Dow exploded, crude oil oscillated, and raw materials continued to rise! The highest skyrocketing 187%!

The Dow Chemical Company has a chemical spill

On July 21, local time, a chemical spill occurred at the Dow Chemical Company in Laporte, Texas. Due to the danger of air pollution and explosion, the local emergency department required residents within a radius of half a mile (about 1.6 kilometers). Evacuate immediately.

According to reports, at 7:27 am on the 21st, Dow Chemical Company reported to the local government that a chemical leak had occurred in the factory. At about 8:30 am, local emergency department officials issued an evacuation alert. It is understood that the cause of the incident was excessive pressure inside a storage tank in the factory, which caused the hydroxyethyl acrylate to leak from the storage tank valve. The storage tanker may explode if the temperature is too high.

Oil prices continue to fluctuate strongly after getting out of the "V"-shaped reversal

Last Friday, oil prices continued to fluctuate strongly after exiting the "V"-shaped reversal. The spread of the fourth round of the epidemic and the continuous increase in the number of wells in the United States. Among them, considering that the fourth wave of the global epidemic has just begun, the pace of economic recovery is certain to slow down, and the point in time when it rises again may move back. This also means that the possibility of a sustained plunge in oil prices is still unlikely. Only because OPEC+ has reached an agreement to increase production starting in August, the recovery of crude oil demand may mean that the tight supply problem in the third quarter is not as acute as before, which affects the room for oil prices to rise again.

On the whole, it is believed that because the fourth round of the epidemic has just spread, the number of newly diagnosed people in the world is still increasing, and oil prices may still fluctuate in the short-term. In the long run, the probability of a complete out-of-control of the epidemic is low, which means that the recovery of crude oil demand is only a post-tempo, and it is still possible to maintain the third quarter.

Follow up with peers! August rally scheduled!

Before August, the price increase information will go ahead. The range of rising products involves resin, polyurethane and other industrial chains!

Kuraray

Starting from August 1, Kuraray raised the prices of all grades of the company's SEPTON™, HYBRAR™ hydrogenated styrene elastomers and TU polymers globally by 0.33 US dollars per pound (approximately 2138 yuan per ton).

AOC

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

Covestro

The 320,000-ton/year MDI device is due to global supply restrictions, which affects its ability to import materials. As of July 14, it was announced that all MDI products in North America are subject to force majeure. The company said the new statement will replace its statement issued on February 14.

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.

TOSOH

On July 15, Japan’s major TDI supplier TOSOH (formerly NPU) announced that the company plans to terminate the sales of TDI and related products at the end of March 2022 due to the difficulty in supplying major raw materials.

Allnex

On July 14, Allnex Allnex Resins announced again that it would increase the price of 22 resin products including polyurethane resins, epoxy resins, polyols, polyesters, etc., starting from July 26, by up to 0.5 US dollars per pound ( About 7050 CNY/ton).

Mitsubishi Chemical

On July 13, Mitsubishi Chemical announced that it would start to increase the price of the company's VINYL ACETATE MONOMER from July 20, with an increase of 25 yen/kg (about 1462 CNY/ton) or more.

Polyurethane, epoxy and other industrial chains are booming!

Polyurethane Industry Chain

MDI: BASF raised the price of polymer MDI to 20,000 CNY/ton, an increase of 500 CNY/ton month-on-month, which boosted the polymer MDI market. At present, due to the influence of some major factories' maintenance plans, manufacturers and distributors are reluctant to sell. As demand recovers in the second half of the year, it is expected that MDI still has room to rise.

1,4-Butanediol: BDO spot supply is tight, downstream just needs to be purchased, and manufacturers are reluctant to sell. As the supply of goods decreases, BDO has greater room for growth. It is expected that in the short term, BDO will continue to rise mainly.

TDI: The market as a whole is dominated by smooth operation. The downstream purchases according to rigid demand, and manufacturers and distributors frequently pay high prices. The market outlook needs to pay attention to the news of factory maintenance, which is expected to increase mainly.

Epoxy Industry Chain

Bisphenol A: Nantong Xingchen and Sinopec Mitsui stop production, and market supply is tight. Bisphenol A is expected to continue to strengthen!

epichlorohydrin: large factories are overhauled and there is a shortage of supply. The upstream raw materials propylene and glycerin are operating weakly. It is expected that epichlorohydrin will continue to operate at a high level.

Epoxy Resin: Due to the rise of bisphenol A and epichlorohydrin, and the increase in maintenance of epoxy equipment. Leading companies have increased their resin-related products, and epoxy resin is expected to have a lot of room for growth in the second half of the year.