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    Home > Chemial News > Paint & Coating News > More than 20 chemical giants such as BASF, DSM, DuPont, Dow, and LANXESS have collectively raised prices!

    More than 20 chemical giants such as BASF, DSM, DuPont, Dow, and LANXESS have collectively raised prices!

    Echemi 2021-03-29

    Recently, SABIC issued a price increase letter, announcing that due to supply shortages, raw materials and logistics costs continue to increase, starting from April 1st, SABIC will increase prices for the following products:
    CYCOLOY (ABS) resin rose by 3272.6 yuan/ton
    GELOY RESIN (ASA) resin rose by 6545.2 yuan/ton
    LEXAN (PC) resin rose 7854.2 yuan/ton
    XYLEX (PC/polyester alloy) resin rose 1,3090.4 yuan/ton
    VALOX (PBT) resin/XENOY (PC/PBT) resin
    Filling grade rose 1,3090.4 yuan/ton
    Non-filled grade rose by 16,363 yuan/ton.

     

    According to incomplete statistics, since the beginning of the year, more than 20 international chemical giants, such as BASF, DSM, DuPont, Dow, and Lanxess, have announced that they have risen in letters, and the increase has been relatively strong, with the highest rise exceeding 16,000 yuan/ton.

     

    BASF raises prices for a variety of raw materials

     

    BASF announced that the U.S. TDI and polyether polyol prices will increase on April 1, with TDI rising 11 cents per pound (1,579 yuan/ton) and polyol up 13 cents per pound (1866 yuan/ton).
    BASF announced that it will increase the price of polyetheramine sold under the Baxxodur® brand in North America, effective from April 1, 2021 or the time allowed under the existing contract. BASF's Baxxodur products are widely used as high-efficiency curing agents in various coatings and sealants, wind energy, electrical industries, as well as composite materials, adhesives and flooring.
    Polyetheramine D230 rose by USD 0.30/lb (RMB 4,298.94/ton);
    Polyetheramine D2000 rose by US$0.38/lb (5,45.33 yuan/ton);
    Polyetheramine T403 rose by $0.31/lb (4,442.24 yuan/ton).
    BASF announced that due to the continuous surge in raw material costs and supply, BASF will increase the prices of its products in the Asia-Pacific region from March 5th:


    Ultradur® PBT products modified Ultradur® PBT products rose US$1,300/ton (approximately RMB 8440/ton)
    Unmodified Ultradur® PBT products rose by US$1,700/ton (approximately RMB 11043/ton)
    Ultradur® PA6 product modification Ultradur® PA6 product rose US$200/ton (approximately RMB 1299/ton)
    Unmodified Ultradur® PA6 products rose by US$300/ton (approximately RMB 1949/ton)
    Ultradur® PA66 product modification Ultradur® PA66 product increased by US$500/ton (approximately RMB 3248/ton)
    Unmodified Ultradur® PA6 products rose by US$700/ton (approximately RMB 4547/ton)
    Dow Chemical's price hikes for a variety of products
    It will start operations on April 1 to increase the price of all PE resins sold in the United States by 9 cents/lb (approximately RMB 1,290/ton).
    Dow's silicone business announced that it will increase the price of products in the silicone high-performance construction business from March 20, with the increase of 5%-10% for different products.
    Wacker Chemie announces price increases for various products
    Wacker Chemie announced that starting on the 26th, the polymer department of Wacker Chemie (China) Co., Ltd. will increase the price of the entire series of redispersible rubber powder products by 1.0 RMB/KG including tax (approximately RMB 1,000). Yuan / ton).

     

    WACKER POLYMERS has increased the prices of its emulsions, polymer resins and redispersible latex powders globally. The price adjustment will take effect from March 15, 2021. For all products in this business segment, as long as existing customer contracts permit, the price adjustment will take effect. The price range can reach up to 10%.


    Wacker Chemie announced that it will increase the global prices of all its silicone products. As long as the existing customer contract permits, the price increase will take effect from April. For all products shipped from April, the price increase will range from 10% to 20%.


    Wacker Chemie announced that it will increase the sales price of hydrophilic fumed silica HDK® in the Greater China region due to the recent combination of rising costs and tight supply. The price increase this time is up to 20% and will take effect from March 1, 2021.

     


    DuPont raises prices for a variety of raw materials


    DuPont Transportation and Materials Division announced that starting from April 1, 2021 (or as permitted by the contract), it will increase the prices of some products worldwide. Among them, Crastin® enhanced products in the Asia-Pacific region will increase by US$1.6/kg (approximately (RMB 10,411/ton), Crastin® non-enhanced products in the Asia-Pacific region will increase by USD 2/kg (approximately RMB 13,014/ton), and a variety of products in Europe, the Middle East, Africa, and the Americas will also be adjusted 1900-7000. Around RMB/ton.

    Polyplastics Co., Ltd.: Effective from April 1, 2021, the price adjustment range for all specifications of DURACON·POM is as follows:
    In Japan: +30 yen/KG (approximately RMB 1803/ton)
    Overseas: +0.3 USD/KG, equivalent to 2400 yuan/ton (tax included)

    AOC of the United States announced the implementation of price increases for its full series of unsaturated resins and epoxy ethylene resin series products, covering the EMEA region (Europe, Middle East, Africa). The specific increase is: unsaturated resin rose by 350 euros/ton (approximately RMB 2709/ton); epoxy vinyl ester resin rose by 450 euros/ton (approximately RMB 3483/ton).
    Equistar Chemicals (Equistar Chemicals): From April 1st, the price of all PE resins sold in the United States will increase by 6 cents/lb (about 860 yuan/ton).
    Both Dongjin Semichem and ENF Technology have already requested customers Samsung Electronics and SK Hynix to increase the price of thinners. They plan to increase the price of thinners by 50% from April.
    Titanium dioxide giant hair such as Tenuo, Chemours, Ishihara (ISK), Fannituo announced that the price of titanium dioxide and other products will increase by 200 US dollars/ton (approximately RMB 1293/ton) from April 1.
    Stepan raised the price of polyester polyols in the Americas in April 2021. Starting from April 1, or in accordance with the contract, Stepan will increase the price of STEPANPOL® and TERATE® rigid polyester polyols used in the Americas by US$0.07 per pound (approximately RMB 998/ton).
    Ashland is increasing the prices of 1,4-butanediol (BDO) and several derivative products by up to 8,520 yuan/ton. The increase is applicable to Europe and will take effect on April 1, 2021, or permitted by the agreement Take effect within the range.
    COIM USA will increase the price of its Isoexter® polyester polyol for on-site casting, rigid semi-finished products and spray foam applications in the United States and Canada by an increase of $0.04/lb (approximately RMB 571/ton). The price increase will take effect from March 1, 2021, or if the contract permits.
    Teijin Co., Ltd. sent a letter, starting from March 20, PC polycarbonate resin: price increase of 7,200 yuan/ton; PC series alloy resin: price increase of 5,000 yuan/ton.
    Shin-Etsu Chemical announced that it will increase the price of silicone products by 10-20%, which will be implemented on April 1, 2021.
    Cabot: After March 15th, the price of selected specialty carbon blacks originating in the Asia-Pacific region will be adjusted by an increase of 10%; the price of selected specialty carbon blacks originating in North America will be increased by an increase rate 25%


    Tosoh Specialty Chemicals (U.S.) issued a notice to increase the price of MDI for Millionate brands in North America. From March 1, 2021, or in accordance with the terms of the contract, Tosoh Specialty Chemicals (USA) will increase the price of MDI for this brand by $0.35/kg (approximately RMB 2,264/ton).
    Formosa Plastics USA stated that it will increase the price of all Formosa Plastics PE products it sells in the United States by 9 cents/lb (1287 yuan/ton) starting from April 1.


    Ube Industries issued a price increase letter, announcing that due to the impact of high prices of raw materials and logistics costs, it will increase the price of PA66 by 6,950 yuan per ton.

    Toray issued a price increase letter. From March 1st, non-filled PBT will be increased by 14,500 yuan/ton; flame-retardant/filled PBT will be increased by 9,700 yuan/ton.


    Celanese issued a price increase letter, announcing vinyl emulsions, such as VAE (vinyl acetate-ethylene copolymer emulsion with a vinyl acetate content of 70%-95%), PVAc (polyvinyl acetate, used in adhesives, emulsion glue) China The region rose by 1,500 yuan/ton!

     

    Kuraray announced that it will increase the price of polymethyl methacrylate (PMMA) PARAPET™ products from March 15, 2021, 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 0.5 USD/KG (approximately RMB 3234/ton).
    Ineos will increase the prices of the following polymer products in Asia:
    Luran®S rose by US$800/ton (approximately RMB 5196/ton)
    Novodur® High Heat rose by USD 450/ton (approximately RMB 2,923/ton)
    Novodur® rose by USD 450/ton (approximately RMB 2923/ton)
    Terblend®N rose by US$450/ton (approximately RMB 2923/ton)
    Luran® rose by US$350/ton (approximately RMB 2273/ton)
    Resin® rose by US$350/ton (approximately RMB 2273/ton)
    Styrolux® rose by US$500/ton (approximately RMB 3248/ton)
    NAS® rose by US$150/ton (approximately RMB 974/ton)
    Zylar®Clearblend rose by US$350/ton (approximately RMB 2273/ton)
    The overseas chemical industry is in a severe situation with many uncertain factors
    Regarding the increase of dozens of international chemical giants, industry insiders said that this is inseparable from the ups and downs of the overseas chemical industry.


    Affected by the cold wave and its accompanying supply interruptions, many chemical plants in the United States and Europe were closed. At the beginning of the year, the United States encountered extremely cold weather. The power cut in Texas had a huge impact on the chemical industry. Covestro announced the extension of the delivery period for all grades of products to 12 weeks. DuPont will suspend shipments on February 22. Mann’s delivery was delayed by 84 days... Dow Chemical, Lotte Chemical, Exxon Mobil and other companies announced the closure of their factories, resulting in a further reduction in chemical market output.

    In Europe, the interruption of rail and road transportation has caused the logistics of raw materials and finished products to be interrupted. Some companies have announced that their production in the Ruhr area of Germany has been interrupted due to force majeure. The cold weather has affected the production of some polyethylene terephthalate (PET) production lines in Germany, as well as ethylene glycol (MEG). The adipic acid plant of the Italian manufacturer Radici in Zeitz, Germany, was also suspended due to severe weather. For some regions and enterprises that rely on railway transportation, transportation delays have caused certain market chaos.


    In Japan, the earthquake also had a certain impact on the chemical industry. A magnitude 7.3 earthquake occurred in the waters near Fukushima City, Japan, followed by aftershocks of the highest magnitude of 5.3, affecting many factories in Japan. A number of chemical companies that supply raw materials to chip manufacturers have suspended production. Shin-Etsu Chemical of Japan temporarily suspended production at its Fukushima plant, and Mitsui Chemicals also suspended operations at a plant in Chiba Prefecture.

     


    The overseas epidemic situation is "tightening" again, and many places such as India, France, and Germany are "closed"

     

    In recent overseas epidemics, Germany, France and many other countries and regions have once again "closed their cities" in an attempt to stop the spread of the virus. European countries have also implemented a new round of prevention and control measures, and local factories and stores have also been affected, making it difficult to normalize The production and operation of the chemical industry will undoubtedly make the shortage situation of the chemical industry "exacerbated".

     

    German Chancellor Angela Merkel finally announced at 2 am local time on the 23rd that he had reached a resolution with the states to extend the currently implemented "cities lockdown" measures to April 18.


    On March 17, 2020, France adopted strict measures to "close the city" across the country. France thus entered the third wave of the epidemic and ushered in the third "closed city", with at least four weeks of blockade of the 16 provinces with severe epidemics.

     

    In addition, European countries such as Italy, Hungary, Poland, and the Czech Republic have also entered a new round of blockade. Italy has implemented a nationwide blockade on March 15; Hungary has implemented a new round of epidemic prevention and control measures on March 8, requiring all shops and business service establishments to be closed for two weeks; Poland has implemented a period of time from March 20 After three weeks of lockdown measures, shops, hotels and theaters were closed again. British Prime Minister Johnson also warned on the 22nd that the third wave of epidemics in Europe would hit Britain.

     

    At the beginning of 2021, despite the obvious recovery trend, the prospects of the European chemical industry are still full of uncertainties. Due to the strengthening of the euro, the increase in the infection rate of new crown pneumonia, the reintroduction of social restrictions and Brexit, the speed and strength of the European chemical industry's recovery in the coming months are at great risk. The duration and severity of the second wave of the new crown pneumonia epidemic may also have a major impact on the recovery of the EU chemical industry.

     


    The overall supply in the chemical market is tightening, which may strongly support the rise of domestic chemicals

     

    Regarding the recent crazy situation in the domestic chemical industry, many "watchers" said it was difficult to understand. Is it true that the rising cost of the upstream and the demand of the downstream have caused the price of raw materials to rise? With the gradual disappearance of these factors, will the chemical market recover quickly?

     

    I believe that after reading the above arguments, you will be able to understand that, in fact, the pull of downstream demand has just begun. Whether it is the earthquake in Japan or the extreme cold weather in the United States, the impact on the overseas chemical market is long-lasting, and it is difficult to fully recover in the short term. As the overseas epidemic counterattacked, more and more countries and regions chose to "close the city" and "cut off the air." Institutional analysis shows that the normal production and transportation of chemical enterprises have been greatly tested, and many countries and regions will switch to purchasing domestic chemical raw materials. Therefore, the export volume of domestic chemical products will be greatly promoted. Obviously, domestic chemical companies have already seen this. Whether it is price increases or closings, or expansion or overhaul, there is a hidden desire to hoard and earn profits in export trade. In other words, with many uncertain factors overseas, the chemical industry has become one of the industries that bear the brunt of the impact. Under the strong pull, there are still bullish expectations. Not only that, the shortage of supply in the future will also tighten, and a large number of overseas export orders may severely squeeze the supply in the domestic market. That is to say, the possibility of future price cuts in the chemical market is relatively low.

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