The market is slamming the brakes? Supervision serial interviews! Malaysia is closed, more than 50 raw material factories are facing 'stop production'!

The covid-19 has once again entered an outbreak period, Southeast Asian countries have closed their countries, and production has ceased one after another! Frequent domestic extreme weather, some factories have been shut down! A new round of "out of stock shortage" may strike again!

However, the supervisory authorities launched a series of attacks to regulate the market, and the hot market encountered "sudden brakes"! Can raw material prices peak?

Recently, extreme weather has occurred frequently in many parts of the country, with heavy rains, hail, and tornadoes happening in turn! Or affect the start of the factory and the transportation of goods!

Strong convective weather occurs frequently in many places in my country. The Central Meteorological Observatory issued a blue warning of strong convective weather at 18:00 yesterday. It is expected that from 20:00 on May 16 to 20:00 on May 17, there will be some areas in Jiangxi, Fujian, Yunnan, Guangxi, Guangdong and other places. 8-10 thunderstorms, strong winds or hail weather.

In Chongyang County, Hubei, heavy rains, strong winds, hail and other weather took turns. The strong winds knocked down dozens of telephone poles in the urban area, causing power outages in more than 10,000 households on three lines.

Prior to this, a tornado occurred in Shengze Town, Suzhou City, which caused damage to power facilities and many houses. According to preliminary statistics, the disaster has caused 4 deaths and 149 injuries. After the disaster, various departments have fully carried out rescue efforts, and the power supply in some areas with outages has been restored. According to statistics, there are 17 damaged enterprises, with a damaged area of 13,000 square meters.

And Shengze Town, Wujiang District, Suzhou City, Jiangsu Province, is a major plastic and chemical fiber town in China: Hengli Group has a 1 million tons of high-performance industrial silk super factory here, and Oriental Shenghong has 2.4 million tons of PTA production capacity in Shengze! In some areas severely affected by the wind disaster, some factory buildings were left with only broken walls, and the iron sheets of the buildings were twisted out of shape.

Heavy rain may lead to difficult shipments, and there may be a high probability of delays. Friends, please pay attention to the process of cargo transportation and remind customers to check whether the goods are damp or damaged after receiving them, so as to make claims in time.

More than 50 raw material factories in Southeast Asia are facing "stop production"!
With extreme domestic weather, foreign epidemics intensified, raw material supply is tightening again!

According to foreign media reports, the outbreak in Malaysia is heating up. It announced a nationwide lockdown from May 12th to June 7th, prohibiting cross-state, cross-county, social gatherings, sports or entertainment activities, closing schools, restricting rides, and requiring employees to work from home Wait.

Under the blockade, many large factories have fallen into production difficulties.
On the one hand, Malaysia is a major semiconductor production center. There are more than 50 semiconductor companies here, including AMD, NXP, ASE, Infineon, and Intel.

In the closure of the country, employees need to work from home, and a large number of factories are restricted in production, which may aggravate the tightness of semiconductor supply.

At present, the chip shortage has caused more than 20 auto companies such as Volvo, GM, Ford, Toyota, and Honda to suspend production. With reduced production capacity, orders from major manufacturers such as TSMC and UMC have been scheduled to next year. Coupled with the impact of Malaysia's "closed country" on production capacity, downstream manufacturers may once again fall into a shortage of materials and stop production, and the corresponding raw material prices will rise again.

On the other hand, in the field of epoxy resins, the trade between China and Malaysia is mainly reflected in bisphenol A. Malaysia is China’s largest export destination of bisphenol A. In 2020, China’s exports of bisphenol A were 13,450 tons, an increase of 35.3% year-on-year, of which exports to Malaysia amounted to 7,922 tons, accounting for 59% of total exports.

In the first quarter of this year, due to the tight domestic supply of bisphenol A and the sharp decline in the export volume of bisphenol A to Malaysia, the total amount in the first quarter was only 10 tons.

By mid-May, the domestic price increase of epoxy resin and bisphenol A has ended, and the market has gradually recovered its rationality. In the first quarter, the force majeure encountered by foreign installations has gradually recovered. Domestic Sinopec Mitsubishi, Nantong Xingchen, Huizhou Zhongxin and other sets of bisphenol installations have been overhauled. The tight supply of bisphenol A in the domestic market has been greatly eased, and export orders are expected to gradually resume.

The prices of epoxy resin and bisphenol A have fallen, and the supply of bisphenol A at home and abroad has gradually increased. In addition to the severe situation of the Southeast Asian epidemic, exports have also been affected to a certain extent. For the domestic bisphenol A industry, it is undoubtedly worse.

Supervision strikes, and the hot market "slams on the brakes"!
At present, the rising trend of raw materials is too hot, and the subsequent rise has gradually weakened! After May Day, there are varieties that have risen by more than 1,000 CNY/ton, and varieties that have fallen more late in the last week have also given up 70% of this round of gains!

In response to the excessively rapid increase in raw material prices, market regulatory authorities in many places have begun to act!

On May 14, the Shanghai Municipal Market Supervision Bureau, the Shanghai Development and Reform Commission, and the Shanghai Economic Information Commission jointly held talks with iron and steel enterprises in this city. The meeting pointed out that the city’s steel companies should actively perform their social responsibilities, effectively strengthen price management, set prices reasonably, and cooperate with the government to do a good job in stabilizing the steel market, and play an active role in optimizing the business environment and ensuring high-quality economic and social development.

The meeting proposed that Shanghai iron and steel enterprises should effectively strengthen price management, set prices reasonably, and cooperate with the government to do a good job in stabilizing steel market prices, and play a positive role in optimizing the business environment and ensuring high-quality economic and social development.

Relevant departments reminded the majority of steel production and operation companies to strictly abide by laws and regulations, regulate price behavior, and must not fabricate or spread price increase information to disrupt market price order; must not collude with each other to manipulate steel market prices; and must not cause significant changes in production costs. Under circumstances, the sales price of steel will be substantially increased, and the price of steel will be increased too fast and too high, which will damage the legitimate rights and interests of other operators and consumers. Once the market supervision department discovers price violations, it will investigate and deal with it in accordance with the law and expose it publicly.
On the same day, Tangshan Municipal Market Supervision Administration, Development and Reform Commission, and Bureau of Industry and Information Technology jointly interviewed steel production enterprises in the city on steel prices.
The Tangshan Municipal Supervision Bureau interviewed and required all steel production enterprises to strictly implement price laws and regulations, strengthen self-discipline, and operate in compliance with the law. They must not collude with each other, and must not fabricate or spread price increase information, and consciously maintain the order of steel market prices and public interests. Illegal acts such as collusion, manipulation of market prices, fabricating and disseminating price increase information, hoarding, and driving up prices shall be strictly investigated and dealt with in accordance with laws and regulations. If the circumstances are serious, they shall be ordered to suspend business for rectification, or their business license shall be revoked and exposed publicly.