DuPont, Eastman and other giants began to raise prices in June!

Yesterday (18th), domestic commodity futures opened in early trading. Asphalt rose by more than 5%, iron ore and Shanghai zinc rose by more than 3%, Shanghai silver and crude oil rose by more than 2%, Shanghai lead and Shanghai tin rose by more than 1%. Apple, Soybean meal and coke rose slightly. Despite the outbreak of the epidemic in parts of Asia, the market's optimism about the rebound in fuel demand in the United States and other regions has increased, and international oil prices have risen. Brent crude oil futures stood at $70 per barrel on the 18th, the first time since March 15. The day before, New York crude oil futures rose 1.4%, hitting the highest level since April 2019, closing at $66.38 per barrel, the highest closing price in two years.

So far, the price of crude oil has risen by 34.7% this year, and it is also the commodity with the largest increase in commodity prices. Corn (33%) and copper (33.2%) are among the top three increasers. Industry insiders analyze that the high level of crude oil volatility is closely related to the Indian epidemic and geopolitical issues in the Middle East.
The epidemic in India is still spreading. The total number of confirmed cases of the new crown pneumonia in India exceeds 24.96 million and the deaths exceed 274,000. Considering that India, as a country with a large population, the consequences will be disastrous if the epidemic goes out of control, so the market sentiment tends to be cautious in the near future. In the Middle East, the atmosphere between Palestine and Israel is tense. Israel has launched multiple rounds of air strikes, and Palestine also fired rockets to fight back. In addition, after the US refined oil pipeline was attacked by hackers, the pipeline was terminated. After the continued closure of ColonialPipeline, concerns about supply shortages have intensified.
The rise in crude oil prices has played a certain role in promoting bulk commodities. In addition, both developed and developing countries have adopted various degrees of fiscal easing to stimulate the economy in order to cope with the impact of the epidemic. Among them, developed countries have "released water" to a greater extent. According to IMF statistics, in the past year, countries have announced a total of 16 trillion US dollars in fiscal actions. Take the United States as an example. Since the outbreak of the epidemic in March 2020, the country’s Ministry of Finance’s economic stimulus plan has reached 5 trillion in total. US dollars, the country is currently brewing an infrastructure stimulus plan worth at least 2 trillion US dollars. The continuous implementation of the quantitative easing policy has led to flooding of liquidity, which has become an important factor driving the increase in commodity prices.
As one of the bulk commodities, chemical products have been gaining momentum recently. Not only have a variety of products hit new highs, but some leading companies have sent letters in advance announcing the price increase in June. It seems that they are confident that the market will continue to rise in June.
DuPont, Eastman and many other chemical industry leaders led the rise, and the price increase in June has been "arranged properly"
Titanium dioxide leader Pantone Venato announced that its global prices for all titanium dioxide pigments used in coatings, plastics, inks and paper applications have increased. This increase will take effect from July 1, 2021.
EMEA (Europe, Middle East and Africa): 180 Euro/ton or 200 USD/ton (approximately RMB 1291/ton);
Asia Pacific/Latin America: US$200/ton (approximately RMB 1291/ton);
North America: US$0.08 per pound (approximately RMB 1138/ton).

The Electronic Interconnection Technology Business Department of DuPont Electronics and Industrial Division: Starting from June 15, 2021, or subject to the contract, the price of some products will be increased. Depending on the product, the price of some parts can rise up to 10%.
DuPont: Based on current market conditions, from June 1st, or subject to the conditions allowed by the contract, the prices of some products will be increased globally, and the price increase will be around US$300-550/ton (approximately RMB 1943-3563 CNY/ton).

Eastman: Starting from June 1st, the price of Estrobond™ B products will be increased globally, with an increase of USD 0.30/kg (approximately RMB 1,936/ton), subject to the contract's permission.

Trinseo, a global manufacturer of plastics, latex and rubber, announced that it will increase the price of all styrene-acrylic and acrylic latex products sold to the North American carpet market from June 1, 2021. The price increase will be 222 US dollars/ton (about 1426 CNY/ton).
Previously, the coating procurement network communicated with chemical companies and learned that although everyone is looking forward to the arrival of the "turning point" and often guessing when the chemical market will "top and rebound", in fact, everyone is aware of the current market trend and future growth. Still "knowledgeable".
Titanium dioxide companies said that for 11 consecutive months of rising and hitting highs, in addition to the outbreak of downstream demand, the price increase of upstream titanium ore raw materials has also played a big role. At present, the upward trend has not stopped, and overseas chemical giants are planning to raise prices in the third quarter. It is expected that there will still be many price increase notices issued at the end of May.
Pigment companies said that since the beginning of the year, phthalocyanine blue and phthalocyanine green have increased by as much as 4,000-8,000 CNY/ton. A single negotiation, full line up, and cash payment are already "pediatrics". The leading iron oxide pigments have increased a lot since the beginning of the year. Secondly, it is expected that prices may still increase in June.
Curing agent products have been out of stock since March, and the price has risen from 35 yuan/kg to 105 yuan/kg, but the shortage has not been alleviated, and the order queuing situation has intensified. From a conservative point of view, it is difficult to alleviate the shortage of curing agents before the end of August, which also means that there is still room for price increases.

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In addition, the coatings, chemical and other industries have stated that the epidemic has not been fully controlled and that the situation of short supply will continue. Factors such as shipping pressure and skyrocketing freight rates have also added fuel to the price increase in the chemical market.