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The chemical plant collectively shuts down for maintenance! The price increase is coming again!

Echemi 2021-05-06

Recently, epoxy resin companies in the Huangshan area of Anhui reported that the environmental protection inspection team was stationed in Anhui, and the local solid epoxy resin companies were in the stage of suspension of production. Among them, about 40% of the production capacity of enterprises in the Shexian Park was affected, and about 60% of the production capacity of the enterprises in the Huizhou Park was affected. The Huangshan area of Anhui is the main domestic production base of solid epoxy resins, and its output accounts for about 60% of the national total. The suspension of production restrictions will have a greater impact on the local epoxy resin production and even the national market. People in the industry It is expected that the epoxy resin market will still be in short supply in the short term.


In addition to solid epoxy resin companies, many chemicals such as titanium dioxide, styrene, silicone, MDI, acetic acid, etc. have also been in a state of imbalance between supply and demand recently, whether it is due to objective reasons being stopped and restricted, or due to subjective reasons. Sudden closures have added fuel to the market that is already in short supply, and it has also greatly promoted the price of chemical products.

Titanium dioxide companies have sealed orders and will rise sharply in May
At present, many manufacturers in the titanium dioxide industry have sealed orders and said that a new round of price increases will be launched in May. The implementation price of some brands in East China has been raised. Chuangda Yutu sent a letter to raise the price by 1,000 yuan/ton. Chemours also recently announced that its titanium dioxide products would be raised by US$200/ton. It is expected that more companies will raise their quotations in May, and major overseas manufacturers also plan to send letters to raise them by about US$200/ton in the near future. The current price of rutile titanium dioxide is more than 20,000 yuan/ton, and the list of titanium dioxide is still continuing.


Companies such as Wanhua, LG, Mitsubishi and others stopped for maintenance, and the PC industry chain soared nearly 10,000 yuan/ton
Recently, Teijin Co., Ltd. announced that due to the skyrocketing cost of bisphenol A, the prices of some accessories such as PC/ABS and ABS resins continue to soar and the ocean freight costs continue to rise, and the price of PC has to be increased. The price increase will take effect on May 1st. :
PANLITE® (PC-based resin) will be raised by USD 1.5/kg (equivalent to RMB 9728.9/ton);
MULTILON® (PC-based alloy resin) is raised by USD 1.5/kg (equivalent to RMB 9728.9/ton).


At present, the domestically produced PC device with an annual output of 130,000 tons of Lihuayi can maintain a normal operating situation, and the start-up of other domestically-made devices has decreased (or stopped).
Shanghai Mitsubishi's 100,000-ton/year PC device planned to be overhauled in May;
The 150,000-ton/year PC device of Jiaxing Teijin plans to overhaul in October;
Wanhua Chemical’s 210,000-ton/year PC device planned to be overhauled in August;
LG Chem's 170,000 tons/year PC device plans to be overhauled from June to July;
Taihua Idemitsu’s 200,000-ton/year PC device plans to be overhauled from September to October...
At present, the supply of domestic imported materials is tight in many places, and manufacturers are mainly operating under cost pressure. Therefore, the tight supply of domestic PC sources will continue; with the continuous consumption of imported goods in the market, the profit will be higher in the middle and late this month. Cost-imported goods arrive in Hong Kong, and supported by the high price of raw materials, it is difficult to have a substantial price cut in the near future.


Aggregate MDI stopped falling and rebounded, and the company was overhauled and the market load was low
The domestic aggregate MDI market stopped falling and rebounded. At present, the factory's attitude towards the market remains unchanged, and multiple positives have been released one after another. The load of some domestic enterprises is relatively low, and the overhaul of overseas installations has caused the supply and demand of MDI to remain tight, and some downstream replenishment.
On the supply side, the domestic Ruian plant started to maintain a low level, Shanghai Huntsman arranged a shutdown in May for maintenance, and the rest of the country was operating normally. Overseas Japanese Tosoh Nanyang 13+70,000 tons MDI device storage and maintenance plan in May; South Korea BASF shuts down for maintenance. The downstream refrigerator-freezer factories maintained good production and sales, and the manufacturers' quotations remained high, and the willingness to stabilize prices was obvious.


Silicone load is not high, some companies are closed, Dow plans to increase prices
The Elkem silicone device is currently overhauled and temporarily sealed. Tangshan Sanyou reduced the burden for maintenance, and the start-up load of Dongyue, Xingrui Silicon Materials and other devices was not high, and the shrinking supply brought a price boost. According to industry sources, the US-based Dow Silicones (DowSilicons) will increase its quotations for its silicone products from May, and its distribution agents have begun to notify downstream companies of price adjustments since early April.

Spots are tight, acetic acid continues to rise
The domestic acetic acid market is at a high level, the supply of the market continues to be tight, and the mainstream downstream industries are strong, and the acetic acid market passively continues to be in short supply. The South China market has recently been out of stock, and some suppliers actively participated in the bidding by manufacturers in Central China, which promoted the sharp rise of supply prices in East China and Central China. The prices sent to the South China market rose sharply along with the trend, and prices in various regions of the market fluctuated at high levels. The tight supply of acetic acid in the short-term market is difficult to change, and the market is mainly at a high level temporarily.
The acetic acid plant of some manufacturers was shut down for maintenance, the company's inventory was insufficient, the downstream demand remained strong, the spot supply on the spot continued to be tight, and the price of acetic acid went up. Henan Shunda's acetic acid plant failed to restart, coupled with the unexpected shutdown of Jiangsu Thorpe's acetic acid plant, the short-term supply gap was difficult to make up, and the supply of acetic acid was pushed up the channel. The quotation of Jiangsu Baichuan High-tech New Materials was increased by RMB 100/ton to RMB 9,750/ton; the quotation of Jiangsu Lianhai Acetic Acid Biotechnology was increased by RMB 50/ton to RMB 9,650/ton.
Jilin Petrochemical, Liaotong Chemical, etc. parked for maintenance, ABS high vibration
Boosted by the recent rise in styrene and increased ABS short-squeeze sentiment, prices in the South China market rose slightly, low-price offers were withdrawn, and discussions were still focused on small orders. The short-term ABS market is expected to fluctuate at a high level.
In South China, 0215A products of Jilin Petrochemical rose 150 yuan/ton daily; Ningbo Taihua AG15A1 products rose 150 yuan/ton daily; Ningbo Taihua AG15E1 products rose 100 yuan/ton daily. In addition, many companies have plans to suspend production for maintenance in the near future. Jilin Petrochemical will park for 5-6 days from June 10th to July 18th, maintain for 23-29 days, and drive for 4 days, totaling 39 days; Liaotong Chemical is tentatively scheduled to 7 The monthly installations will be overhauled for 40 days, and all will be shut down; Tianjin Dagu is tentatively scheduled for maintenance in August.
Encountered the risk of out of stock, styrene continues to be high
At present, styrene inventory is low, and the risk of short-term shortage has not been completely eliminated. The northern market has an active enquiry atmosphere, and the disk has been running at a high level for three consecutive days. The spot supply in East China is tight, and the price has risen from 9,350 yuan/ton at the beginning of the week to 10,608 yuan/ton. The continuous upside-down of the internal and external disks, coupled with the frequent shutdowns of foreign installations, has resulted in a significant reduction in imports. In addition, many domestic companies have plans for parking maintenance in the near future, which will also promote the reduction of market inventory.
North Huajin's 15+27 thousand tons/year styrene plant was overhauled for one month in July.
Jilin Petrochemical's 14+32 million tons/year styrene plant will be overhauled from May to June.
Fushun Petrochemical's 60,000-ton/year styrene plant began 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.
Maoming Petrochemical’s 100,000-ton/year styrene plant was shut down for 30 days in June for maintenance.
Xinpu Chemical’s 320,000-ton/year styrene plant was shut down for 25 days from October to November for maintenance.
The first phase of CNOOC and Shell's 700,000 tons/year styrene plant cracked the whole plant for 50 days in late October.
Shandong Yuhuang 2# 250,000-ton/year styrene plant will be shut down for maintenance for about 40 days from May to June.
Ningbo Nanya, LG Chemical and other companies stop production, and BPA stocks are low
At present, the inventory of bisphenol A is low and the spot is tight. Nanya Plastics has no offer for the time being, and Sinopec Mitsubishi's plant is shut down. In the future, many chemical companies still have parking arrangements for maintenance, which will further reduce market inventory.
Ningbo Nanya's 150,000-ton/year bisphenol A plant has a maintenance plan in July or August.
LG Chem’s 450,000-ton/year bisphenol A plant plans to undergo minor repairs for 15 days in May, and to shut down for 45 days in August.
Kumho’s 450,000-ton/year bisphenol A plant plans to overhaul two lines in May (Line 2 is scheduled to stop for 20 days from May to June, and Line 3 is scheduled to be overhauled in October).
Sinopec Mitsubishi's bisphenol A plant was shut down from April 10th to May 12th, and the maintenance period is about one month.
Baofeng and CNOOC shut down a total of 3 million tons of equipment for maintenance, and methanol is expected to be bullish
Shandong's tight supply, coupled with downstream stocking, has supported the industry's mentality. The main production areas are boosted by dual control, spring inspections, and some olefin outsourcing increases. The overall inventory is generally low, and some limited-quantity vehicles are still in the situation. The May Day holiday is approaching, and the midstream and downstream actively stock up/replenishment to accelerate the pace of capacity turnover. The willingness to stop sales/restrict sales/installation in the northwestern main production area is still strong before the holiday, and the overall freight rate has shown a clear bottom volatility rising rhythm recently. The operation and the unsuccessful restart of some overhaul projects are boosted by factors such as the fact that formaldehyde products are expected to be bullish in the short term.
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 plans to shut down in May for maintenance.
Shandong Wittur, Serbon Petrochemical, etc. stopped for overhaul, butadiene quotation was firm
Affected by the improvement of downstream atmosphere, domestic butadiene offers are currently firm, supply in East China is decreasing, and supply is still under pressure. Recently, many companies have arranged for parking and maintenance, and the market supply may be further reduced.
The 100,000 tons/year butadiene oxidative dehydrogenation unit of Jiangsu Sierbang Petrochemical was shut down for maintenance, and the listed price was stable at 7,300 yuan/ton.
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.
Shandong Weite Chemical's 60,000-ton/year butadiene extraction unit continued to shut down, and the restart time is unknown.
Overhauled equipment with an annual output of nearly 800,000 tons, PP inventory dropped, and prices rose broadly
At present, domestic PP inventory is declining, the market trend is fluctuating, and prices are also showing a broad upward trend. Downstream factories mostly purchase on-demand, but purchases will increase under the upward trend. In the second quarter, overseas PP installations will be shut down for maintenance and will have a certain impact on the market.
India's Haier Dia's 350,000-ton/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.
Fushun Petrochemical, Jilin Petrochemical, etc. were overhauled by the end of June, and pure benzene broke through the highest level since 2018
At present, the spot price of pure benzene in East China has risen to 7,240 yuan/ton (out of cans in East China), which has almost broken the high since 2018. Since the beginning of the first quarter, factories in the Middle East, Japan and Southeast Asia have been shut down for maintenance. Therefore, market prices have also risen under the expectation of short-term Asian supply shortages.
Inventories of pure benzene East China ports began to peak and fall, while new downstream production capacity and operating rates were relatively high. Demand for pure benzene procurement and delivery performance was very impressive. In the short term, pure benzene is expected to remain stable. In the first half of the year, the domestic market's production and supply trend tightened, and the maintenance period of several major refineries in East China lasted from March to June.
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.
power failure! Enterprises in key areas of calcium carbonate cannot produce normally
Recently, calcium carbonate companies in Hezhou, Guangxi reported that local power cut measures have been implemented for some companies, which means that it is difficult for companies to produce normally. Hezhou, Guangxi, as the "Heavy Calcium Capital" in China, produces approximately 35% of the country's calcium carbonate. The suspension of production restrictions by local companies is no joke for downstream companies, and anxiety has also soared. At present, orders for calcium carbonate products are full, and orders from major manufacturers have been queued until the end of May. Some companies have already sent letters to raise the price by RMB 30/ton. Local companies said that the current tightening of environmental protection policies will play a major role in reshuffling local and even national calcium carbonate companies, or will subvert the product's history of unchanged prices for many years, and prices may rise again.


Whether it is the shutdown and production restrictions caused by stricter environmental protection, the management of power outages and gas restrictions in some areas of chemical companies, or the routine shutdown and maintenance of dozens of chemical companies, it will bring about the supply of chemical products in the market. influences. Under the combined effect of these factors, the chemical market’s inventory is low, and the imbalance between supply and demand has become more and more serious. From "overcapacity" to "supply in short supply", it seems that this change will be completed in an instant. Looking at the dynamics of big companies' announcements, we can also know that in the future, more companies will "keep up with the pace" and continue to rise.

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