Another wave of price increases is coming! Many chemical companies raise prices collectively!

News from August 9th: Since 2021, under the new situation of the epidemic, the demand for the application of titanium dioxide in the field of sterilization has increased greatly. In addition, the country has vigorously promoted the progress of green mines and environmental protection projects, and many titanium mines have undergone maintenance. It is a current situation that caused the shortage of titanium dioxide resources and the price increase. Since the price of titanium dioxide rose to 21,500 CNY/ton in the first half of the year, it has remained high.

TITANIUM Technology Raises the Price of Titanium Dioxide by RMB 1,500/Ton
On August 6, 2021, Panzhihua Titanium Technology Co., Ltd. issued a notice on the price increase of titanium dioxide. Due to the recent continuous increase in raw material prices, the cost has increased significantly. Combining the actual situation of the company, from now on, the domestic trade of titanium dioxide rutile titanium dioxide The price is raised by 1500 CNY/ton, and the foreign trade price is raised by 200 CNY/ton; the domestic trade price of Tihai Anatase Titanium Dioxide THA2000 and Dingxing Anatase Titanium Dioxide PDA1000 will be raised by 1500 CNY/ton, and the foreign trade price will be raised by US$200/ton.

Chaocai environmental protection new material raises the price of titanium dioxide by 800 CNY/ton
On August 6, 2021, Chaocai Environmental Protection New Materials Co., Ltd. issued a notice on the price adjustment of titanium dioxide, stating that due to the increase in material prices, the company’s research decided that from now on, the domestic sales price of anatase titanium dioxide will be increased by 800 yuan/ Ton, the base price of foreign sales is raised by US$120/ton.

Hunan Chuangda Yutu Chemical raises the price of titanium dioxide by 800 CNY/ton
On August 5, 2021, Hunan Chuangda Yutu Chemical Co., Ltd. issued a notice of titanium dioxide price adjustment letter, based on the current market conditions and the company's production cost factors. After the company's research and decision, from now on, the sales price of the company's "Yutu" brand titanium dioxide will be increased by 800 CNY/ton on the original basis.

Xilong Chemical raises the price of titanium dioxide by 800 CNY/ton
On August 4, 2021, Guangxi Xilong Chemical Co., Ltd. issued a notice of titanium dioxide price adjustment, stating that based on the substantial increase in raw material prices and the current market situation, the company’s price committee decided that from August 5, 2021, the company’s Model titanium dioxide products are increased by 800 CNY/ton on the basis of the original execution price.

In addition to the titanium dioxide industry, which has stabilized and rebounded, the prices of many chemical raw materials such as PBT and TPU are still increasing. Domestic chemical companies such as Changchun Chemical and Kanghui New Materials have sent letters to announce the increase, with a maximum increase of 3,000 CNY/ton.

● Changchun Chemical Zhangzhou Branch issued a letter stating that the price of all LONGLITE®PBT products will be increased by 3000 CNY/ton (after tax) from August 16, 2021.

●Changchun Chemical Jiangsu Company issued a letter stating that since August 3, the price of all LONGLITE®PBT products will be increased:

●For non-flame retardant specifications, an increase of RMB 2,000 per ton (after tax);

●The flame retardant specifications will increase by RMB 2500 per ton (after tax).

●Detron Thermoplastic Polyurethane (Dongguan) issued a letter stating that it decided to increase the price of TPU products by RMB 1500-2500/ton from August 10th.

● Jinhui Zhaolong High-tech has issued a letter stating that since August 1st, the price of PBAT products will be increased by RMB 2,000/ton.

●Jiangsu Zishi Chemical Technology Co., Ltd. issued a letter stating that from now on, some products of acrylic emulsion series will be increased by 200-300 CNY/ton from the original price.

While domestic chemical prices are soaring, overseas chemical markets have not stopped their price increases. Since August, leading international chemical companies such as Shin-Etsu Chemical and Trinseo have continued to send letters announcing that the prices of PVC, MMA, Epoxy Resin, unsaturated resin, polystyrene, ABS and other products have risen by a maximum of 2,293 CNY/ton. In addition, Shin-Etsu Chemical, Trinseo and other companies have adjusted their increases several times this year. According to industry insiders, these overseas leading chemical companies still have their expectations of increase in the future.

● Shin-Etsu Chemical announced that due to the extremely strong demand for PVC in the United States and the shortage of supply, it has decided to increase the price of PVC for the seventh time. Prior to this, Shin-Etsu Chemical has raised PVC prices six times this year.

● Trinseo announced that it will increase the prices of all grades of polystyrene (PS), polycarbonate (PC), ABS and SAN, by up to 130 euros/ton (approximately RMB 994/ton).

●On the same day, Trinseo also announced that the price of MMA monomer will increase by 300 Euros/ton (approximately 2293 CNY/ton) from August 1.

●Nippon Steel Chemical Materials Co., Ltd. announced that it will increase the price of various epoxy resin products such as coatings, electrical and electronic equipment insulation materials, adhesives, etc., by up to 65 yen/kg from August 20.

● Denko announced that it has decided to increase the prices of epoxy resins, unsaturated polyester resins and other products from August 21, up to a maximum of 49 yen/kg.

●Sekisui Chemical announced that as the prices of PVC and PE resins continue to rise, it has decided to increase the prices of related products such as PVC/PE pipes from September 21 by up to more than 10%.

Production is shut down, 70,000 factories have closed down one after another, and survival is getting harder and harder!

According to the latest news from the People’s Committee of Hanoi, Vietnam on August 6, starting at 0:00 local time on August 8, the social isolation status of the city of Hanoi will continue to be extended to August 22.

According to a report by the Japan Broadcasting Association (NHK) on August 7, the new crown epidemic in Southeast Asia is becoming more serious. A Japanese Chamber of Commerce in Vietnam conducted a questionnaire survey of local Japanese companies and learned that more than 60% of companies consider arranging local employees and His family members returned to Japan.

Continue to blockade, 70,000 companies closed down

According to a report from "Vietnam Economics": Vietnam's fourth wave of COVID-19 mutant strains is coming so fiercely that a number of industrial parks and factories are temporarily closed, production and supply chains in various regions are interrupted due to the implementation of social distancing, and the growth rate of industrial production in Vietnam has slowed down.

The 19 southern provinces and municipalities directly under the Central Government implemented social distancing in accordance with the government's instructions. Industrial production fell sharply in July, of which the industrial production index of Ho Chi Minh City fell by 19.4%.

According to the Ministry of Investment and Planning of Vietnam, in the first half of this year, a total of 70,209 companies in Vietnam closed down, an increase of 24.9% over last year. This is equivalent to 400 companies closing down every day.

It is reported that major production bases of global brands from Toyota to Nike in Vietnam were forced to suspend work due to the blockade; electronics companies including Samsung and Foxconn are also facing production difficulties due to the blockade.

In addition, as the world's second largest exporter of textiles and garments, about one-third of Vietnam's textile and garment factories have been closed due to the epidemic. According to data from the Vietnam Textile and Apparel Association (Vitas), between 30% and 35% of garment factories in the country have closed down, among which Nike is one of the big brands. After the most challenging year in history in peacetime, the global supply chain is likely to face even greater destruction.

Epidemic caused production shutdown in Vietnam factory

Due to the impact of the epidemic, Vietnam's foundries are close to "zero output", and local factories have stopped production, causing a "supply cut" crisis.

Coupled with the high import demand of American importers and consumers for Asian products, especially Chinese products, the situation of port congestion, delivery delays, and space shortages becoming more and more serious has not improved. The current products of US retailers Inventory can only be maintained for about a month, setting a record for the lowest inventory in 30 years (since 1992).

"The epidemic has caused factories in South and Southeast Asia to stop production, increasing the risk of global supply chain disruption. American consumers may soon find that local shelves are empty." US media recently warned of the epidemic to American consumers. Dilemma and impact.

According to a report from Vietnam Express, taking Nike shoes as an example, under the impact of the fourth round of the epidemic, Nike's foundry factories in Vietnam may face a "zero output" crisis. There are about 200 contract manufacturers in Vietnam, and the two largest contract OEMs, Baocheng Group and Chang Shin, have all shut down.

The Baocheng Shoe Industry, which set up a factory in Ho Chi Minh City alone, employs about 62,000 Vietnamese workers. Nike shoes such as "coconut shoes" and sneakers, which are popular among young people, are produced in this factory. In addition, the report also wrote that in the financial report released in June this year, in the past fiscal year, Nike shoes produced in Vietnam accounted for 82% of the US consumer market. The suspension of the Vietnamese factory is alleged to be the main reason for the supply of Nike shoes in the United States.