A new round of shutdown of chemical companies has begun!

Recently, the domestic polysilicon price has remained stable at a high level. The current quotation is 30,500-30,700 CNY/ton, an increase of 8,500 CNY/ton or 38.64% from the beginning of the year. The price has been at a high level in ten years. Dachang said that the order has already been signed this month, and orders for July are also being signed one after another. At the beginning of the month, after the 200,000 tons of sealant in Xinjiang Shihezi, Hesheng Silicon Industry was on fire, the organic silicon quickly jumped 4,000 CNY/ton to a high of 30,000 CNY/ton. The major domestic manufacturers did not accept orders, and they did not report to wait and see. Add fuel to the silicone industry, which is already in shortage. Industry insiders predict that the current tight supply and demand pattern will likely continue until around the third quarter. Superimposed on equipment maintenance and intensive safety inspections in large factories, the high price of organic silicon will remain high for a long time.

It is not uncommon for the chemical industry to increase prices due to supply-side tightening and continued low market inventories. Since the outbreak of the epidemic at the beginning of last year, the chemical industry has been hit hard. Businesses start and stop work irregularly, prices are still increasing today, and maybe no more quotations tomorrow; if you can still get the goods today, you may have to line up for 2 months tomorrow. This unpredictable crazy market does not mean to end. Products such as PTA, PP, and PE are all "trapped" into the "chasm" of tightening prices.

Frequent maintenance, the output of many domestic chemical companies reduced in the second half of the year

In the second half of 2021, many chemical companies have plans to maintain their installations, mostly in the third quarter. It is expected that the domestic chemical market is in short supply and prices will remain high and fluctuate.

Around July, Xisar Chemical and Jilin Petrochemical's phenol and ketone plants were scheduled to be shut down for maintenance, and the supply area was shrinking to a certain extent.

Taiwan's Xinchang phenol ketone plant plans to shut down for maintenance from June to July, and it will be available for sale at the end of July.

South Korea's Kumho Phenol and Ketone Plant No. 2 and No. 4 will be overhauled in turn. It is planned to shut down for maintenance from August 21 to September 11.

South Korean LG's 480,000-ton/year phenol ketone plant in Dashan is scheduled to shut down for maintenance from October to November.

Thailand’s PTT Phase II phenolic ketone plant is scheduled to start overhaul in September and is expected to last about one month. By then, the supply of goods from South Korea and Thailand will decrease in the third quarter, and the quantity arriving in China may be expected to decline.

Shandong Yuhuang's 250,000-ton/year styrene plant plans to shut down before June 27 for 25 days of maintenance.

A large-scale styrene plant in South China was unexpectedly shut down on June 21, and the plant was overhauled unscheduled, which had an impact on the short-term supply of styrene.

Ningbo Formosa Plastics PP plant has 170,000 tons/year first line and 280,000 tons/year second line, which will be shut down for maintenance from June 15th to July 20th.

Jiangxi Jinghao's 500,000-ton soda ash plant was overhauled for 15 days in late July.

Inner Mongolia Jilantai's soda ash plant reduced the load on June 26 and was overhauled for 7 days starting on July 26.

Yangmei Group Taiyuan Chemical New Material PA6 plant announced a 50-day maintenance.

Shanxi Lubao PA6 device will be shut down for maintenance for 20 days from June 10th.

A fire broke out in a special PVC plant in Formosa Plastics, Texas, the force majeure will continue until August.
Honggang Petrochemical’s PTA plant was overhauled in July, and the overall overhaul volume is still relatively high. The new plant Yisheng New Materials may be put into production in mid-July. The PTA operating rate was 82.14%, and the overhaul capacity reached 10.365 million tons.
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Whether it is the production contraction caused by shutdown and maintenance, or the failure of normal production and supply caused by force majeure, it is undoubtedly the source of chemical production, and the reduction in output will aggravate the current shortage of supply. June is the safety month. Since the beginning of the month, many provinces, cities and regions have been tightening the control of hidden dangers of safety risks, especially for the chemical industry, where special rectification efforts have been increasing. Many chemical companies are "removing and relocating" due to factors such as environmental protection and non-compliance with safety standards. Coupled with the continuing effects of the epidemic, the chemical industry is already in a state of instability, with prices constantly rising or even breaking historical records. In the current unpredictable circumstances, the anxiety of the chemical industry workers will increase the mood of rush to buy. The chemical people said that in the second half of the year, there should be no slack. Not only did they dare not expect to buy cheap goods, but they only wanted to rush to buy enough supplies to ensure normal production.