Staggered peak production is limited to 6 months, and all 2+26 cities have fallen! PA material continues to take off and rises by another 1000!

Staggered peak shutdown is limited to 6 months of production, involving 2+26 cities!

Polypropylene companies are forced to stop!

The Golden September peak season has come, and price increases from major chemical companies such as DuPont and BASF have also been issued non-stop. And this year's environmental protection production restriction policy is also faster than in previous years!

On September 2, the Ministry of Industry and Information Technology and the Ministry of Ecology and Environment issued the "Notice on the Staggered Production Limitation of the Iron and Steel Industry in the Heating Season of 2021-2022 in Beijing-Tianjin-Hebei and Surrounding Areas." According to the "Notice of Production Restriction", the production restriction plan for key areas and surrounding areas this year has been basically determined.

In addition, this document is the first time a document issued at the level of the national ministries and commissions specifically aimed at the steel industry's fall and winter production restrictions! The scope of implementation includes Beijing, Tianjin, Hebei, Shandong and other 2+26 cities!

The "Notice of Production Limitation" is implemented in 2 phases for off-peak production.

The first stage is from November 15th to December 31st. The goal is to complete the task of output reduction;

The second phase is from January 1 to March 15, 2022 of the following year. The goal is to ensure that the emission of air pollutants meets the standard, and the peak shift ratio is not less than 30%.

Against the backdrop of the country’s 14th Five-Year Plan of “Carbon Peak-Carbon Neutrality”, the sudden attack on the dual energy consumption control policy has made the entire energy and chemical industry uneasy. In addition to the above-mentioned production restriction policies that specifically target the steel industry, many cities have successively issued plans and measures such as environmental supervision, carbon reduction and production restriction.

On September 1, the Office of the Leading Group for Air Pollution Prevention and Control in Handan City issued a plan for limiting production in key industries in September and October. The plan further tightens production restrictions in key industries. Among them, the steel industry is required to tighten the production limit by 4.4 percentage points on the basis of July and August, and shut down 20 blast furnaces under 1,000 cubic meters and 20 converters under 100 tons.

On September 1, the Sichuan Provincial Department of Ecology and Environment issued a document to implement the "Notice on Accelerating the Resolution of Current Prominent Issues of Volatile Organic Compounds" issued by the Ministry of Ecology and Environment, clarifying the requirements for enterprise self-inspection, environmental protection spot checks, investigation and remediation, technical guidance and project support.

On the basis of enterprise self-examination, localities conduct spot checks as required, and the proportion of spot-checked enterprises is not less than 30%, and the key management enterprises involving VOCs pollution discharge permits have achieved full coverage.

On August 26, the second round of the fourth batch of central ecological and environmental protection inspectors was fully launched. The five provinces of Jilin, Shandong, Hubei, Guangdong and Sichuan and the two central enterprises of China Nonferrous Mining Group Co., Ltd. and China National Gold Group Co., Ltd. have been inspected and stationed for about one month.

Coal-based enterprises have always been representatives of "high energy consumption". Under the "dual control" policy and environmental supervision, many coal-based polypropylene production enterprises have been affected.

According to statistics, the total production capacity of coal-based PP is 6.92 million tons, which can account for around 22% of the total polypropylene production capacity. It is understood that the dual control of energy consumption currently has a relatively obvious impact on coal-based companies, while Sinopec and PetroChina have not yet had a significant impact.

Among them, the company currently has a 350,000-ton/year shutdown plant of Zhongtian Hechuang and Datang Duolun (600,000-ton/year polyolefin plant). Among them, Shenhua Baotou plans to overhaul for about 40 days on September 15; Yan'an Energy Chemical The 300,000-ton PP plant was overhauled for about 40-50 days on September 1. After many consultations, the remaining coal-based enterprises are still within the normal production range. Whether the plant will reduce the load or shut down in the future, most of them have not yet been clearly notified.

PA66 skyrocketed by 1,000 yuan! PA6 rushes across the board!

PA raw materials are going crazy!

Since August, the price has been rising steadily. After entering the "Golden Nine", people in the plastics industry have been stunned, and they have bluntly risen to "doubt about life"!

▶ PA6 continues to rise, and many factories continue to increase the ex-factory price by 100-200 CNY/ton

On September 6, China Pingmei Shenma Group Nylon Technology Co., Ltd. has an annual production capacity of 70,000 tons of PA6, and the price of PA6 conventional spinning chips increased by 200 CNY/ton.

On September 6, Jiangsu Weiming Petrochemical Co., Ltd. has an annual production capacity of 100,000 tons of PA6, and the quotation of B240A bright slices was raised by RMB 100/ton to RMB 15,200/ton.

On September 6, Zhejiang Huajian Nylon Co., Ltd. had an annual production capacity of 70,000 tons of PA6, and the quotation of PA6 conventional spinning chips/HJ2800 was raised by 200 CNY/ton.

On September 6, Luxi Chemical Group Co., Ltd. raised the price of PA6 slices by RMB 50-100/ton. Since the beginning of this year, Luxi Chemical PA6 has risen 3900 CNY/ton.

On September 6, the price of PA6 chips from Yueyang Baling Petrochemical Chemical Fiber Co., Ltd. increased by RMB 100/ton.

The price of caprolactam continues to rise, and under the support of the cost side, the price of slices shows an upward trend in the short term. In addition, the overall start-up of the factory is not high, and the slice inventory is at a low level. It is expected that the short-term PA6 market price should be high and upward.

▶ Some grades of PA66 soared by 500-1000 CNY/ton

In the market, the quotations of polymerization factories and holders have increased sharply. Pingdingshan Shenma/FYR27D is raised by 1,000 CNY/ton, and INVISTA/U4800 is raised by 500 CNY/ton.

The supply of raw materials continues to be tight, the source of imported goods is limited, and the polymerization plant maintains low-load operation. With strong support on the cost and supply side, the PA66 market is expected to operate stably in the short term.