Start on September 1st! Chemical giants such as BASF, Dow and Eastman have collectively raised prices!

Recently, the Dow Chemical Company issued a force majeure notice for propylene oxide, stating that due to the upstream raw material supplier's accident affecting the supply of key propylene oxide raw materials, Dow has no guarantee to provide customers with the amount of propylene oxide in the signed order , Dow is currently working hard to restore the supply of propylene oxide. In addition, Dow Canada's three ethylene glycol plants with a total capacity of 1.23 million tons per year have been shut down and are expected to be overhauled for 50 days.

In addition to Dow Chemical, several chemical giants such as BASF, Cangzhou Dahua, Covestro, and Wanhua Chemical have recently announced that due to accidents, shutdowns and maintenance, etc., they cannot supply raw materials normally, and the duration is generally longer. This is undoubtedly worse for the chemical market, which has already tightened prices. Supply-side tightening has not only reduced market inventories, but also boosted anxiety and triggered another wave of price increases.

Many large factories such as Wanhua, Cangzhou Dahua and Covestro have encountered force majeure

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On August 18, Polyplastics Co., Ltd. stated that several new confirmed cases of COVID-19 were found on the polymer production line of its Malay factory. As a result, due to lack of personnel and other reasons, part of the product bagging equipment has ceased operation since August 16.

On August 18, India’s Reliance Industries stated that it had closed its Nagussen plant in Maharashtra, and stated that previous customer orders will continue to be supplied through inventory or transferred from regional plants. In addition, Reliance also announced in early August that it would close its 400,000-ton/year PP plant in Jamnagar, India, for about a month or more.

On August 13th, Cangzhou Dahua and Shanghai Covestro’s TDI installations were shut down due to failures, and the maintenance time is expected to be longer. At present, both of them are in a closed state; while Yantai Juli’s 3+50,000 ton TDI installations are shut down for maintenance, and the restart time is undetermined. . In addition, Wanhua announced the September storage and maintenance plan for Yantai TDI equipment, and Gansu Yinguang will shut down for maintenance on August 26 for a period of one month.

Wanhua Chemical announced that in accordance with the annual maintenance plan, the subsidiary Hungarian Baoside Chemical Company’s MDI device (300,000 tons/year) will start to shut down for maintenance on August 17, and the maintenance is expected to be about 50 days; the TDI device (250,000 Tons/year) will start to stop for maintenance on August 26, and the maintenance is expected to be about 30 days.

On August 7, a fire broke out at BASF's factory in southern Ludwigshafen. The fire caused products such as sodium methoxide to declare force majeure. The announcement is expected to affect several months. Sodium methoxide is a raw material for VA. Both BASF and DSM were affected by the fire. It is reported that DSM has recently stopped selling VA globally.

The cumene plant of Xinchang Chemical Company in Taiwan Forest Park ceased production on August 15. The phenol ketone plant was reduced due to force majeure. It is expected that the phenol contract supply in August and September will be adjusted according to the production situation, involving a phenol production capacity of 360,000 tons. /Year, acetone production capacity is 220,000 tons/year.

Haldia Petrochemical Company (HPL) had a fire at a 700,000-ton/year naphtha processing plant in West Bengal, East India, and its equipment was under maintenance for a month.

BASF's LDPE force majeure in the Netherlands has been upgraded and recently announced that its entire PE production in Europe has encountered force majeure.

Covestro's 320,000-ton/year MDI device in Texas, USA, and the 420,000-ton/year MDI device in Brunsbiter, Germany, are both at the stage of force majeure.

The supply of Dow's 340,000-ton/year MDI device in Texas, USA was interrupted due to unexpected mechanical failures from the raw material supplier. MDI force majeure has continued since February.

Italy Rantice announced that due to heavy rains hitting the Novara plant in Italy, the plant had a power outage. The plant’s PA66 and other products declared force majeure, which is expected to continue until mid-September.

The CEO of LANXESS stated that the logistics delays of LANXESS will not be improved this year. At present, many products of the company are still in a state of delayed delivery, and the new shipping capacity that may ease the situation will not be available before the summer of 2022. .

Vietnam’s Nghi Son Refinery (NSRP) is expected to close its 370,000-ton/year polypropylene (PP) plant on August 15 for a planned maintenance period of 2-3 weeks. It is expected to resume operations at the end of August or early September. .

BASF, Cabot, Dow and many other chemical companies started to raise prices on September 1st

Due to force majeure or shutdown of large factories, the supply side of the industry will decrease, which will reduce the overall market inventory of the chemical industry. This situation occurred on the eve of the peak season of "Golden Nine and Silver Ten", which added fire to the price increase in the chemical market. Cabot, Dow, BASF, DIC, Eastman, Tosoh and other chemical companies have announced that they will increase product prices in September, which perfectly responds to the force majeure of major manufacturers.

Sekisui Chemical: Starting from September 21, PVC/PE pipes and other related products have risen by more than 10%.

Tosoh Co., Ltd.: Starting from September 16, neoprene has increased by more than 40 yen/kg (approximately 2371 CNY/ton).

Cabot: Starting from September 15th, the prices of CAB-O-SIL® hydrophilic fumed white carbon black and CAB-O-SPERSE® aqueous dispersion products will be increased globally, according to different grades, The increase is more than 10%.

Oulilong (formerly Evonik Degussa): Starting from September 15th, carbon black products produced in North America have risen by US$0.08/lb (about 1142 CNY/ton).

DIC Materials Co., Ltd.: Starting from September 1, unsaturated resins will rise by 35 yen/kg (about 2067 CNY/ton), and vinyl resin will rise by 40 yen/kg (about 2362 CNY/ton).

BASF: Starting from September 1, specific polyol series products in North and South America have risen by up to US$441/ton (approximately RMB2858/ton).

Leander Basel: Starting from September 1, the ethylene glycol series, propylene glycol series, glycol ether series and other products have risen by a maximum of US$0.12/lb (about 1724 CNY/ton).

Indorama: Since September 1, Diethylene Glycol has risen by US$0.02/lb (about 286 CNY/ton), and triethylene glycol has risen by US$0.05/lb (about 714 CNY/ton).

Monument Chemical: Since September 1, the isopropyl acetate series products have risen by US$0.10/lb (approximately RMB 1,428/ton).

Dow: Since September 1, the film-forming additives will rise by US$0.25/lb (approximately 3570 yuan/lb).

Ube Industries: Starting from September 1, PA66 will increase by 50 yen/kg (approximately 2960 CNY/ton).

Nippon Steel Chemical Materials Co., Ltd.: Starting from September 1, bisphenol A, the upstream monomer of PC (Polycarbonate) and Epoxy Resin, has risen by more than 25 yen/kg (about 1,480 CNY/ton).

Stepan: Starting from September 1, RUCOTE® powder resin rose by US$0.08/lb (about 1136 CNY/ton), and STEPANPOL® polyol rose by US$0.05/lb (about 710 CNY/ton).

Sumitomo Chemical Co., Ltd.: Since September 1, the LCP of special plastics has risen by US$0.8/kg (approximately 5186 CNY/ton) abroad.

Higashiyama Co., Ltd.: Since September 1, IPA products have risen by more than 18 yen/kg (about 1,060 CNY/ton).

Tosoh (TOSOH): From September 1st, industrial grade Glauber's salt products will rise by 10 yen/kg (approximately RMB 588/ton).

Eastman: Starting from September 1, 12 important chemical raw materials, including ethylene glycol series, propylene glycol series, acetic acid series, plasticizer series and some solvents/auxiliaries, have risen up to US$0.15/lb (about 2142 yuan/lb) ).

According to incomplete statistics from Youliu.com, nearly 20 companies have announced price increases starting in September, and the intensity is still relatively large, with a maximum increase of 5186 CNY/ton. Regarding the question of "whether it will affect the domestic chemical market" raised by domestic chemical industry people, industry insiders have said that price changes in any link of the entire chemical industry chain will have a knock-on effect. The superimposed peak season is coming, and the price increase letter from major manufacturers may kick off the peak season price increase. This year's "Golden Nine and Silver Ten" will come earlier, and the intensity is expected to be even greater.