Hot foreign trade! Chemical exports soared by 70%, and orders are scheduled to be at the end of May

The current raw material market is out of stock while prices are rising!

This situation has never happened in the past 20 years! Although the midstream inventory is high and relatively under pressure, the strong external market drives the internal market, and the upward trend is expected to continue...

Domestic trade is impacted by the hoarding of supply sources,

Midstream inventory remains high!

Judging from the downstream receiving situation, traders have been selling goods at low prices in this early hoarding source, but new transactions are still relatively limited. Traders’ warehouses are now full of goods, but the daily shipments are small, the entire inventory remains high, and there is nowhere to put new goods.

According to reports, a trader in Fujian said that it is very difficult to get goods out of the warehouse. The goods are filled everywhere, and there is a queue to leave the warehouse.

At present, some automobile transportation companies have issued letters stating: In order to prevent risks and avoid potential safety hazards, the arrival of automobile cargo is suspended.

Downstream exports soared by 70%

From January to February 2021, the export of plastic products is booming, with an export value of 91.15 billion yuan, an increase of 70.5% year-on-year, an increase far exceeding the expected 40-50%.

At present, foreign trade orders are generally received in May, and the export volume has increased by about 10% compared with the same period in previous years.

The increase in export orders was firstly due to the impact of the extremely cold weather in the United States and the shrinking of its own supply. Coupled with the recent reductions in production of many devices in Europe and the United States, and the shortage of supply in Southeast Asia, South Korea, Japan, etc., part of the volume has to be transferred to Europe and the United States, resulting in a tight overall supply.

Second, the overseas epidemic situation has improved, the shipping schedules affected by the epidemic in the early stage have resumed, and the terminal demand has gradually increased. Third, shipping and logistics costs are showing a downward trend.

According to feedback, since late January, foreign trade orders began to increase. In February, foreign trade orders were about 80,000 tons, compared with 20,000 to 30,000 tons in the same period of the previous year. The average daily increase in foreign trade orders in March was about 200% of the daily output.

On the one hand, foreign demand is tight; on the other hand, foreign prices are strong, so the continuous export arbitrage window has opened in recent months, which eased domestic supply pressure and strongly supported domestic polyolefin prices.

Supply is tight! The giants "add fuel to the fire"!

The profit transmission of downstream finished products is not smooth, and some manufacturers have fallen into a loss cycle of "selling one order and losing one order". If you don't increase your money, you will lose money, but if you increase too much and worry about losing customers, you can only decide the increase based on the order quantity.

But judging from the current situation, it is estimated that we can't wait for a price cut! In just a few days, there is another giant direct price increase link!

▶▶Silicone: The giants are raising prices across the board! It's almost 30,000 CNY/ton!

In early March, Dow, Shin-Etsu, WACKER and other silicone departments announced an average price increase of about 7% for basic raw materials, WACKER officially announced an increase of 20%! Detonate the silicone market! This is already the 13th round this year! Subsequently, on March 13, Elkem announced a global increase in the prices of all its silicone products.

At present, mainstream manufacturers of organic silicon have closed the market and are reluctant to sell, and the market has a single discussion.

▶▶Clariant: Increase the price of pigments and pigment preparations, about 7,800 CNY/ton!

Clariant, a specialty chemicals company focused on innovation, announced that starting March 19, 2021, global prices in its product portfolio will increase. The price of the pigment product portfolio will increase by USD 1.2/kg (approximately RMB 7,800/ton), and the price of the pigment preparation will increase by USD 0.5/kg (approximately RMB 3200/ton) or equivalent local currency.

▶▶Kuraray: Increase the price of PMMA, about 3234 CNY/ton!

Starting from March 15, 2021, the price of polymethyl methacrylate (PMMA) PARAPET™ products will be increased, the price in Japan will be increased by 50 yen/KG (approximately RMB 2,999/ton), and the price in the Asia-Pacific region will be increased by US$0.5/KG. (Approximately RMB 3234/ton).

Recently, it seems that many industrial chains have joined the queue for price increases. Whether it is multiple categories of chemical products, bulk industrial products, and industries closely related to people's food, clothing, housing and transportation, they have shown a hot trend, which is related to the imbalance of supply and demand and financial factors. And many other factors. Based on the current situation, industry insiders said that from a horizontal perspective, the prosperity of many industries such as the chemical industry may continue to rise, and it is difficult to see a decline in the short term.