the market is still in short supply, and money cannot buy goods. In the near future, the main focus is to ensure the supply of major customers, and the orders are mostly to execute high-priced large orders, and the orders are scheduled after the Spring Festival.


MDI increased by 113.64%, giant hair letter increased by 5400 yuan/ton


In October, Wanhua Chemical sent a letter to raise the price, and polymerized MDI was raised by 5,400 yuan per ton. BASF, Huntsman and other companies also followed suit, and the monopoly of the MDI industry has driven the average price of the entire industry. On October 28, the price of polymeric MDI was 23,500 yuan/ton, an increase of 12,500 yuan/ton or 113.64% from the low price of 11,000 yuan/ton during the year.


TDI rose by 87.72%, the largest innovation in three years


In the second half of the year, domestic sources of goods started from 10,200 yuan/ton, and so far rose to 17,833.33 yuan/ton, an increase of 8333.33 yuan/ton from the year’s low of 9,500 yuan/ton, an increase of nearly 87.72%, the highest in the past three years.


Acetone rose by 89.19%, the main enterprises entered the maintenance period


In November, acetone was quoted at RMB 7,000/ton, an increase of RMB 3,300/ton from the low of RMB 3,700/ton during the year, or 89.19%. Beginning in September, the mainstream factory Bluestar Harbin went into overhaul, and the supply of goods plummeted. Lihua Yiweiyuan and other companies adjusted prices several times. Under this circumstance, upstream manufacturers limited shipments and supply tightening, which pushed up the price of acetone. Then October The acetone market continues to rise.


Looking at the situation of raw materials with a large increase, it can be seen that the pull of the downstream market is an important factor. For example, after the epidemic has been basically controlled, many downstream industries have recovered, which has greatly promoted the price increase of MDI, TDI, propylene oxide, polyether and other raw materials in the polyurethane industry chain. The recent return of orders from India to my country has also strongly boosted the prices of many raw materials in the textile industry chain. In the future, the pull of industrial projects such as infrastructure will still lead to a large number of chemical products, and the contradiction between supply and demand will inevitably trigger price changes.


On the other hand, in the domestic chemical raw material industry, there is a phenomenon that large companies are "dominant". For example, in the MDI industry, the five leaders of Wanhua Chemical, BASF, Covestro, Huntsman, and Dow account for more than 88% of global production capacity. In the TDI industry, BASF, Covestro, Wanhua Chemical, and Cangzhou Dahua account for about 60% of production capacity. Coupled with the high degree of overlap between the leading companies of TDI and MDI, the top five companies in the titanium dioxide industry account for half of the production capacity, and the epoxy resin in the Huangshan area of Anhui occupies more than 60% of the domestic market.······In this oligopoly In the industry, it has a strong market voice. This also explains that the market is weak under the epidemic and cannot stop the rhythm of price increase letters.


The hot trend has just begun. The textile industry's orders are queued up to May next year, and dimethyl carbonate is lined up until the Spring Festival next year. Many companies have already stopped quoting orders if they are not in the queue. This trend will gradually spread to multiple industries. This rhythm also determines that the price of chemical products will continue to soar, and even continue until the middle of next year. "If you have money, you can’t buy goods" more frequently. appear.