Increased to 29,000 CNY/ton! Many chemical companies suddenly stopped production! Downstream madly issued a price increase letter!

After the State Council, the Development and Reform Commission and other departments have repeatedly voiced the price increase of bulk commodities,
Some chemical and other bulk raw materials have been significantly cooled.
But the ups and downs game is still intensifying,
Some leading chemical companies raised prices against the trend, and downstream companies were forced to follow suit.
Recently, there have been many price increase letters flooding the market!

It is reported that the main affected areas are the Caustic Soda installations in the above-mentioned areas. In addition, considering the impact of floods on infrastructure, road transportation may be greatly affected.

It is reported that Formosa Plastics America has an annual output of 513,000 tons of PVC equipment in Baton, Louisiana, and Westlake Chemical has an annual output of 1.27 million tons of liquid chlorine and 360,000 tons of caustic soda in Louisiana.

A number of US chemical giants have continued to stop production due to heavy rains.

The rainy weather last week forced Chevron Phillips to close its 985,000-ton/year HDPE facility in Pasadena, Texas. It is unclear how long the downtime will be, but there will be a clearer picture next week.

Bad weather conditions have also affected the PP market. Total's 1.224 million tons/year PP facility has been affected by force majeure since the cold snap in February and is now hit again. Braskem's 330,000-ton/year PP plant is currently under maintenance and was also affected by rain last week.

▶▶Taiwan Province: Several chemical production lines ceased production

According to Taiwan Power Co., since the heat wave started in early May, power supplies are expected to remain tight for most days in the near future.

It is reported that the production of Taiwan's Petrochemical industry is facing further destruction. In order to deal with the long-term drought + shortcomings, the island has adopted a series of power-saving measures-rolling power outages.

Previous power outages forced the closure of some petrochemical plants, including the polystyrene (PS) plants of Taita Chemical and Kaofu Chemical, both of which have an annual production capacity of 100,000 tons.

Market sources said that Delta Chemical’s plant is expected to restart in the near future, but Gaofu Chemical’s plant may resume production around the end of May. Due to power supply problems, Taiwan's largest petrochemical group Formosa Plastics Group (FPC) suspended production of its 234,000-ton/year polyvinyl chloride (PVC) plant in Kaohsiung from May 18 to 19, causing a short suspension of operations.

Taiwan has also been fighting a prolonged drought, the worst drought in 56 years, as petrochemical producers have restricted the supply of industrial water, which has exacerbated the problems for petrochemical producers. In Taichung, Taiwan’s second largest city, the government shuts down water taps two days a week.

Taiwan said on May 19 that if there was no significant rainfall at that time, it would tighten water restrictions in Hsinchu and Taichung from June 1.

With the temporary cooling of the raw material market, the chemical giants are still "raising prices"! Forcing downstream prices to rise sharply!

▶▶ Carbon black giant Cabot announced a price increase! The price increase in July has been arranged!

On May 20th, carbon black giant Cabot (China) announced that starting from June 1st, it will uniformly increase the price of all rubber carbon black on sale by RMB 1,200/ton.

As early as May 12, Cabot announced that the price of all carbon black products in North America would increase by US$0.06/lb (approximately RMB 852/ton) from July 1 or subject to the customer’s contract.

▶▶Coating-related companies are raising prices!

In view of the continuous increase in the price of various raw and auxiliary materials such as iron sheet, Sulphur, acid cracking, steam, etc., the comprehensive cost of the product has continued to increase. A series of price increase letters have been issued, announcing that the prices of iron oxide pigments, small packaging barrels, titanium dioxide pigments, imitation stone paints, latex paints, floors, and Kiev materials have increased across the board, ranging from 300 CNY/ton to 1291 CNY/ton .

▶▶Letter of price increase for other raw materials:

Sodium trimer carbonate, sodium pyrophosphate, trisodium phosphate, lime and other products are also rising in price.

This week, although the prices of some chemical raw materials have cooled, there are still many raw materials in a state of rising prices.

▶▶Raw rubber: environmental protection, power outages, etc. promote the price soaring to 29,000 CNY/ton

As the raw rubber device is subject to environmental protection factors and other shutdowns for maintenance, and the upper limit of electric peak shift production is also affecting the normal operation of the rubber compounding plant, the raw rubber market has continued to operate strongly recently.

▶▶Yellow Phosphorus: Up 5133 CNY/ton in two days! Increase 27.21%

Also affected by power outages, yellow phosphorus has been pulled up this week, breaking through 20,000 CNY/ton in one fell swoop, approaching the 25,000 CNY/ton mark.

▶Phosphoric acid: today's price is 5683 CNY/ton, up 7.57% in two days
▶Caustic soda: today's price is 483 CNY/ton, up 5.46% in two days

Now that the market is both ups and downs, with national regulation + power and production restrictions + frequent price increases by international giants, the game has begun, warning that the chemical market will maintain a strong and turbulent pattern in the short term.