Epoxy resin and bisphenol A chemical raw materials fell collectively!

Yesterday (July 1), Wanhua Chemical’s propylene quoted price was 7,900 CNY/ton, a price reduction of 100 CNY/ton from last week; the quotation of n-butanol in North China was 14,700 CNY/ton, a decrease of 300 CNY/ton from last week; The prices of North China, East China, and South China were respectively 19,800 CNY/ton, 19,900 CNY/ton, and 20,000 CNY/ton, and the quotations were all lowered by 300 CNY/ton from last week...The price "green" undoubtedly made the chemical industry see a little bit Hopefully, "chemical giant" Wanhua Chemical leads the decline. Can it change the trend of price surges in the first half of the year and lead a wave of price corrections?

Epoxy Resin fell 4,000 CNY/ton, a drop of nearly 40% at a higher point

On July 1, the price of solid epoxy resin was about 25,000 CNY/ton, down about 2,000 CNY/ton from the beginning of the month, and 12,000 CNY/ton from the highest value during the year, a drop of 32%. The quotation of liquid epoxy resin is about 26,000 CNY/ton, down about 4,000 CNY/ton from the beginning of the month, and 14,500 CNY/ton from the highest value during the year, a decrease of 36%, which is not surprising. Coatings Purchasing Network communicated with industry insiders and learned that the current epoxy resin is in the "rational callback" stage. In terms of raw materials, the prices of the two major raw materials are generally in the low-to-mid range. Bisphenol A was quoted at around RMB 20,340/ton. After the Dragon Boat Festival, Bisphenol A changed its previous trend and fell by 7.87% for two consecutive weeks. Even so, the current profit of bisphenol A is still the highest in the epoxy resin industry chain. Relative to its cost of about 13,000 CNY/ton, the price of about 16,000 CNY/ton should be the most reasonable, and the current price is still far from the reasonable price. There is a certain amount of room to go lower. epichlorohydrin is quoted at RMB 12,800/ton, and the price is currently relatively stable due to restrictions on local transportation. It is expected that the impact will be weakened in the next few days, transportation will return to normal, and prices will still have room to fall. It is also expected that new production capacity of epichlorohydrin will be put into production next year. The easing of supply-side shortage will also promote price reduction.

At present, there is a serious mismatch between supply and demand in the epoxy resin industry. Previously, demand from downstream powder coatings, wind power, electronics and other industries broke out and greatly spurred epoxy resin. The crazy increase in the price of upstream ring chlorine at the end of 2019 pushed up the ring. With regard to the price of oxygen products, many companies have come across the border to share the "cake", and many companies in the industry have vigorously expanded production, which has also created a situation of oversupply. When the supply-demand relationship is relatively balanced, product prices are more obviously affected by the cost side, but in the case of severe surplus, the impact of downstream demand is obviously greater.

In terms of demand, many epoxy resin companies use the words "not to force" to describe the current downstream situation. The demand of the powder coating industry has been "cut off". Many powder factories adjusted their formulas and switched to polyester resin products when the epoxy price was at a high point. This led to a reduction in the downstream demand for epoxy resin by more than half, plus July and August for powder In the off-season for coatings, material purchases will also decrease. In terms of wind power, customers are not enthusiastic about purchasing, and there is a decrease in electronics and other aspects.

In addition, the transportation of epoxy products has also encountered greater pressure. The decline in transportation capacity, port congestion and tight capacity have caused containers to be “difficult to find”, and shipping schedules have been delayed. Congestion at multiple ports has also pushed up the overall freight rate of domestic export goods. The agency analyzed that this situation of tight capacity and soaring prices will continue to Next year's Spring Festival, this also means that the export of domestic epoxy resin products will be affected at least until next year. The previously hopeful US$120 million infrastructure construction in the United States will bring a boost to domestic chemical products. At present, it is also unable to bring optimistic expectations due to various uncertain factors such as transportation and shipping.

Talking about the expectations of the future market, many epoxy resin companies said that the demand side is insufficient and the orders will not be many. It is expected that the products will show a slow decline in the second half of the year. Because the products cannot be stored for a long time and there are too many uncontrollable factors, manufacturers will also be cautious in receiving orders and production, so as not to cause high inventory pressure. After some of the new production capacity is put into production next year, the supply-side tight trend will ease. If there is still no major pull in the downstream, it is expected that the price trend in the first half of next year will hardly get better.

A rational correction, the overall market of chemical products fell

The previous "high-rise" of epoxy resin has made many chemical industry people jealous, and the chemical industry that has been hit by the epidemic is very envious, but the current "slow fall" has made everyone gradually return to calm from the boom in the first half of the year. Product prices have been lowered one after another.

Bisphenol A was quoted at RMB 20,340/ton, down RMB 1,320/ton in a week;

Butylene glycol was quoted at RMB 17,485/ton, down RMB 565/ton in a week;

acetic acid was quoted at RMB 7,450/ton, down RMB 437.5/ton in a week;

TGIC's price is 64 yuan/kg, which is down 2 yuan/kg in a week;

Daqing Zhonglan Petrochemical Co., Ltd. propylene fell 100 CNY/ton to 7,256 CNY/ton;

The delivery price of acetic acid enterprises in Shandong area is around 7,400-7450 CNY/ton, and the price is lowered by 100-150 CNY/ton. The actual transaction price is slightly lower;

Gaoqiao Petrochemical’s acetone price was lowered by 150 CNY/ton to implement 5,000 CNY/ton; Zhongsha Tianjin Petrochemical’s acetone price was lowered by 300 CNY/ton to implement 4900 CNY/ton;

Yanshan Petrochemical's acetone price will be lowered by 300 CNY/ton to 4850 CNY/ton;

BASF's distribution market will list price of aggregate MDI at RMB 19,500/ton in June 2021, down RMB 2,500/ton from the previous month. In June 2021, Shanghai Huntsman's aggregated MDI settlement price was 17,300 CNY/ton acceptance against dealers (cash minus 300, bulk water minus 500).

"Chemical giant" Wanhua Chemical’s recent frequent price cuts have made many people aware of the changes in the situation. Under the leadership of leading companies, more companies will follow the "rhythm" of this wave of chemical price cuts in the future, and the industry chain will also In the post-epidemic era, it will gradually return to the normal price range.