Bisphenol A plummeted 21%, and PA66 was reduced by 2500!

The SFC speaks! Chemical raw materials fell off a cliff!

Since May, following numerous calls from the central government, as well as successive talks and talks with government departments and industry associations, the prices of some commodities have noticed a significant correction.

On May 29, the regulatory authorities once again expressed their views. Li Chao, vice chairman of the China Securities Regulatory Commission, stated at the International Financial Forum 2021 spring meeting that the China Securities Regulatory Commission will adopt a series of measures to improve the investment system of the securities market, cooperate with the promulgation of the futures law, and improve the supervision and control of commodity futures in order to stabilize prices. Actively contribute to the guarantee of supply.

Under the efforts of various parties, the chemical market has shown a continuous downward trend in the past two weeks, and the price bubble has gradually been squeezed.
According to relevant data, in the 21st week of 2021, the commodity chemical sector has an average increase or decrease of -1.09%, and the average increase or decrease of the 20th week is -0.67%.

Specifically, the early-stage skyrocketing varieties almost fell to liver tremor! The spot market for engineering materials has noticed a callback! PA66, bisphenol A, PC, etc. all fell off a cliff! Among them, the bisphenol A market fell by 21% on the 5th, and Changchun Chemical directly lowered it by 5,000 CNY/ton!

Many PA66 manufacturers cut 1,000 yuan, with a maximum drop of 2,500 CNY/ton! It's really just how violent the previous rise was, but now the fall is just as miserable.
In terms of general materials, the price is also declining! The biggest drop this month should be LDPE. The highest monthly drop in South China was 1,583 CNY/ton, the highest monthly drop in East China was 1,622 CNY/ton, and the PP pellet drawing fell by about 200 CNY/ton. PS high-end benzene through South China The region's highest monthly drop was 654 CNY/ton, and ABS Jilin Petrochemical 0215A fell 410 CNY/ton this week.

However, it is worth noting that in the last three days of May, the commodity market began to rebound continuously, and the main contracts such as thread and iron ore all achieved three consecutive rises.

Insiders predict that the market in the later period is expected to tilt more from the policy market to the fundamentals of supply and demand, and the overall market will stabilize. After the chemical market has risen sharply for four months, the repair period will continue for some time. It is expected that the chemical and plastics sector will continue to decline in June.

Oil transportation and industrial production chains will be blocked!

At present, domestic and foreign epidemics are fighting back severely, and many places have begun to block and close the country, and the industrial chain production is blocked again!

China: 27 new confirmed cases in 31 provinces, autonomous regions and municipalities, of which 20 were newly confirmed locally in Guangdong.

Vietnam: Seven mutated new coronaviruses have been discovered, and Ho Chi Minh City announced that it will implement social distancing from May 31. According to regulations, a maximum of 5 people are allowed to gather in public places except schools, hospitals, factories and other places. Other services are suspended except for the provision of daily necessities.

Under the outbreak of the epidemic, the supply chain and production chain were severely blocked, many industrial parks were closed, and factories shut down.

Malaysia: It was announced on the evening of the 28th that in view of the severe situation of the domestic new crown epidemic, it was decided to implement a "total blockade" nationwide from June 1 to suspend economic and social activities.

Malaysia’s “closing of the country” again is bound to have a certain negative impact on the Malacca Strait trade. Many East Asian countries’ oil must pass through the Malacca Strait to reach their country. Once blockade measures are taken, it may affect the normal oil transportation of East Asian countries. GAC, a well-known shipping agency, said that after Malaysia’s “closed country”, shipping business will definitely have an impact, but the extent remains to be seen.

Japan: The epidemic has rebounded extremely rapidly. At present, 9 prefectures and prefectures have implemented the "Declaration of Emergency Situations", and 10 counties have adopted "key measures such as spreading prevention."

Affected by the epidemic, almost all chemical companies in Japan have launched emergency plans. Leading chemical and plastic companies such as Mitsubishi and Toray require the attendance rate of companies to be kept below 20%, and the attendance rate of companies such as Kuraray and Sumitomo Chemical is 30%. about.

It will increase by 1,000 in June!
Freight rates for Asia-Europe routes exceeded US$10,000 for the first time!

Recently, the shipping container freight rate from Asia to Europe exceeded US$10,000 for the first time, setting a new historical record.

The World Container Index released by Drewry shows that the shipping price of a 40-foot container from Shanghai to Rotterdam has soared by 485% compared to a year ago. The spot freight rate for a 40-foot container from Shanghai to Los Angeles soared to US$6,000/FEU in mid-April, and reached US$6,358/FEU this Wednesday.

The market freight rate is already sky-high but it continues to rise. The European route has announced that it will increase by US$500 per box (20-foot container) and US$1,000 per large box from June 1st. The shipping company has indicated that the price of the US line will also increase on June 1.

According to reports, most shipping companies have already submitted reports to adjust the GRI (general freight rate) of USD 1,000/FEU from June 1st. Among them, Hapag-Lloyd submitted a GRI of US$1,200, and the jaw-dropping GRI of US$3,000 took effect on June 15.

According to industry insiders, freight rates for trans-Pacific eastbound routes will rise again next month. If ports in North America and Asia can solve the root cause of freight increases-port congestion, freight rates will stabilize in the third quarter.