Tens of thousands of chemical plants shut down due to floods!

Henan and Hebei continue to issue red warnings!

Tens of thousands of chemical plants are affected!
The extreme heavy rainfall in Henan Province continues to affect the hearts of the people across the country! According to incomplete statistics, the Henan flood disaster has caused 33 deaths, 8 people lost contact, and more than 470,000 people were affected.

Judging from the current preliminary verbal communication, Zhengzhou is the worst-hit area. Rainfall in other areas is also relatively heavy, but production is still relatively stable for the time being, but transportation and shipment are affected.

Affected by this precipitation, several communities in Zhengzhou have issued notices of water and power outages. Heavy rain has caused rainwater to pour into power distribution rooms in some areas. In order to avoid electric shock and casualties and longer power outages after equipment damage, Henan Electric Power has cut out part of the power supply equipment.

At present, some local optical cables and base stations are affected, some regional networks are interrupted, and users' mobile phone signals are affected. China Mobile's Zhengzhou branch had power outages at 3,563 base stations, and 3,152 base stations were decommissioned. The operator reflects that it is affected by the weather. Due to muddy roads and other impacts, traffic cannot be opened, and the transportation of generator vehicles is restricted, resulting in slow repair progress.

According to news from the National Development and Reform Commission, relevant civil rights organizations actively responded and requested to pay close attention to the development and evolution of rain conditions, and make immediate emergency dispatches for railways, highways, electric power, natural gas, and refined oil products. At the same time, they must learn from one another and effectively respond to other aspects; Give full play to the emergency backup power operation mechanism, increase cross-provincial support, and make every effort to ensure the stable supply of coal, electricity, oil and gas in Henan Province. Through the joint efforts of all parties, as of 8 o'clock on the 21st, 450,600 users have achieved normal power supply, about two-thirds of important users have restored power supply, and the rest of the power users are doing all they can to repair.

In addition, it is worth noting that Zhengzhou is also a well-known textile city base in China, with thousands of large and medium-sized factories and enterprises dealing in textile and chemical fiber products. For the sudden natural disaster, the textile enterprise bosses were caught off guard. The fortune teller learned from various channels that the Zhengzhou textile factory has been affected to varying degrees, and the picture of the destruction can be described as shocking.

The operation of the Zhengzhou Commodity Exchange (hereinafter referred to as the Zhengzhou Commodity Exchange), one of the five futures exchanges in the country, located in the center of heavy rains and floods, has also attracted outside attention. Public information shows that the headquarters of Zhengzhou Commercial Firm is located at No. 30, Business Waihuan Road, Zhengdong New District, Zhengzhou City.

In the early morning of July 21, in response to the current operation of the Zhengzhou Commodity Exchange and whether it would normally conduct transactions in the future, a staff member of the News and Information Department of the Zhengzhou Commodity Exchange stated in an interview that there is currently no notice of suspension of trading on the exchange, and the specific latest situation Zheng The official website of the firm will post a notice in a timely manner. ,

According to the Central Meteorological Observatory at 06:00 yesterday (21st), it continued to issue an orange rainstorm warning: It is expected that from 08:00 on July 21st to 08:00 on July 22nd, there will be extremely heavy rainstorms (250-280 mm) in northern Henan and southern Hebei. Some of the above areas Accompanied by short-term heavy rainfall (the maximum hourly rainfall is 30-50 mm, the local area can exceed 70 mm), the local area has strong convective weather such as thunderstorms and gales, which means that floods and heavy rains bring power outages and water cuts. , The situation of production and transportation will continue to be blocked, and hundreds of local chemical companies will still face severe tests.

In addition, Zhengzhou is the largest LTL cargo transfer station in China. The transportation items include coal and chemicals. The local waterlogging disasters superimposed on roads, railways, shipping and other transportation are basically suspended, and the procurement of raw materials and the delivery of finished products are also basically suspended. , Under greater inventory pressure, some companies expressed that they would cut production as appropriate.

According to the latest news, there were still heavy precipitation in Henan and Hebei and other places on July 22, and Hebei Province issued three red warnings in a row!

At 5 o'clock on July 22, the Hebei Meteorological Observatory continued to issue a red warning signal for heavy rain. In addition, Hebei Provincial Department of Water Resources and Hebei Provincial Meteorological Bureau jointly issued a red warning for mountain torrent disasters; Hebei Provincial Department of Natural Resources and Hebei Provincial Meteorological Bureau jointly issued a red warning for geological disasters.

This also means that the power and water outages caused by floods and heavy rains, production and transportation blocked, and factory shipment plans continue to be delayed. Hundreds of local chemical companies are facing severe production and sales dilemmas.

The price of international bulk commodities has risen by more than 100%!
Our country made another move, putting in 170,000 tons of national reserves!
One link after another, in order to stimulate the economy, the global central bank kept printing money, and inflation followed, and the prices of international commodities such as chips, steel, raw coal, and iron ore continued to skyrocket. In order to reduce the risk of imported inflation and stabilize the prices of bulk commodities, my country has made another move!

On July 21, the National Development and Reform Commission held a meeting. The meeting indicated that to continue to strengthen the regulation of commodity prices, the possibility of future trend increases is low!

From July 15 to 16, the National Price Work Conference was held to make arrangements for the price work during the "14th Five-Year Plan" period and the second half of the year.

The meeting analyzed the current price situation and required local price authorities to focus on strengthening price monitoring and early warning and anticipation management, strengthen the price control of bulk commodities, and ensure the supply and price stability of important livelihood commodities to ensure that the overall price level control target for this year is achieved.

Analysts believe that the price level in the next stage is expected to remain stable, and the possibility of a trend increase in bulk commodity prices is low. There are conditions and foundations for achieving the overall price level control target this year.

This announcement triggered widespread discussions among industry professionals, are the prices of raw materials really going to fall? It is generally believed that the regulation of prices should start from the supply side. Market prices are fundamentally determined by supply and demand, and some raw materials will only rise and not fall due to the shortage of supply.

Therefore, from the perspective of specific measures, the country once again solves the problem from the supply side! The National Development and Reform Commission and the National Bureau of Grain and Material Reserves announced on the 21st that they will put a total of 170,000 tons of copper, aluminum and zinc in the second batch of national reserves, including 30,000 tons of copper, 90,000 tons of aluminum, and 50,000 tons of zinc.

As early as July 5, the State Bureau of Grain and Material Reserves put 20,000 tons of national reserves of copper, 50,000 tons of aluminum, and 30,000 tons of zinc into the market through open online bidding. A total of more than 200 non-ferrous metal processing and manufacturing companies participated in the bidding, and all the copper, aluminum, and zinc reserves placed were sold, and the transaction prices were 3% to 9% lower than the domestic futures prices on the day.
According to this trend, as long as commodity prices do not cool down, my country will continue to sell!

At the same time, Xu Gaopeng, Director of the Material Reserve Department of the State Food and Material Reserve Bureau, also gave everyone a "packed ticket", saying that my country has sufficient reserves of materials and is confident and capable of cooling the booming commodity market.

Since 2021, international bulk commodity prices have been surging. As of the end of June, this year's CRB index has increased by more than 25%. If compared with the lowest point in the first half of last year, the increase has exceeded 100%. What needs to be added is that the CRB index covers bulk commodities such as energy, metals, and farm products, and is an important reference indicator that reflects the prices of international bulk commodities.

At present, the market prices of bulk commodities are still at a high level, and many companies still have an urgent need to reduce the cost of raw materials. From the data point of view, the scale of the second batch of reserve aluminum has nearly doubled compared with the first batch, which is expected to have a certain impact on market price expectations.