Nearly 100 chemical giants have stopped production and may be out of stock at any time!
Recently, SABIC issued a letter announcing that due to the imbalance between supply and demand, the price of some products in North America will be raised from May 17th:
LEXAN™ (PC) resin rose by US$0.75/kg (approximately RMB 4873.6/ton).
CYCOLOY™ (ABS) resin rose by US$0.75/kg (approximately RMB 4873.6/ton).
VALOX™ (PBT) flame retardant resin rose by US$0.75/kg (approximately RMB 4873.6/ton).
XENOY™ (PC/PET) resin rose by US$0.75/kg (approximately RMB 4873.6/ton).
XYLEX™ (PC/polyester alloy) resin rose by USD 2.5/kg (approximately RMB 1,6245.3/ton).
At the same time, BASF issued three notifications in a row announcing force majeure.
On the 21st, BASF stated that it received a force majeure notice from raw material suppliers on Monday, and that raw materials such as adiponitrile (ADN), hexamethylene diamine (HMD) and AH-salt will be reduced in supply. This directly affected the supply of BASF's PA66 products (Ultramid® A and Ultramid® C, Capron® PA66). Therefore, BASF announced that all PA66-based products have encountered force majeure, effective immediately. At this stage, the duration of force majeure is unpredictable.
On the 19th, BASF announced that its European company supplies the recent force majeure statement of some key raw materials, resulting in a shortage of raw materials, and the force majeure of PBT/ULTRADUR® polymers and compounds will take effect immediately.
On the 19th, BASF announced that due to force majeure in the supply of raw materials such as adiponitrile (ADN), HMD, 2PN, and AH salt, the time for the restoration of supply is uncertain. Therefore, BASF announced that it has declared force majeure on the supply of Ultramid® A, Ultramid® AC polymers and other products from the date of the announcement.
DuPont issued the "Supplementary Notice of Force Majeure Regarding Crastin PBT Products": As one of the key raw materials required for the manufacture of Crastin PBT polymers-INEOS, the main supplier of purified terephthalic acid (PTA), in March 2021 After the force majeure was announced on the 2nd, the future delivery time has not been determined so far. DuPont's German PBT production plant was closed on April 15, 2021, and will remain closed until sufficient raw materials are available. DuPont said that from the current point of view, the severe shortage will continue until June 2021.
Most people are surprised by the increase of 1,6245.3 yuan/ton by large chemical factories caused by the imbalance of supply and demand. According to the Coatings Purchasing Network, after the chemical market’s “rising momentum” in the first quarter, the key word of the chemical market in the second quarter has become “tight goods prices”. The imbalance between supply and demand mentioned by SABIC is also common in the domestic market. Whether it is voluntary parking inspections and repairs by companies, forced "relocations and transfers", or the recent tightening of environmental inspections and local inspections, they will all be affected. The chemical industry, with tight supply and short supply, has taken another step toward the "deep".
Nearly 100 chemical companies stopped for maintenance, up to 95 days
According to public information, the petrochemical plant will enter the centralized maintenance period from April to May, the operating rate will continue to decline, and the manufacturer's inventory is limited. Last year, due to the epidemic, most companies rushed to work overtime in the second half of the year. Equipment maintenance in some companies was postponed to 2021. Therefore, the situation of equipment shutdown and maintenance this year is better than that of previous years. Nearly one hundred chemical companies such as Lihuayi, Fushun Petrochemical, Jilin Petrochemical, Sinopec Mitsubishi, Maoming Petrochemical, Yanshan Petrochemical, etc. are currently in the shutdown period or are about to undergo maintenance, involving ethylene glycol, epoxy resin, pure benzene, and bisphenol. A. Dozens of chemical raw materials such as propylene. The cycle varies from 10 to 50 days, and some companies have parked for as long as 95 days.
Ethylene glycol MEG:
Lihuayi and Elcometer stop for short periods of the week, Red Square stops for maintenance, and Inner Mongolia Yankuang drops and stops. At present, 2 sets of Henan Coal Industry, 300,000 tons of Xinjiang Tianye Phase II, 200,000 tons of Hubei Fertilizer, and 1 set of Yangmei are in a state of long-term shutdown.
Zhenghe Petrochemical's 50,000 tons/year pure benzene plant will be shut down for maintenance from May to June 2021.
Dalian Fujia Dahua's 350,000-ton/year pure benzene plant will be overhauled for 50 days from May 20, 2021 to July 10, 2021.
Fushun Petrochemical's 280,000 tons/year pure benzene plant will be overhauled for 40 days from April 5, 2021 to May 15, 2021.
The 240,000 tons/year pure benzene unit of Jilin Petrochemical Company will be overhauled for 45 days from May 20, 2021 to July 20, 2021.
Zhenhai Refining & Chemical's 200,000-ton/year pure benzene unit will be overhauled for 15 days from May 20, 2021 to June 4, 2021.
Shanghai Petrochemical's 150,000-ton/year pure benzene plant will be overhauled for 95 days from March 10, 2021 to June 13, 2021.
Shanghai Petrochemical's 550,000-ton/year pure benzene plant will be overhauled for 60 days from April 15, 2021 to June 13, 2021.
North Huajin's 15+27 thousand tons/year styrene plant will be overhauled for one month from July 15 to August 15, 2021.
Jilin Petrochemical's 14+32 million tons/year styrene plant will be overhauled from May to June in 2021.
Fushun Petrochemical's 60,000-ton/year styrene plant will be shut down for 45 days on April 5, 2021.
Tianjin Dagu's 500,000-ton/year styrene plant plans to shut down for 20 days on May 5 in 2021.
Maoming Petrochemical’s 100,000-ton/year styrene plant will be shut down for 30 days in June 2021 for maintenance.
Xinpu Chemical's 320,000-ton/year styrene plant will be shut down for 25 days from October to November 2021 for maintenance, and on January 12, 2021 for 12-14 days.
Qilu Petrochemical’s 200,000-ton/year styrene plant will be overhauled for 50 days in August 2021.
The first phase of CNOOC and Shell’s 700,000-ton/year styrene plant will be cracked and the whole plant will be overhauled for 50 days in late October 2021.
Shandong Yuhuang 2# 250,000-ton/year styrene plant will be shut down for maintenance for about 40 days from May to June 2021.
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.
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 be overhauled 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).
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.
Yanshan Petrochemical’s 200,000-ton/year EVA plant has been shut down for 45 days for maintenance since March 30.
Beijing Huamei's 60,000-ton/year EVA plant is under long-term shutdown.
On April 20, Hebei Langfang, Hebei Nuoerxin epoxy resin production capacity of 60,000 tons/year was shut down for maintenance. The start-up time is to be determined and the inventory is empty.
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.
The 100,000 tons/year butadiene oxidative dehydrogenation unit of Jiangsu Silbang Petrochemical was shut down for maintenance.
Fushun Petrochemical's 160,000 tons/year butadiene extraction unit was shut down for maintenance on April 5, and there is no export for the time being.
Dushanzi Tianli High-tech Butanone Unit Shutdown Maintenance
Shun down maintenance of the butanone plant of Fushun Petrochemical
Anhui Cathay Hydrogen Peroxide Shutdown Maintenance
Jiangsu Jinqiao Lihai Hydrogen Peroxide Shutdown Maintenance
Shandong Jufeng Hydrogen Peroxide Shutdown Maintenance
Jiangsu Lee & Man Hydrogen Peroxide Shutdown Maintenance
Shutdown maintenance of hydrogen peroxide in Changling Refinery, Hunan
Anhui Quansheng Hydrogen Peroxide Shutdown Maintenance
CNOOC Ningbo Daxie Propylene Plant Shutdown Maintenance
Shutdown of Shenyang Waxy Propylene Plant
The 100,000-ton cyclohexanone oxidation method plant of Luxi Chemical was shut down for maintenance.
Hubei Shuanghuan soda ash plant was shut down for maintenance, and Jiangxi Jinghao and Yanhu Magnesium soda ash plants were running at reduced load.
Qianxi Coal Chemical's 300,000 tons/year ethylene glycol plans to shut down for maintenance for one month at the end of April or early May.
Shutdown and maintenance of the first phase of MMA in Jiangsu Silbang
Shutdown of Yanshan Petrochemical's butyl rubber plant for overhaul
Environmental inspections and local inspections have become stricter, and some companies have suspended production restrictions
Recently, 8 central ecological and environmental protection inspection teams have carried out inspections for about one month in 8 provinces (regions) of Shanxi, Liaoning, Anhui, Jiangxi, Henan, Hunan, Guangxi, and Yunnan. Although the document emphasizes that the relevant provinces (regions) strictly prohibit simple and rude actions such as emergency shutdowns and production shutdowns in response to inspectors, as well as perfunctory responses such as "all shutdowns" and "stop first, then speak", but in fact, some areas still adopt more "radical" actions. "The way to stop production.
It is reported that the Fourth Central Ecological and Environmental Protection Inspection Team entered Jiangxi on April 7 for a period of one month. Local companies said that affected by this, the scope of rare earth reduction and shutdown companies has expanded again, and it has spread to raw ore separation plants. Previously, most of them were waste separation plants. At present, some plants are ready to stop.
In some places, under the name of "emergency response", shutdowns were implemented according to regions and industries. In addition, some areas have publicly notified in the chemical group that some chemical companies and industrial manufacturing companies will stop production, or even stop production for about one month.
An enterprise in Guangxi reported that some enterprises in the stone calcium carbonate processing industry have recently taken power outages in Hezhou, Guangxi. According to the notice provided by netizens, "According to the requirements of the "Comprehensive Environmental Improvement of the Stone Calcium Carbonate Processing Industry in Hezhou City" Action Chamber Wire and Electricity Plan (-6) and other documents, please do your best Under the prerequisite of protective measures, power outages (removal of one-phase high-voltage incoming lines and retaining domestic electricity) measures were taken for 8 companies. The outage period will start on April 14, 2021."
The company also said that it has been notified that more than a dozen small and medium-sized calcium carbonate companies are expected to be restricted by power outages in a few days. For the manufacturing industry, a power outage is basically equivalent to "stopping production", even if it is a self-provided generator, it is not a long-term solution. Hezhou, Guangxi, as the "heavy calcium capital", has an annual output of 8.5 million tons of heavy calcium carbonate powder, accounting for 35% of the national output. This move may have a greater impact on the output of the domestic calcium carbonate industry. The short supply of products has increased the anxiety of customers. At present, product orders have been full, and orders from major manufacturers have been queued until the end of May.
Whether it is power outages, power rations, or production restrictions or shutdowns, some chemical companies experience intermittent shutdowns for rectification or production cuts for a period of time, which will directly affect the supply of domestic chemical products. This means that the market stock will be further reduced, and the inventory will continue to be low.
Many products are in short supply, and low inventory drives prices higher
Many chemical workers said that after the first quarter price hikes hit the sky, "out of stock" and "out of stock" have gradually become the main rhythm of the chemical industry. Before this, many chemical workers hesitated whether to make emergency preparations or wait and see the situation before taking action. However, the current situation obviously does not give everyone a chance to think. Factors such as major domestic and foreign chemical plants' shutdowns for maintenance, environmental inspections, and special rectifications in the chemical industry have jointly promoted the reduction of chemical industry output and low inventories. The operating rate of some chemical sub-sectors has been less than 60%, and the imbalance between supply and demand is serious, and even facing disruptions，Cargo crisis.
Many chemical companies are eager to set up production lines and increase production, and even full production and sales, but they still can't work in the short term. The supply of chemical raw materials such as bisphenol A and resin is in short supply, and it is necessary to queue up or even place an order in full. In the case of inventory decline and increased reluctance to sell, companies' closure and non-quotation has exacerbated the dilemma of market shortages. Nowadays, the chemical giants have "expressed their stance" to raise the price, and more chemical companies are expected to follow the "weathervane" and continue to raise the price. Under the first-level conduction, many industries such as coatings, finished products companies and even downstream automobile real estate will be affected, and "transitions" will occur.
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