PP PE PVC up to 3000! Shipping costs soared by 1000%! Stopped for maintenance for 50 days, the supply of raw materials is tight again!

Sudden fire + parking for maintenance,

The supply of raw materials is tight again!

▶ A fire occurred in Formosa Plastics PVC, or force majeure until August!
It is understood that a fire broke out in a special PVC plant of Formosa Plastics Texas, USA, and its HCL emission exceeded the limit, and its No. 2 drying device burned from Sunday to Monday. The production base has an annual output of 855,000 tons of PVC and 100,000 tons of specialty resins. It is understood that it has discharged 5,000 pounds of HCL in excess of the standard in the past 24 hours. After the cold wave in February and the flood in May, its chlor-alkali plant has begun to recover. It is understood that PVC production at the base may continue to be restricted from June to July, and exports can only return to normal in August.

In addition, it is reported that Formosa Plastics will restart the PVC plant in Louisiana with an annual production capacity of 513,000 tons at the end of June. The plant is scheduled to start up in early September, more than two months ahead of schedule. June-November is the Atlantic hurricane season, and meteorological experts predict that the United States will usher in an active hurricane season again this year. The performance of PVC installations in the United States is expected to be poor, and the pattern of tight external supply may remain.

▶ PA6 manufacturers plan to stop for maintenance for 50 days! Multi-factory increased by 200!

At present, the overall operating load of PA6 is about 70%. Superimposed Yangmei Group Taiyuan New Chemical Materials announced that the equipment will be overhauled for about 50 days. It is expected that the market inventory is expected to decline, and PA6 slices may restart the upward trend. At present, many manufacturers announced to increase the price of PA6!

On June 16, Fujian Zhongjin New Materials Co., Ltd. announced that the PA6 conventional spinning chip: ZJ2800's quotation was raised by 100 CNY/ton to 14,200 CNY/ton in cash, and the actual order was negotiated.

On June 16, the price of PA6 chips of Luxi Chemical Group Co., Ltd. rose by 200 CNY/ton.

On June 16, the price of PA6 slices from Jiangsu Hongsheng New Materials Co., Ltd. increased by RMB 100/ton to RMB 14,600/ton for acceptance and short delivery. The actual transaction is a single talk.

On June 15, the price of PA6 chips in Yueyang Baling Petrochemical Chemical Fiber Co., Ltd. was raised by 200 CNY/ton for the second time.

On June 15th, China Pingmei Shenma Group Nylon Technology Co., Ltd. raised the price of PA6 conventional spinning chips by 100 CNY/ton for the second time. The actual transaction is a single talk.

The July price increase letter has arrived!

PP PE PVC PMMA rose up to 3100!

As the shortage of some raw materials around the world intensifies, major chemical and plastic companies again plan to raise prices significantly after the holiday.

▶ On June 14, LANXESS announced a global increase in the price of inorganic pigments, effective immediately. The quotation will be increased by at least 150 euros/ton or its equivalent in local currency (about 1163 CNY/ton). In some cases, the price increase may be higher, depending on the product group and production location.

▶ On June 11, Showa Denko Co., Ltd. issued a letter stating that starting from July 1, the domestic sales price of polyvinyl chloride (PVC) will be increased. The price increases are as follows:

Erasrena® powder 25 yen/KG (about 1453 CNY/ton)
Erasren® products 35 yen/KG (approximately 2034 CNY/ton)

▶ On June 11, Mitsubishi Chemical Corporation announced that it would increase the price of ethylene oxide and its derivatives starting on July 1. The increase is as follows:

Ethylene oxide 10 yen/kg or more

Ethylene oxide derivatives 20 yen/kg or more

▶ On June 10, Japan Polypropylene Co., Ltd. issued a letter stating that starting from July 1, the sales price of polypropylene (PP) products will be increased. The increase is 15 yen/kg (about 872 CNY/ton).

▶ On June 10, Japan Polyethylene Co., Ltd. issued a letter stating that starting from July 1, the sales price of polyethylene (PE) products will be increased. The increase is 15 yen/kg (about 872 CNY/ton).

▶Rome Chemicals announced that starting from June 14th, it will increase the sales price of PLEXIGLAS® and PLEXIMID®PMMA in Europe and the Asia-Pacific region by more than 400 Euros/ton (approximately 3100 CNY/ton).

Freight rates increased by 1000% over the same period,

Many shipping companies raise freight rates!

The reason why raw materials continue to soar is that in addition to tight supply and new highs of crude oil, there is also the impact of rising freight rates.

Affected by the epidemic in Guangdong, the freight rate increase caused by the congestion of South China ports has become more and more serious. Congestion has caused a large number of cargo ships and containers to be stranded, and the shortage of capacity has pushed the freight rates of major routes from China to the United States and Europe to record levels. Many shipping companies announced that they will start a new round of fee increases after mid-June!

CMA CGM announced that all reefer containers to Yantian Port will be charged a congestion surcharge of US$1,250 starting from June 11 (the day of shipment).

Hapag-Lloyd announced that from June 15th, the freight rate from Asia to North America will be substantially increased. Small cabinets will rise by US$2,400 and large cabinets by US$3,000.

COSCO SHIPPING announced that starting from June 10, it will increase the peak season fee by US$800/TEU for routes from the Far East to Europe and the Mediterranean.

ONE announced that starting from June 10, a congestion surcharge of $1,000 will be imposed on all cold boxes arriving at Yantian Port. For regulated trade, the effective date will be July 11.

Starting this week, the FAK rate from Asia to Northern Europe will approach $20,000 per 40 feet. This is an unbelievable increase of 1000% from the spot rate a year ago.

At the same time, the Trans-Pacific shipping company will launch an impact on shippers from Asia to the United States from June 15th. The GRI levied on each 40-foot container can reach up to 3,000 US dollars. Some shipping companies currently have freight rates to the east coast of the United States. Reached $17,000/40 feet.
Transatlantic shippers have also felt the impact of rising interest rates, which have risen sharply on a week-on-week basis: Last week, the Baltic Sea Freight Index (FBX) rose by 17% from Northern Europe to the United States, to US$5,069 per 40 feet.

Last week, the FBX index from Asia to the Mediterranean climbed 4% to 10,696 US dollars per 40 feet; the FBX index from Asia to Northern Europe climbed 5% to 11,006 US dollars per 40 feet, but the relevant agencies observed from last week that the UK actually delivered Most carriers offer about $16,000 per 40 feet.
The main driving factor for the new round of sharp increases in almost all trade routes is the congestion crisis in South China ports, especially Yantian Port. According to reports, as many as 40 ships are waiting to berth as of last week. According to industry insiders, the congestion at Yantian Port will have a greater impact on the flow of goods across the Pacific, and importers will be severely affected because their containers have been stranded in southern China for several weeks and are almost or impossible to load.

Short-term PP and PE rebound weakly!

★PE: L09 contract is expected to run in the 7600-7850 interval
1. Yesterday, the Brent price officially broke through 74 US dollars, and the price created a new high in more than two years. The center of gravity shifts upward, and there is a certain short-term technical support.
2. There are signs of weakening on the PE demand side, and the contradiction between supply and demand is gradually emerging. Shandong Luqing Petrochemical, Zhejiang Petrochemical Phase II plant, and PetroChina Lanzhou Petrochemical Changqing Ethane to Ethylene Project plan to start trial production in the near future, putting pressure on the market mentality.

3. The downstream demand for polyethylene is in the off-season, and the start of agricultural film production was still low last week. At present, the contradiction between supply and demand in the domestic PE market is still prominent.
★PP: The price rebounded for 5 consecutive trading days, approaching the 20-day line; the short-term operating range is 8260±100

1. Futures disk: The price rebounded for 5 consecutive trading days, the highest point was close to the 20-day line, and the short-term operating range was 8260±100. If it rebounds above 8370 or there is a chance to enter the market with a short order.

2. Spot market: Futures fluctuated widely, the resource side kept prices unchanged, low-price transactions were acceptable, and the basis margin narrowed slightly; the current market circulation of goods is relatively sufficient, lacking contradictions.

3. Petrochemical inventory was 750,000 tons, down 30,000 tons from yesterday.

4. The current East China basis is 114, a slight drop, but it is still hovering in the middle of the range.