Price increase! Raw materials soared 10%, price letter to the factory in advance!

2023 has little left, the world suddenly collective big price rise!

Crude oil jumped 10%! Pull downstream multiple industrial chains! 

Bp became the first international oil major to announce the suspension of tanker traffic through the Red Sea on December 18. WTI crude oil quoted $79.94 / barrel, Brent crude oil quoted $79.37 / barrel, strong gains, up 10%, is expected to break through the $80 mark within the week.

Many industries around the world have sent price increase letters

Crude oil pulls up dyes, plastics and other plates, and a number of companies have issued price hike letters.

Plastics industry: two major PS plastic enterprises up to 800 yuan 

DIC of Japan will increase Polystyrene (PS) products and Styrene series products from January 1, 2024. The increased products include Styrene, GPPS, HIPS and elastic Ethylene, and the increase is more than 16 yen /KG.

P.A.WORKS will increase the company's Polystyrene (PS) prices from January 1, 2024. The increased products include GPPS, HIPS, special grade PS and flame retardant grade PS, and the increase is more than 15 yen /KG.

Titanium dioxide industry: leading enterprises led by 700 yuan! 

On December 6, Titanium dioxide giant LB Group issued a price adjustment letter, announcing that since January 1, 2024, the sales price of the company's various models of Titanium dioxide will be raised, and international customers will increase by $100 / ton.

The next day, CHTI issued a price adjustment letter, announcing that since January 1, 2024, the sales price of the company's various models of Titanium dioxide will be increased, including an increase of $100 / ton for international customers.

Chip industry: The full range of products rose 20%! 

ADI recently issued the latest price increase letter to its dealers, according to the price increase letter circulated in the industry shows that ADI materials will increase product prices, according to internal leaks, the increase is 10%-20%, including new orders and existing booking demand, the price increase will be implemented from February 4, 2024.

Recently, the Red Sea incident continues to fermentate, driving naphtha to run stronger, while the performance of domestic chemicals also appears stronger than Crude oil, Styrene, Ethylene glycol, PVC, PP, etc. are running stronger, driving the spot to rise against the trend.

Looking back at history, in 21 years, a cargo ship ran aground in the Suez Canal, causing the Suez Canal to be blocked for seven days, which also had a huge impact on international shipping prices, and also gave a big boost to the price rise of bulk chemicals. Therefore, in the short term, crude oil and bulk chemicals are bound to run strongly under the influence of market concerns, but with the actions and statements of all parties, the impact may be limited.