Wanhua takes the lead in cutting prices! Epoxy, bisphenol A, butanediol raw materials collectively 'dive'!

Yesterday (27th), Wanhua Chemical issued an announcement that starting from June 2021, the listed price of Wanhua Chemical Group Co., Ltd. in the Chinese regional polymer MDI distribution market is 19,600 CNY/ton (2400 CNY/ton lower than the price in May). The listing price in the direct sales market is 19,600 CNY/ton (down 2400 CNY/ton from the May price); the pure MDI listing price is 21,800 CNY/ton (down 1,200 CNY/ton from the May price).

This is the third time that Wanhua Chemical has announced a price reduction of MDI since April. The listed prices of its MDI products in April, May and June have been significantly reduced. The listed prices of the polymer MDI distribution market have been reduced by 8400 CNY/ton. The direct sales market The listing price has been reduced by RMB 8,400/ton, and the price of pure MDI has been reduced by RMB 6,200/ton.

MDI leader Wanhua Chemical’s “three consecutive falls” is really surprising. I believe that the chemical people were impressed by Wanhua Chemical’s 12 rounds of price increase and nearly 10,000 CNY/ton. Therefore, it lowered product prices for three consecutive months. The behavior of the chemical industry can not help but puzzled. Some people even said that the leading companies have made clear their direction. Are other chemical companies also following the "rhythm" and lowering the prices of chemical products, have the prices of the chemical industry "capped" and are on a "roller coaster" and are beginning to decline gradually?

Tumbled 6000 CNY/ton! Epoxy Resin, bisphenol A, butylene glycol and other chemical raw materials are on the "roller coaster"

According to the analysis of market trends, there are not a few raw material products whose prices have fallen recently. Neopentyl glycol fell 2200 CNY/ton from last week, isobutyraldehyde fell 5400 CNY/ton from last week, epoxy resin, bisphenol A and other chemicals that had set new highs for many years and attracted attention, as well as long-term rises Products such as butylene glycol and propylene oxide have all been on the "roller coaster", and prices have begun to gradually decline. Some products have fallen by more than 6000 CNY/ton within a month, refreshing the chemical industry’s understanding of market trends, and also some companies hoarding stocks. The "fullness ideal" that wants to make a fortune is ruthlessly broken.

On the 27th, liquid epoxy resin was quoted at 31,000 CNY/ton, down by 6,250 CNY/ton from the beginning of the month, a decrease of 16.78%, and more than 12,000 CNY/ton from the high point this year. The quotation of solid epoxy resin was 28,000 CNY/ton, down 5,000 CNY/ton from the beginning of the month, or 15.15%, and 9,000 CNY/ton lower than the high point in the year. The current price of liquid resin has fallen, and downstream demand is relatively weak. Due to the obvious decline of the main raw material bisphenol A, the wait-and-see atmosphere in the epoxy resin market is not diminished. The downstream terminals are expected to be bearish, the operation enthusiasm is low, the pressure on manufacturers' shipments is intensified, the quotations of new orders vary, and the domestic market continues to fall Trend. The supply of solid resin is in short supply, but downstream follow-up is also insufficient. In general, manufacturers’ shipments are generally under pressure, and downstream and terminal purchases are not satisfactory, and new orders are still pending.

On the 27th, butanediol was quoted at RMB 21,475/ton, a decrease of RMB 6,050/ton from the beginning of the month, a decrease of 21.98%. The opening price of Lanshan Tunhe BDO in May was 23,600 CNY/ton and South China was 23,800 CNY/ton, down 5260 CNY/ton from April. In June, it was listed at 20,500 CNY/ton in East China and 20,700 CNY/ton in South China, down 5600 CNY/ton from May. The BDO market in East China is operating weakly, and the middle and lower reaches are still holding a wait-and-see attitude, with limited follow-up buying. There is a strong bearish atmosphere in the market, and it is true that the market is low and the market is low, and low-end offers are heard. The mainstream spot bulk water negotiation in East China is 19700-20000 CNY/ton, down 300 CNY/ton; the barreled negotiation is 22500-23000 CNY/ton (delivered upon acceptance), down 500 CNY/ton.

On the 27th, the price of bisphenol A was 22,766.67 CNY/ton, a decrease of 5013.33 CNY/ton from the beginning of the month, a decrease of 18.05%, and it fell more than 7,000 CNY/ton from the high point during the year. The quotations of some companies have hit 20,000 CNY/ton.
On the 27th, melamine was quoted at 9733.33 CNY/ton, a decrease of 2866.67 CNY/ton from the beginning of the month, or 22.75%.
On the 27th, Acetone was quoted at 5,725 CNY/ton, a decrease of 2,525 CNY/ton from the beginning of the month, or 30.61%. The negotiated price in the East China market is expected to be 5700-5800 CNY/ton.
On the 27th, isopropanol was quoted at RMB 7,175/ton, a decrease of RMB 2,091.67/ton from the beginning of the month, a decrease of 22.57%.
On the 27th, epichlorohydrin was quoted at RMB 13,283.33/ton, a decrease of RMB 1,850/ton from the beginning of the month, a decrease of 12.22%.
On the 27th, TDI quoted at RMB 14,200/ton, a decrease of RMB 1,466.67/ton from the beginning of the month, a decrease of 9.36%. The market learned that Wanhua Chemical’s listing price in May was 17,000 CNY/ton, down 3,000 CNY/ton from the previous month; the April settlement price was 15,500 CNY/ton, down 1,300 CNY/ton from the previous month. Zhangjiagang Free Trade Zone Ouhong International Trade Co., Ltd., the distributor of Covestro’s TDI price is 14,600 CNY/ton, and the price is reduced by 200 CNY/ton; Nanjing Tanqing Chemical Co., Ltd. TDI Shanghai cargo is executed at 14,000 CNY/ton, and the price is reduced by 500 CNY/ton. At present, the domestic TDI market is weakly operating, the market atmosphere is deserted, the enthusiasm for downstream inquiries is not high, the market atmosphere is quiet, and the market outlook is sorted out.
On the 27th, propylene oxide was quoted at RMB 17,633.33/ton, a decrease of RMB 1,266.67/ton from the beginning of the month, or 6.7%.
On the 27th, the price of polymeric MDI was 17,625 CNY/ton, a decrease of 1,250 CNY/ton from the beginning of the month, or 6.62%. In May 2021, the listing price of polymer MDI in BASF's distribution market was 22,000 CNY/ton, which was lower than April by 4,000 CNY/ton. The settlement price in March was 19,500 CNY/ton; Shanghai Huntsman’s listing of MDI for dealers in May 2021 was 22,500 CNY/ton, which was reduced by 5,500 CNY/ton from the previous month, and the settlement price in April was 19,300 CNY/ton. Acceptance (cash minus 300, 500 for bulk water). In recent times, the aggregate MDI market has basically turned around between the "factory control policy" and the "ineffective market shipment". At present, most factories continue to follow the market mentality in the off-season. As a whole, there is no substantial move to support the market, and most of them stay on the news. Controlling goods, so the market also disagrees.
On the 27th, propylene glycol was quoted at RMB 16,900/ton, a decrease of RMB 1,200/ton from the beginning of the month, or 6.63%.
On the 27th, organic silicon was quoted at RMB 26,433.33/ton, down by RMB 1,166.67/ton from the beginning of the month, or 4.23%.

The State Council’s "three combos" has attracted the attention of the supervisory authorities! Prices of bulk industrial products "call back"

The executive meeting of the State Council held on May 26 deployed measures to further support the relief and development of small and micro enterprises and individual industrial and commercial households, and to identify measures to strengthen weak links in rural compulsory education. The meeting pointed out that multiple measures will be taken to help small and micro enterprises and individual industrial and commercial households cope with the impact of upstream raw material prices. Support large enterprises to build a supply-demand docking platform for key industries, use market-oriented methods to guide the upstream and downstream supply chains to stabilize the supply of raw materials and coordinate production and sales to ensure supply and stable prices. Crack down on hoarding and price-raising behaviors.

It is worth noting that this is already the three consecutive "calling" of bulk commodities in the 14 days of the National Standing Committee, and the "three combos" of commodity price increases, making heavy blows to combat hoarding and other behaviors, ensuring supply and stable prices, and helping small and micro enterprises. Respond to the pressure of rising costs.

From April 8th to May 25th, various national departments have made intensive voices on the issue of rising commodity prices, and at the same time introduced relevant policies to improve the monitoring, forecasting and early warning system of key commodities, and strengthen the price control of important livelihood commodities. It also requires strengthening the supervision of the linkage between the bulk commodity futures and the spot market, "zero tolerance" for illegal activities, continue to increase law enforcement inspections, investigate abnormal transactions and malicious speculation, and resolutely investigate and punish agreements to implement monopoly, spread false information, drive up prices, and Hoarding and other illegal activities.

When chemical products continued to rise, many companies said that they would "gamble in May and change Land Rover in June", and chemical people who are optimistic about the rise are hoarding stocks. At present, the "swift turn" from "straight into the sky" to "sudden drop" made them panic. The owners who stocked up all said that let alone Land Rover, they didn't see a tire, and they almost changed their bikes! The price correction of chemical products and the bursting of the bubble are not only behind the changes in the supply-demand relationship brought about by the resistance of the terminal downstream to high prices, but also inseparable from the "big opening and closing" of the international economic situation and the "heavy strike" of the supervisory authorities. Various signs indicate that the current regulators are determined to curb the excessive rise of bulk commodities. It is expected that the bulk commodity market will gradually return to the fundamentals of supply and demand balance, and the growth rate will also decline. In the future, in the ups and downs of the market, how to grasp the price and purchase and sales will require chemical workers to keep their eyes open to rationally analyze and judge.