​Start on May 1st! Dozens of chemical plants collectively cease production! The price increase can't stop!

Recently, acetic anhydride ushered in another wave of price increases. Affected by the increase in the price of raw material acetic acid, acetic anhydride was quoted at 10,300 CNY/ton, breaking through the 10,000 yuan mark, an increase of 10.16% from the beginning of the month, and some manufacturers quoted as high as 11,000 CNY/ton, a record high.

Since entering the second quarter, many chemical companies have arranged for overhauls, involving more than a dozen chemical raw materials such as ethylene glycol, phenol ketone, methanol, butadiene, and styrene. The shutdown of part or all of the large plants for maintenance has directly affected the output and supply, making the chemical market that is already in short supply, and also boosting the upward trend in the prices of many chemical products.

Dozens of companies including Lihuayi, Yanshan Petrochemical, LG Chemical and other companies plan to shut down for maintenance in May
The 200,000-ton/year ethylene glycol plant of Lihua Yilijin Refining & Chemical Co., Ltd. plans to shut down on May 1 for maintenance, which will last for one month.
Taiwan’s Nanya 1# 360,000-ton/year MEG unit will be shut down for maintenance for about 15 days at the end of May as planned. Taiwan's 2# 360,000-ton/year MEG unit will be shut down for maintenance for about 30 days at the end of May as planned.

Yanshan Petrochemical’s 300,000-ton/year phenol and ketone plant was shut down for maintenance on March 26, and it is expected to start operation in mid-May.
Gaoqiao Petrochemical's 250,000 tons/year phenol ketone plant is scheduled to be overhauled from May 6 to May 29.

The phenol ketone plant of Jilin Petrochemical Company plans to shut down for maintenance in May, which is expected to be 45 days.
TaiyoPetrochemical (Japan Sun Petrochemical) 300,000 tons/year of pure benzene, 700,000 tons/year of xylene, and 432,000 tons/year of toluene. It is expected to shut down on May 21 for maintenance and 30 days of maintenance.
Yanshan Petrochemical’s 180,000-ton/year-old HDPE unit will be overhauled at the end of March and is expected to be shut down for maintenance until May 14; the 200,000-ton/year new HDPE unit will be overhauled at the end of March and is expected to be shut down for maintenance until May 14; 180,000 tons/year The HDPE device will be overhauled at the end of March in 2015, and it is expected to be shut down for overhaul until May 14th.

The butadiene and downstream rubber plants of Fushun Petrochemical will be shut down on April 12th, and the preliminary estimated time will be around 40 days.
The 2.2 million tons/year methanol plant supporting Ningxia Baofeng CTO is scheduled to be overhauled for about 15 days in early May.
CNOOC's 800,000-ton/year methanol plant is expected to shut down in May for maintenance.
Jilin Petrochemical's ABS plant plans to shut down the entire line for maintenance from the end of May to the beginning of July.
Zhejiang Chuanhua's 100,000 tons/year butadiene rubber plant plans to shut down in May for maintenance.
Yanshan Petrochemical's 120,000 tons/year butadiene rubber plant plans to shut down for maintenance in April and May.
Fushun Petrochemical's 200,000 tons/year styrene butadiene rubber plant plans to shut down for maintenance in April and May.
Jilin Petrochemical's styrene plant is scheduled to be overhauled from May to June.
Fushun Petrochemical's 60,000-ton/year styrene plant plans to start shutting down for maintenance for 1.5 months in May.
Tianjin Dagu's 500,000-ton/year styrene plant plans to shut down for maintenance for about 20 days in May.

Shandong Yuhuang 2# styrene plant plans to shut down for maintenance for about 40 days from May to June.
Covestro's 500,000-ton/year PC plant plans to shut down for maintenance from April to May.
Shanghai Mitsubishi's 100,000-ton/year PC plant plans to shut down for maintenance in May.
Sinopec Mitsubishi's 100,000-ton/year PC plant plans to shut down for maintenance from early April to mid-May.
Sinopec Mitsubishi's 180,000-ton/year bisphenol A plant is scheduled to be overhauled for 45 days from early April to mid-May.
LG Chem's 450,000-ton/year bisphenol A plant plans to overhaul for 15 days in May.

Kumho 450,000 tons/year bisphenol A plans to overhaul two lines in May (line 2 plans to stop for 20 days from May to June).

The European Huntsman’s 470,000-tonne/year MDI plant in Rozhenborg, the Netherlands, delayed its restart until May, and the plant began to be overhauled in March.
BASF's 300,000-ton/year TDI plant in Ludwigshafen, Germany, plans to enter the maintenance period from March to April. It is reported that the maintenance period is about 2-3 months, and the scale of maintenance is relatively large. The device currently maintains low-load operation.

India's Haier Dia 350,000 tons/year PP plant plans to shut down for maintenance from mid-May to mid-June.

The 440,000-ton/year PP plant of India's MRPL series is scheduled to be shut down for maintenance from early May to late May.

According to incomplete statistics from the paint procurement website, dozens of chemical plants of LG Chem, Yanshan Petrochemical, CNOOC, Fushun Petrochemical, Sinopec Mitsubishi, etc., were scheduled to shut down for maintenance in May or are under maintenance. According to industry insiders, from historical data, the second quarter is the traditional peak season for overhauls, and May is the month with the highest overhaul intensity. In addition, due to the tight supply of raw materials, some downstream enterprises also chose to reduce the load and shut down due to the shortage of materials. The market inventory is further reduced and raw materials are in desperate situation.

BASF and Chemours announced price increases in May, and many chemical raw materials are still expected to increase.

Recently, chemical giant BASF announced that its kaolin business is increasing the price of its entire product portfolio by 10%. The price change is effective for all materials allowed on or after May 1, 2021 or in the contract. Previously, titanium dioxide giant Chemours had notified in early April that from May 1st, titanium dioxide will increase by US$200/ton (approximately RMB 1,313/ton). In addition, various chemical products such as pigments, resins, and TGIC have bullish expectations, and may continue to increase in May.

Titanium dioxide: Titanium dioxide products have been raised by RMB 4,200/ton cumulatively during the year, and orders are currently queued up to June. Titanium dioxide leader China Nuclear Titanium Dioxide said that due to the current reduction in the output of large foreign titanium dioxide manufacturers, the company's overall sales of titanium dioxide in foreign markets have increased. This has led to a decrease in the supply of titanium dioxide in the domestic market, and the shortage has caused prices to rise. In addition, the price of titanium dioxide may rise further. At present, the titanium dioxide market has not ended its upward trend.

Pigment products: currently lined up, year-to-date phthalocyanine blue pigments have increased by 8,000 CNY/ton, phthalocyanine green pigments have been increased by 6,000 CNY/ton, iron oxide pigments have been increased by 200-2,000 CNY/ton, and aluminum pigments have increased by 3,200 CNY/ton. CNY/ton, the orders for the first half of the year are currently full, and most companies have a single discussion. It is reported that there are still arrangements for increase in May.
TGIC: TGIC is currently quoting 58,000 CNY/ton, and some companies’ quotations have exceeded 60,000 CNY/ton, setting a new historical high. The price rose by 7.14% during the year and was 25% higher than last year’s low value. At present, many companies have indicated that they are out of stock. They will ship on the contract date and accept orders in May. The later price will be negotiated based on the order volume of downstream customers. There are still bullish expectations after May.

Epoxy resin: Liquid epoxy resin is quoted at RMB 40,000/ton-RMB 41,000/ton. Since 2021, the cumulative increase of liquid resin in East China has increased by 86%. The price of solid epoxy resin was 36,000 CNY/ton, a record high. Some companies have already closed their quotations. At present, they need to queue for about a month if they are out of stock, and they have to pay in full to arrange production and delivery. Overseas demand is strong, and the domestic offshore wind power industry has also seized the last year of subsidies to launch crazy projects, etc. The supply of epoxy resin is in short supply, and it is expected that there will be an increase in May.

With the gradual recovery of the global economy, strong demand has led to unprecedented cost pressures in manufacturing, labor, and logistics. It is expected that this situation will be difficult to reverse after May in the second quarter. At the same time, the "out of stock tide" emerging from the source is gradually being transmitted. Under the severe imbalance of supply and demand, the seller's market trend is highlighted, and there are many hype factors, which increase people's anxiety, and the situation of queuing to buy becomes more and more intense. Eventually a closed-loop effect of "price increase-out of stock-price increase again" was formed.