Chemical giants led the price increase, and the price hike in August kicked off!

In 2021, the chemical industry is inseparable from the word "price increase". From the beginning of the year when the chemical industry was caught off guard by the price increase of bulk commodities, to the national macro-control, the price of chemical raw materials fell slightly, and then the price of chemical raw materials continued to rise. Half of the price in 2021 has passed. In the past six months of price beating, it seems that chemical industry people have been familiar with price increases.

Summer is destined to be a season of price increases. The suspension of production and maintenance of chemical plants and the high temperature in summer have caused orders to accumulate and transportation. It is almost impossible to drop prices. Major chemical companies have already increased prices in July, and the temperature has risen even higher. In August, the price increase has become a fixed number.

Major chemical companies have issued price increase letters recently, announcing that they will continue to increase prices in August.

BASF

Recently, BASF announced that it will increase the price of North American polyurethane system products shipped on or after July 15, 2021 by USD 0.10/lb (approximately RMB 1,418/ton)

Kuraray

Starting from August 1, the prices of all grades of the company's SEPTON™, HYBRAR™ hydrogenated styrene elastomers and TU polymers have been increased globally by USD 0.33/lb (approximately RMB 2,138/ton).

Resin manufacturer AOC (Aliancys)

From August 1st, the price of all grades of vinyl ester resins in the Americas will increase by US$0.14/lb (approximately RMB 1985/ton).

ORION (formerly Evonik Degussa)

From August 1st, the company’s rubber carbon black price has been raised by US$130/ton (approximately RMB 841/ton). In addition, the announcement also announced adjustments to service surcharges and payment terms to reflect higher costs.

DENKA

Due to the increase in the cost of raw materials such as polystyrene, the company decided to increase the price of some polystyrene products by 27 yen/kg (approximately 1,572 CNY/ton) from August 1.

JSP Corporation

From August 1, the selling price of expanded polystyrene sheet (PSP) will be increased by 27 yen/kg (approximately 1,576 CNY/ton) or more.

Cabot

Starting from August 1, Cabot Norit Activated Carbon Company will increase the price of all activated carbon products worldwide by 10%-20%.

Kansai Paint Co., Ltd.

From August 1st, industrial coatings will be increased by 15-25%, curing agent 30-40%, and thinner 15-20%; general (construction, anti-corrosion, automobile maintenance) coatings will be increased by 10-20%, thinner Increase 15-20%; freight increase 10%-15%.

Tiger Polymer Co., Ltd.

The price of the company's products will be increased, for products including resin hoses, rubber sheets, and extruded products. The price will increase by more than 20% from August 1st.

Mitsubishi Chemical

For the biaxially stretched polystyrene sheet (OPS) "Santock" and "soft and transparent", the price will be increased from the delivery part on August 1, and the revision rate will be 27 yen/kg (about 1574 CNY/ton) or more.

The price increase of the chemical giants will inevitably affect the price of the domestic chemical industry. Presumably, within half a month, major domestic chemical companies will also issue relevant price increase letters one after another.

At the same time, according to customs statistics, in the first half of 2021, China’s exports exceeded 8 trillion yuan, a year-on-year increase of 3%; due to the impact of the epidemic, China’s maritime cargo will continue to increase from 2020 to 2021, and 95% of the containers in the peak period are Chinese. Foreign trade goods.

Due to factors such as the congestion of the Suez Canal and repeated epidemics, the speed of shipping has slowed, and port stocks have burst in succession. It is difficult to find a container to increase shipping prices. According to the Shanghai Shipping Exchange and the Baltic Freight Index, freight rates from Shanghai, China to Europe have risen continuously in the past 10 weeks.

According to the Drewry Global Freight Index, as of July 1, the average global freight rate for 40-foot containers was as high as US$8,400, and the listed freight rates for some Chinese ports to Europe and the United States were as high as US$32,000.

The peak season for overseas stocking starts. For Western Halloween, Black Friday shopping festival, Christmas and other goods will be shipped from August to December, plus multiple adverse factors such as difficult bookings, serious port congestion, and unstable shipping schedules, shipping The market freight rate will remain high.

In addition to the aforementioned major domestic and foreign plants' installations in the second half of the year for maintenance from July to August, the mass production of the installations stopped and reduced production. According to a comprehensive estimate, the price hike that started in July will continue until October.