Chemical Industry Market Shows Signs of Recovery with Price Increases

Heading into the traditionally prosperous months of September and October, the chemical industry market is finally showing signs of improvement after a prolonged period of sluggishness. Among the 68 monitored chemical raw materials, 55 of them have experienced year-on-year increases, accounting for a significant 80.88%. Only 1 remained unchanged, while a mere 10 witnessed a decline, dispelling the gloom that characterized the first half of the year.

Notably, sulfuric acid, acetic acid, soda ash, and liquid chlorine have surged by over 30% in the past month. Isobutanol, octanol, n-butanol, propylene glycol, and butyl acetate have also experienced price fluctuations exceeding 1,000 yuan per ton.

Several major manufacturers have taken advantage of the upcoming peak season to adjust their prices. Dow Chemical, Toray Industries, and other overseas companies have announced price hikes for adipic acid, polyester, silicone, surfactants, PMMA, and other products. The price adjustments range from 5% to 23%, with increases exceeding 1,700 yuan per ton.

Dow Chemical, for example, issued a price increase notice stating that effective from September 1st, it will raise the prices of all grades and packaging types of surfactants in the North American region, with the highest increase reaching 0.1 USD per pound (approximately 1,612 yuan per ton). Previously, Dow Chemical's silicone business had also announced a price increase of 5-10% for its major products in the high-performance construction sector.

On August 23rd, Japan PE Corporation announced that it would raise the prices of all its PE products effective from September 1st, with increases exceeding 20 Japanese yen per kilogram (approximately 1,003 yuan per ton).

During the same period, Japan PP Corporation issued a price increase notice, announcing that it would raise the prices of all its PP products effective from September 1st, with increases exceeding 20 Japanese yen per kilogram (approximately 1,003 yuan per ton).

Rohm and Haas, for instance, will increase the prices of PMMA base films starting from September 1st. Materials sold under the Plexiglas® and Europlex® brands will see a price hike of 23%, which will be applicable to Europe, Asia, Africa, and the Pacific region.

J-Plus Corporation will raise the prices of polyester plasticizers, with adipic acid prices increasing by 8 Japanese yen per kilogram (approximately 404 yuan per ton) or more, and polyester prices increasing by 14 Japanese yen per kilogram (approximately 706 yuan per ton) or more.

KH Corporation, a major Japanese producer of acetone, will increase the prices of various chemicals. Acetone (2-propanol) prices will rise by 12 Japanese yen per kilogram (approximately 605 yuan per ton) or more, while MIBK and diacetone alcohol (4-hydroxy-4-methyl-2-pentanone) will see increases of 35 Japanese yen per kilogram (approximately 1,766 yuan per ton) or more.

Japan-based Ishihara Sangyo Kaisha will raise the price of titanium dioxide in the Asia-Pacific region by 200 USD per ton (approximately 1,446 yuan per ton).

Mitsui Chemicals will increase the prices of various surfactant products and polyethylene glycol (PEG). The price hikes include a minimum increase of 40 Japanese yen per kilogram (approximately 2,028 yuan per ton) for surfactants and a minimum increase of 50 Japanese yen per kilogram (approximately 2,535 yuan per ton) for PEG.

Kuraray, another Japanese company, will increase the prices of certain varieties of polyol products domestically and internationally. The domestic prices will rise by 12 Japanese yen per kilogram (approximately 608 yuan per ton) or more, while the international prices will increase by 0.1 USD per kilogram (approximately 714 yuan per ton) or more.

Kubota Chemical will increase the prices of PVC-related products, polyolefin-related products, and other related products by more than 20%.

The price hikes implemented by overseas chemical companies have put significant pressure on the domestic chemical industry and downstream sectors. Due to their high technological barriers and irreplaceability, many domestic enterprises are unable to compete. This has provided a solid foundation for the price increases seen among overseas chemical companies. DuPont, BASF, Eastman Chemical, and Wacker, among many other global chemical giants, have initiated rounds of price hikes, affecting high-end imports such as titanium dioxide, the PX industry chain, methanol, ethylene glycol, organic pigments, propylene, and styrene.

In conclusion, the chemical industry is witnessing a gradual recovery with the arrival of the "golden September and silver October" period. Overseas chemical companies have taken advantage of the peak season to increase prices, which has created challenges fordomestic chemical manufacturers and downstream industries. The high technological barriers and lack of alternatives make it difficult for domestic enterprises to compete. As a result, global chemical giants have implemented successive rounds of price hikes, impacting various sectors such as titanium dioxide, the PX industry chain, methanol, ethylene glycol, organic pigments, propylene, and styrene. The price increases have brought both opportunities and pressures to the chemical market, signaling a potential shift in the industry landscape.