Plummet! A variety of chemical raw materials plummeted!

Recently, the profit data of industrial enterprises released by the National Bureau of Statistics showed that in the first quarter, industrial enterprises above designated size achieved a total profit of 1825.38 billion yuan, a year-on-year increase of 1.37 times. The upstream industry performed significantly better than the middle and downstream industries. In the first quarter, the industrial economy continued to recover quickly, but the pressure brought by rising raw material prices also began to appear. The continued rise of bulk commodities will subsequently cause continuous differentiation between large and medium-sized enterprises, as well as upstream, midstream and downstream enterprises, and drive the decline of overall corporate profit margins.

Many ministries and commissions have voiced together, and the prices of chemical products have gradually adjusted back

It is understood that the Ministry of Industry and Information Technology, the Development and Reform Commission, the State Council, the Bureau of Statistics and other departments have responded to the hot spots of commodity price increases.

Ministry of Industry and Information Technology: The recent price increases of bulk commodities are mostly short-term and sudden. These structural contradictions have caused the global economic recovery to be difficult and tortuous, and bulk commodity prices do not have the basis for long-term increases.

Development and Reform Commission: This is the result of the interweaving of multiple factors such as the gradual recovery of the global economy, short-term adjustments in the supply-demand relationship, ample liquidity, and speculation. There is no overall or trending change at both ends of the supply and demand of bulk commodities, and their prices do not have the basis for long-term increases.

State-owned Assets Supervision and Administration Commission of the State Council: This is not just a domestic issue. For example, crude oil and iron ore are imported in large quantities in the entire global market. The ups and downs of the market are very normal. Enterprises must first actively study the trend of bulk commodities and better respond to them in their operations.

Statistics Bureau: Judging from the current situation, under the general trend of economic recovery, the quality and capacity of supply are gradually improving; from the perspective of demand, it is still in the process of recovery. In general, the prices of domestic upstream products do not have the basis for long-term increases.

Many ministries and commissions have spoken intensively, claiming that China's economy is deeply integrated into the global economy, and the rise in international commodity prices may affect the prices of some domestic industries through different channels such as trade and investment. However, the prices of domestic upstream products do not have the basis for long-term increases. With the emergence of this kind of voice, prices of commodities, industrial products, and chemicals have all experienced price corrections one after another.

Formic acid fell 550 CNY/ton, a decrease of 18.44%
On the 28th, formic acid was quoted at RMB 2,433.33/ton, down RMB 550/ton from the beginning of the month, or 18.44%. Zhangzhou San'an Chemical's offer was 2,300 CNY/ton, and Liaocheng Transportation Group Hongmao's quotation was 2,210 CNY/ton, which was lower than the previous price. Downstream on-demand procurement is the main focus, the spot prices of merchants follow the market, and the actual transaction price is mainly negotiated.

Aniline fell by 2333.34 CNY/ton, a decrease of 17.86%
On the 28th, aniline was quoted at RMB 10,733.33/ton, a decrease of RMB 2333.34/ton from the beginning of the month, a decrease of 17.86%. On the cost side, the decline in styrene led to the weakening of East China's pure benzene. The prices of downstream polymerized MDI and rubber additives continued to fall. Demand for aniline was generally following, and prices fell.

Propanol fell by 1,800 CNY/ton, a decrease of 16.17%
On the 28th, the price of n-propanol was 9333.33 CNY/ton, down 1,800 CNY/ton from the beginning of the month, or 16.17%. At present, the domestic n-propanol market maintains stable operation, the trading atmosphere on the market is deserted, downstream demand is indifferent, new orders are generally traded, the n-propanol has been under pressure for many days, and the inventory has accumulated. The Shandong and Jiangsu n-propanol factories reported Disk prices fell sharply. The operating rate of the downstream factories of the terminal is low, and the sales resistance of the secondary traders remains unabated. The current price of n-propanol has basically reached the bottom.

Butadiene fell 792.23 CNY/ton, a decrease of 10.68%
On the 28th, butadiene was quoted at 6623.33 CNY/ton, a decrease of 792.23 CNY/ton or 10.68% from the beginning of the month. The domestic butadiene market remains tidy, and the trading atmosphere is weak. The current market supply is relatively abundant, and the downstream rubber market trend is relatively weak, it is difficult to bring a positive boost to the butadiene market, and it is expected that the price will not rebound in the near future.

Polymeric MDI fell by RMB 1,425/ton, a decrease of 6.9%
On the 28th, the price of polymeric MDI was RMB 19,225/ton, down RMB 1,425/ton from the beginning of the month, or 6.9%. The aggregate MDI market in South China is temporarily stable, terminal demand enters the market cautiously, and there is still resistance to high market prices, and the real order inquiries are slightly light; the aggregate MDI market in East China is temporarily stable; the aggregate MDI market in North China is organized and continues be quiet. Wanhua Chemical announced that starting from May 2021, the listing price of Wanhua Chemical Group Co., Ltd. in the Chinese regional polymer MDI distribution market is 22,000 CNY/ton (down 3,500 CNY/ton from the April price), and the direct market listing price is 22,000 yuan/ Tons (3,500 CNY/ton lower than April prices).

TDI fell 983.33 CNY/ton, a decrease of 5.87%
On the 28th, TDI quoted 15766.67 CNY/ton, down 983.33 CNY/ton from the beginning of the month, or 5.87%. The domestic market is operating weakly, the atmosphere in East China is weak, the downstream buying is weak, and the market transactions are not good, so purchases on demand; the market in South China is slow to digest inventory, and the center of gravity is lowered; the market in North China is not followed up with insufficient follow-up negotiations. Insufficient gas, mainly to digest inventory. At present, the downstream is holding a wait-and-see attitude, demand is generally followed up, and the enthusiasm for entering the market is low.
Ethanol fell by RMB 387.5/ton, a decrease of 5.53%

On the 28th, ethanol was quoted at RMB 6,625/ton, a decrease of RMB 387.5/ton from the quotation at the beginning of the month, or 5.53%. At present, prices in the domestic market are falling slowly, inventories in Shandong have risen, and prices have been adjusted; large manufacturers in East China have increased their intention to ship goods, and prices have continued to decline; the center of gravity in the South China market has moved down within a narrow range, and supply inventory is sufficient. Suppliers have been actively shipping before May Day. Based on the inventory of major manufacturers, the price may be lowered.

Acetone fell 450 CNY/ton, a decrease of 5.17%
On the 28th, acetone was quoted at RMB 8,250/ton, a decrease of RMB 450/ton or 5.17% from the beginning of the month. Yanshan Petrochemical’s acetone price was reduced by RMB 250/ton to RMB 8,200/ton; Yangzhou Shiyou’s acetone price was lowered by RMB 300/ton to RMB 8,200/ton. At present, the domestic acetone buying is not good, and the cost-side rising momentum is insufficient.

Silicone fell by 1,300 CNY/ton, a decrease of 4.45%
On the 28th, organic silicon was quoted at RMB 27,933.33/ton, a decrease of RMB 1,300/ton or 4.45% from the beginning of the month. Hubei Xingfa’s organic silicon tentatively reported 28,500 CNY/ton, Shandong Luxi Chemical’s organic silicon tentatively reported 26,200 CNY/ton, Zhejiang Xin’an tentatively reported 29,000 CNY/ton, and Hubei Xingfa’s organic silicon tentatively reported 28,500 CNY/ton. Real order negotiation. Silicone monomer factories mainly deal with pre-orders, and major manufacturers continue to lower the price of silicone DMC, which drives the direction and rhythm of the entire industry.

Dichloromethane fell by RMB 153.33/ton, a decrease of 4.10%
On the 28th, methylene chloride was quoted at RMB 3590/ton, down RMB 153.33/ton from the beginning of the month, or 4.10%. The downstream demand for methylene chloride was mainly weak, and the increase in stocking by merchants was not obvious. The overall inquiry was slightly light, and the support for methylene chloride was weak. As the May Day holiday approaches, vehicle transportation is gradually restricted, and trading volume decreases. Therefore, it is expected that the methylene chloride market will stabilize before the holiday.

In addition, the market for some chemical raw materials has ups and downs like a "roller coaster". In just one week, the price dropped by nearly 1,000 CNY/ton.
Industrial-grade lithium carbonate is quoted at 82,000 CNY/ton, Shangrao Ors Trading Co., Ltd.'s industrial-grade lithium carbonate price is lowered by 4000 CNY/ton to 80,000 CNY/ton; battery-grade lithium carbonate is quoted at 86,000 CNY/ton, Xinyu Guoxing Lithium Industry Co., Ltd. The company's battery-grade lithium carbonate price will be lowered by 3,000 CNY/ton to 85,000 CNY/ton;

Liquid epoxy resin will be lowered by about 3,000 CNY/ton during the week, and some companies will offer 35,000 CNY/ton for delivery in barrels, and the price will gradually decline after going down the altar;

epichlorohydrin was lowered by RMB 1,333.34/ton during the week. Downstream demand was weak. Real order transactions were hard to hear. The phenomenon of some stockholders’ inventory concessions and low-price supplies continued to suppress the industry’s mentality;

Bisphenol A will be lowered by RMB 1135/ton within the week, and offers are scarce. The current downstream purchase intentions are not large. The low-price supply continues to pull down the market, and the holders continue to make profits for shipments;

DMF will be reduced by 1,000 CNY/ton within the week, the willingness to stock up before the holiday is not obvious, the transaction atmosphere is general, and the focus of negotiation is weak;

Propylene fell by 50-200 CNY/ton per day, Shandong HSBC Petrochemical, Qicheng Holding Group, Shandong Dongying Bo Petrochemical, Dongying Hualian Petrochemical Plant, Shandong Haike Chemical Group, Shandong Binzhou Dayou New Energy, Shandong Jincheng Petrochemical Group And other major manufacturers have their prices lowered.

At present, some upstream raw materials are operating weakly, cost support is weakened, and low-priced goods continue to spread. As the replenishment ends at the end of the month, the follow-up of high-priced spot is weak, and the downstream is cautiously waiting and watching. In addition to the May Day holiday approaching, customers generally reacted to further operations after waiting for the market to become clear after May Day. The high prices are hard to come by right now. According to industry insiders, the previously expected situation of unstoppable gains in the first half of the year may have "turning points", and the concentrated voices of multiple ministries and commissions have obviously suppressed the price increase of bulk commodities.