Chemical Prices on the Rise: Domestic and Overseas Markets Respond to Supply Constraints

Recently, Japanese company Ishihara Sangyo Kaisha (ISK) announced a price increase, stating that the price of titanium dioxide in the Asia-Pacific region will be raised by $200 per ton from July 1st.

Currently, the domestic chemical market has also started to tentatively increase prices, and many chemical companies have also sent letters announcing price adjustments to boost the sluggish market.

Kanghui International Trade (Jiangsu) Co., Ltd. issued a price adjustment notice, stating that due to the continuous increase in raw material prices and the pressure on PBT production costs, the transaction price of various specifications of PBT will be increased by RMB 300 per ton from June 27th.

In the BDO market, due to the unexpected shutdown of Xinjiang Tianye and the maintenance of Henan Hemei plant, the price of BDO has rebounded significantly, rising by RMB 600 per ton to RMB 11,100 per ton within half a month.

Wanhua Chemical's pure MDI barrel/bulk listing price for June 2023 is RMB 23,300 per ton, an increase of RMB 500 per ton compared to the previous month. The settlement price for barrel/bulk in May was RMB 19,500 per ton, an increase of RMB 700 per ton compared to the previous month. Pure MDI products are executed at a fixed price of RMB 21,000 per ton. Barrel products are in short supply and non-contract customers are not accepting orders or quoting prices.

Wanhua Chemical's n-butanol prices in North China, East China, and South China have increased by RMB 450 per ton, RMB 300 per ton, and RMB 150 per ton, respectively, with quoted prices of RMB 7,350 per ton, RMB 7,700 per ton, and RMB 7,300 per ton. Acrylic acid AA prices in North China and East China have both increased by RMB 100 per ton to RMB 5,500 per ton. Acrylic acid butyl ester BA prices in North China and East China have both increased by RMB 100 per ton to RMB 8,500 per ton.

Sinopec Sales Company has raised the price of xylene by RMB 50 per ton, with the current price being RMB 8,250 per ton.

Shandong Hualu-Hengsheng Ketone raised the price of cyclohexanone by RMB 100 per ton to RMB 8,100 per ton, currently offering self-pickup.

Luxi Chemical raised the price of cyclohexanone by RMB 100 per ton to RMB 8,000 per ton, currently offering ex-factory pickup.

Luxi Chemical raised the price of isobutanol by RMB 100 per ton, with a quoted price of RMB 9,600 per ton.

Shandong Lihua Yi raised the ex-factory price of isobutyraldehyde to RMB 6,400 per ton, an increase of RMB 100 per ton.

Shandong Lihua Group raised the ex-factory price of isooctanol to RMB 9,700 per ton, an increase of RMB 800 per ton within half a month.

Shijiazhuang Bailong Chemical raised the price of phthalic anhydride by RMB 100 per ton to RMB 7,700 per ton, with low on-site inventory.

Tongling Chemical Industry Group raised the price of phthalic anhydride by RMB 100 per ton to RMB 7,600 per ton, with normal sales.

In the PC industry, Lihua Yi, Luxi Chemical, and Zhejiang Iron and Steel raised prices by RMB 100 per ton, and Zhejiang Iron and Steel followed suit with an increase of RMB 100 per ton. Zhejiang Iron and Steel's PC went through two rounds of bidding, with an increase of RMB 400 per ton, significantly boosting the market. Lihua Yi's WY-111BR increased by RMB 150 per ton, Zhejiang Iron and Steel's DF02-10R increased by RMB 100 per ton, and China Blue State's Z1-101R increased by RMB 100 per ton. South Korea's Lotte 1100 increased by RMB 50 per ton.

Data shows that the prices of more than 40 chemical products have been adjusted upward compared to half a month ago (the week before Dragon Boat Festival), but the increases are generally small, with MMA seeing a small increase of 13%.

MMA is currently priced at RMB 12,250 per ton, with an increase of RMB 1,450 per ton in the past half month, an increase of 13.43%.

Normal butanol is currently priced at RMB 7,400 per ton, with an increase of RMB 542 per ton in the past half month, an increase of 7.90%.

BPA is currently priced at RMB 9,225 per ton, with an increase of RMB 500 per ton in the past half month, an increase of 5.73%.

Octanol is currently priced at RMB 9,650 per ton, with an increase of RMB 475 per ton in the past half month, an increase of 5.18%.

Fatty alcohol is currently priced at RMB 10,100 per ton, with an increase of RMB 450 per ton in the past half month, an increase of 4.66%.

In addition to the small increase in domestic chemical product prices, the overseas chemical market has already begun to rise.

Sanyo Chemical announced that it will raise the prices of various surfactant products and polyethylene glycol (PEG) from July 1st. The price increase for surfactant products is more than 40 yen/kg (approximately $2,028/ton), and for PEG products is more than 50 yen/kg (approximately $2,535/ton).

Japan's Kuraray announced that it will raise the prices of certain types of polyols for domestic and international markets from July 1st. The increase for domestic prices is 12 yen/kg (approximately $608/ton) or more, and for international prices is 0.1 USD/kg (approximately $714/ton) or more.

Kubota Chemical announced that it will raise the prices of vinyl chloride-related products, polyolefin-related products, and other related products by more than 20% from July 3rd.

The Asian region's market closing price for xylene rose by $6/ton, with a closing price of $940-$942/ton FOB Korea and $965-$967/ton CFR China.

The European region's market closing price for xylene rose by $5/ton, with a closing price of $1,071-$1,073/ton FOB Rotterdam.

The US region's market closing price for xylene rose by $7/ton, with a closing price of $1,029-$1,039/ton FOB US ports.

Industry insiders believe that this round of small-scale price increases is closely related to the recent production restrictions in the chemical market. In recent months, orderly electricity consumption actions have been carried out in many areas, which have limited the operating rates of high-energy-consuming enterprises. The production capacity of some industries has even been reduced to less than 50%. This wave of actions came earlier than in previous years, starting in March or April this year. The market supply of some chemical products has been greatly reduced.