The United States has declared a state of emergency! Chemicals soared 3000 CNY/ton!

In recent days, the matter of "the United States has declared a national emergency" has topped the hot search lists on many media platforms and quickly attracted attention. On the 7th, Colonial Pipeline, the largest refined oil pipeline operator in the United States, was attacked by ransomware. Hackers used illegal software to control its computer systems or data. Colonial Pipeline was forced to shut down its critical fuel supply network in the eastern coastal states of the United States. The incident alarmed US President Biden who was on vacation at Camp David. A White House spokesperson said that US President Biden was briefed on the matter on Saturday morning. On May 9, local time, the United States declared a national emergency.

U.S. energy "main artery" is "cut", international oil prices rise in response
Colonial Pipeline operates the largest refined oil pipeline system in the United States. This is not only an oil pipeline, it can be said to be close to the "main artery" of US infrastructure. This 5,500-mile pipeline system runs between Houston, Texas and Linden, New Jersey, transporting more than 2.5 million barrels of fuel per day. The scope of services covers gasoline, diesel, jet fuel and heating oil and other fuels, and services for US military installations. As of the 9th, the main pipeline of the pipeline was still interrupted, and the restoration date has not yet been given. According to people familiar with the matter, the Colonial Pipeline pipeline company issued a warning to state officials at a private meeting on Monday that although the company plans to reopen the pipeline later this week, supply shortages may still occur.

People in the energy industry believe that the cyber attack on the 7th is known to have occurred in the United States so far as "the most destructive attack on energy infrastructure." This line was called by an analyst as the "throat of infrastructure" in the United States. If the pipeline is closed for a long period of time, it will cause gasoline retail prices to soar before the summer driving season, which may cause a blow to American consumers and the economy. This incident has raised concerns about the shortage of gasoline, diesel and jet kerosene. If the crisis continues, it will push up U.S. oil prices and disrupt the U.S. and even the global energy market. ING Economics said in a report that "the biggest unknown is how long the shutdown will last, but it is clear that the longer the shutdown lasts, the more optimistic refined oil prices will be."
The above news also directly caused price fluctuations of some energy commodities. In early Asian trading on Monday (10th), US gasoline futures rose more than 4% to $2.217 per gallon, the highest since May 2018. US heating oil futures also rose to their highest point since January 2020. In terms of international oil prices, the US WTI crude oil futures price rose 1.08% to US$65.59 per barrel, and the London Brent crude oil futures rose 1.1% to US$69.03 per barrel.

International crude oil surges, the chemical industry quickly "responds" with a maximum increase of 3,000 CNY/ton
The rise in the price of international crude oil has obviously played a role in boosting the chemical industry. The petroleum industry chain and derivative industry chain products quickly "responded." According to incomplete statistics from the Coatings Purchasing Network, dozens of chemical raw materials have shown an upward trend since May, and leading companies have seized every opportunity to announce the increase first. Trinseo and ExxonMobil's products have increased by more than 1,000 CNY/ton, while chemical products such as n-Butanol, isooctyl alcohol, and Butyl Acrylate have risen one after another, up to a maximum of 3,000 CNY/ton.
Trinseo issued a letter stating that its European subsidiaries have announced an increase in the prices of all grades of PS, ABS and SAN resins in Europe. From May 1, 2021, or according to the existing contract terms, the contract and spot prices of the following products will be adjusted upwards:
Styron GPPS raised 105 euros/ton (approximately 818 CNY/ton);
Styron and Styron A-Tech, Styron X-Tech and C-Tech HIPS raise 105 Euro/ton (approximately 818 CNY/ton);
Maichun ABS resin will be raised by EUR 160/ton (approximately RMB 1,247/ton);
TYRIL SAN resin is raised by 170 Euros/ton (approximately RMB 1,325/ton).
ExxonMobil decided to increase the price of Santoprene (TPV) products by US$200/ton (1286 CNY/ton) from now on.
On the 11th, the price of n-butanol was 16,000 CNY/ton, an increase of 3,000 CNY/ton within the month, and an increase of 19.71% in the three days after the holiday.
On the 11th, isooctyl alcohol was quoted at 16,500 CNY/ton, an increase of 2,300 CNY/ton within the month. The manufacturer's price is around 16,800 CNY/ton, the upstream propylene market is consolidating at a high level, the cost of isooctanol is better supported, and the downstream procurement enthusiasm is better. Recently, the isooctanol plant has been shut down for maintenance and insufficient supply.
On the 11th, butyl acrylate was quoted at RMB 18,600/ton, an increase of RMB 2,166.67/ton during the month.
On the 11th, Aniline was quoted at 11566.67 CNY/ton, an increase of 833.34 CNY/ton during the month. The current supply of aniline in the market is still tight. The mainstream negotiation in East China is at 11520-11700 CNY/ton for acceptance, the mainstream negotiation in North China market is at 11300-11400 CNY/ton in cash and 11520-11620 CNY/ton.
On the 11th, cyclohexanone was quoted at 11060 CNY/ton, an increase of 640 CNY/ton within the month. The market price of cyclohexanone in East China has risen, and the cost support is strong. The quotations of cyclohexanone manufacturers follow the increase. The market price in East China is 11100-11300 CNY/ton cash delivered. The market price of cyclohexanone in Shandong has risen, and the listing of pure benzene continues to increase by 300 to 8,000 CNY/ton, and corporate quotations follow the increase in costs. Shandong ex-factory price is 10900-11000 CNY/ton cash self-pickup, and the market price is 10900-11,000 CNY/ton cash self-pickup or short delivery.
On the 11th, pure benzene was quoted at RMB 8,030/ton, an increase of RMB 620/ton during the month. After Sinopec raised 300 yuan to 8,000 CNY/ton, the market was active, and the spot transaction reached a high of 8,300 CNY/ton.
On the 11th, propylene oxide was quoted at RMB 19,400/ton, an increase of RMB 500/ton during the month, and Wanhua Chemical’s propylene oxide price was RMB 19,800/ton, with an increase of RMB 500/ton during the month.
On the 11th, phenol was quoted at RMB 9,380/ton, an increase of RMB 460/ton during the month. The raw material pure benzene is improving, and the price of phenol factories has been raised. With the support of the favorable support, the holdings have controlled the volume to increase.
On the 11th, styrene was quoted at RMB 10,133.33/ton, an increase of RMB 383.33/ton during the month. Pure benzene is mainly strong, styrene cost is supported well, and spot supply is still tight, it is expected that styrene will maintain a high level of consolidation.
On the 11th, propylene was quoted at 8313.91 CNY/ton, an increase of 268.09 CNY/ton during the month.
International oil prices are expected to surpass 100 U.S. dollars, and the chemical industry's rising trend will not stop
For the later oil price trend, most institutions are optimistic. U.S. crude oil inventories have dropped significantly, which has a certain boost to oil prices. Goldman Sachs expects the price of Brent crude oil to reach US$80 per barrel in the third quarter. Some analysts pointed out that in the frenetic market atmosphere, international oil prices may rush to a high of $100 in the future. Some traders in the market have even purchased three key months of crude oil options in advance at a price of $100 per barrel.
The Chinese market recovered quickly and maintained a good momentum of growth. Although there are still variables in the current crude oil supply and demand relationship, the market generally remains optimistic. The agency believes that the new demand for crude oil will be greater than the reduced demand, so oil prices generally show an upward trend. As the source of the chemical industry, the price of petroleum products, which is also an important energy source in the world, fluctuates at high levels, which will undoubtedly have a huge impact on the chemical industry chain and derivative industry chains. The existence of many variables in the second quarter has become a boost to the price increase of chemicals. Invisible push hand.