Soaring 470%! These chemical raw materials are skyrocketing!

Recently, silicone products have made the top chemical search rankings. Under the intensified supply tension, organic silicon products have risen to 31,500-31600 CNY/ton, an increase of 90.06% year-on-year, and the industry's gross profit is about 13,000 CNY/ton, which is a proper "one-size-fits-all profit". Some large factories have recently arranged a parking maintenance plan, and the situation of "prices but no goods" has spread again. Many companies have increased the price of silicone products by about 5-10%, and said that they only accept cash orders and a single negotiation.

At the same time, the organic silicon sector went viral across the board, rising 6.44% overall. Chenhua shares and Dongyue Silicon Materials rose by 20% daily limit, and many stocks rose more than 10%, which also reflects the current booming trend of the organic silicon industry. According to industry insiders, the surge in organic silicon is not an exception. Recently, chemicals related to the industrial chain of photovoltaics and new energy vehicles have been rising wildly. The secret lies in the acceleration of the domestic "carbon neutral" policy.

Reducing carbon emissions and realizing clean substitution, the photovoltaic industry has a major opportunity

The recent Central Economic Work Conference clearly identified “doing a good job in carbon peaking and carbon neutrality” as one of the eight key tasks in 2021. To reduce carbon emissions, we must first achieve clean replacement at the power generation end. The photovoltaic industry has undoubtedly a huge room for development, and it can be said to usher in a major development opportunity. Industrial silicon, trichlorosilane, soda ash, vinyl acetate, EVA ( Photovoltaic grade) and other related chemicals have also been driven, and the prices are as if they are on a rocket, soaring into the sky.

Silicone

On August 18, a silicone monomer factory opened a fancy auction, and finally the 10.9 tons of DMC was sold at 34,700 CNY/ton. The current price is only one step away from the highest price in the history of silicone in 2018, and the record break is just around the corner.

Photovoltaic EVA resin

The price of EVA has increased significantly in the first half of this year. This week, domestic manufacturers increased their prices by 500-600 CNY/ton across the board, and the quotations of Levima's new material EVA cable materials have risen for three consecutive weeks. At present, the price of domestic foam materials is about 19000-19500 CNY/ton, the price of cable materials is about 21000-21500 CNY/ton, and the price of photovoltaic materials is about 21000 CNY/ton or more.

Trichlorosilane

Since the beginning of this year, the price of trichlorosilane has risen sharply, and the product price has risen sharply from less than 6000 CNY/ton to the current market price of about 15000-17000 CNY/ton. At present, the manufacturer's pre-tax gross profit can reach about 10,000 CNY/ton.

Low-carbon emission reduction "absolute main force" strikes, new energy vehicles are booming

The source end has done a good job of upgrading and improvement, and the emission end must keep up with the pace. To achieve low-carbon emission reduction and reduce dependence on oil, the carbon emission "big" auto industry must take action. Of course, electric vehicles have become the "absolute main force" for the consumption of non-fossil energy. The hot development of new energy vehicles in recent years has also proved this. This is undoubtedly for the phosphate rock, phosphoric acid, lithium Carbonate, and phosphoric acid related to the lithium battery industry chain. Chemicals such as Iron and lithium hexafluorophosphate brought the pull.

Dimethyl Carbonate

The listed price of battery-grade dimethyl carbonate from mainstream manufacturers is RMB 14,500/ton, and the price of products has increased by RMB 4500/ton in the past month. The prices of other lithium battery solvents such as battery-grade EMC and EC have risen sharply.

Lithium hexafluorophosphate

The price of lithium hexafluorophosphate has risen from 90,000 CNY/ton last year to 400,000 CNY/ton now. The overall increase has more than tripled, and the price has risen 500% over the same period last year. Even if the price rises so sharply, there are still many companies that can't find a source of goods with money, and it's hard to find a single product.

Lithium Carbonate

The average price of industrial-grade lithium carbonate in East China is 100,200 CNY/ton, which is an increase of 4.59% compared with the beginning of the week. The average price of battery-grade lithium carbonate in East China is 105,000 CNY/ton, a 6.06% increase compared with the beginning of the week. At present, some lithium carbonate companies are relatively in short supply. They suspend external quotations and focus on price negotiations at the end of the month. Therefore, there may still be room for price increases.

Lithium Hydroxide

The price of battery-grade lithium hydroxide was 110,500 CNY/ton, an increase of 4,500 CNY/ton from the previous month; the price of industrial-grade lithium hydroxide was 102,000 CNY/ton, an increase of 4,000 CNY/ton from the previous month. Spot resources of leading companies are hard to find, and market inventories are at a low level. It is expected that the price of lithium hydroxide will continue to rise.

Lithium Iron Phosphate

At present, the mainstream price range of lithium iron phosphate power is 51-55 thousand CNY/ton, and the price range of energy storage type lithium iron phosphate is 46-49,500 CNY/ton, an increase of 1000 CNY/ton from the beginning of the month.

Phosphorus Chemical Industry Chain

The domestic price of phosphate rock has risen to 550 CNY/ton, up about 45% year-on-year, and the price of phosphoric acid in the industry chain has risen from 6,040 CNY/ton at the beginning of the month to 7,640 CNY/ton, an increase of 23.51%. The average price of monoammonium phosphate and diammonium phosphate was 3252 CNY/ton, up 76.84% and 47.54% respectively from the beginning of the year.

PVDF resin soared 4.7 times

Since the fourth quarter of last year, the gap between the supply and demand of lithium PVDF has continued to widen, and the market has been severely in short supply. The price has risen all the way. The quoted price of imported battery-grade PVDF has exceeded 400,000 CNY/ton, a 470% increase from 70,000/ton at the beginning of last year. The price of the goods is approaching 500,000 CNY/ton, and some manufacturers have stopped quoting. The supply of PVDF raw material R142b is very tight and there is a serious mismatch between supply and demand. The quotation of Zhejiang R142b has risen to 10-105,000 CNY/ton (this week’s increase is 11%, the monthly increase is 40%, the increase is 425% from the beginning of the year, and the year-on-year increase is 556%).

With the inclusion of carbon neutrality in the national strategy in 2021, the issue of non-fossil energy substitution has been pushed to the forefront. Under the cloak of "clean energy", an energy innovation revolution in which silicon energy replaces carbon energy has arrived. The "3060 Target" has brought about 40 years of investment themes and at least 70 trillion yuan in investment, which will enable rapid development in photovoltaics, new energy and other fields, and will also bring greater pull to the chemical products of the related industrial chain.

Due to the longer construction period of material production capacity in the basic chemical industry, it generally takes 2-3 years, and it needs to face greater EIA pressure, so it is difficult to achieve a large-scale increase in the supply side in the short term, and supply and demand are wrong. Before the allocation is completely resolved, the dividend period of related chemicals will continue, and market quotations will continue to rise.