BASF sends out a price increase letter again! MDI, glycerol, epoxy and many other raw materials have soared!

On September 3, BASF issued a price increase letter again, stating that it would increase the price of its polyurethane business from October 1st by an increase of US$0.11 per pound (approximately RMB 1,566 per ton), which has been recently issued by BASF. The eighth price increase notice!

As in the past, the reason for the price increase is that the raw material has increased by 3-5 times or even higher, and the production cost is overwhelmed. It is decided to increase the price in order to absorb the cost pressure. According to the observations of www.youliu.com, chemical companies that have recently increased prices have mentioned the tremendous pressure brought by the rise of upstream raw materials without exception. So how much of these chemical raw materials have risen, and how much impact has it brought?

Sulfuric Acid hits a 10-year high

Dyestuff products increased by 2,000 CNY/ton

The overall domestic sulphuric acid market is rising rapidly. The ex-factory price of 98% acid in key areas has exceeded 600 CNY/ton, and the price in East China is 785-800 CNY/ton, which is 700% higher than the low value of 100 CNY/ton in the middle of last year. The price has hit a 10-year high, and the price of 98% acid in some parts of the south has exceeded 1,000 CNY/ton.

Affected by the increase in the price of sulfuric acid, its downstream dye industry generally rose by 1,000-2,000 CNY/ton, and various products such as titanium dioxide, ammonium sulfate, oxalic acid, and copper sulfate were also affected by price increases.

Glycerin rose 92%

epichlorohydrin soared by 5,000 CNY/ton

Glycerin products have risen wildly since the second half of last year. At present, the price of industrial grade 99.7% glycerin is 11,000 CNY/ton, and the price of 95 glycerin is 9600 CNY/ton, which is a 92% increase from about 5,000 CNY/ton at the beginning of the year and 120% from the low value of last year.

The strong trend of glycerin resulted in strong support for the cost of epichlorohydrin by the downstream glycerol method, showing an upward trend. The current price of epichlorohydrin is 14900-15000 CNY/ton, an increase of about 5000 CNY/ton from the beginning of the year. Some devices have been shut down for maintenance and the market is in short supply. It is expected that there will be an increase in the short term.

Silicone hits a record high

Downstream sealant, etc. increase by 30%

Silicone has been rising in an all-round way, the supply is tight, the orders are tightly arranged, and the manufacturers are mainly in arrears. Some monomer manufacturers have closed their orders. The current price of silicone is about 37,500 CNY/ton, and some companies are quoting more than 38,000 CNY/ton. The price is higher than last year. The low price of 15,000 CNY/ton has risen by 150%, a record high.

The price increase of organic silicon has also pushed up prices in downstream construction, electronics, power energy, new energy, photovoltaic and other industries. Among them, downstream sealant companies have risen 3-4 times within half a month, with a cumulative increase of more than 30%. The small factory has closed and stopped taking orders.

Increased MDI products by RMB 2,000/ton

Downstream spandex hits a record high

At present, the price of MDI Wanhua is 20,300-20,500 CNY/ton, and the price of Shanghai is 19,800-20000 CNY/ton. BASF announced that the price of Lupranate MDI products will increase by 0.12 USD/lb (approximately RMB 1,717/ton) from October 1; the listing price of aggregate MDI in BASF’s distribution market will be 23,000 CNY/ton in September 2021, up by 2,000 CNY/ton from August. Ton. The listing price of Shanghai Huntsman Polymeric MDI to distributors was 22,000 CNY/ton in September, which was an increase of 1,000 CNY/ton from the previous month. Dow Chemical raised the price of all grades of MDI products under its three brands of ISONATE, ISOBIND and PAPI to 7 cents/lb (approximately 998 CNY/ton).

Spandex and polyurethane products in the downstream furniture and home furnishing industries are also rising. Recently, the price of spandex 40D has rushed to 71,500 CNY/ton, setting a record high since August 2010, with an increase of 178%.

BPA is approaching new highs

Epoxy sprints again

Bisphenol A is quoted at RMB 28,100-28,200/ton, which is gradually approaching the historical high of RMB 30,000/ton.

In addition, bisphenol A manufacturers had more maintenance plans in September and October, and the shortage of supply from major manufacturers also supported the selling mentality, driving the high price of Epoxy Resin. The current price of solid epoxy resin is 31,000 CNY/ton, and the price of liquid epoxy resin is 36,000 CNY/ton.

EVA rose by 2200 CNY/ton in a single day

The photovoltaic industry chain has risen accordingly

On September 2, the domestic Sinochem Quanzhou EVA UL00628, after six rounds of auctions, was finally sold at a price of 23,700 CNY/ton, an increase of 2,200 CNY/ton in a single day, an increase of 11%, a record high in one fell swoop. Yanshan China Coal and Yulin Energy and Chemical will raise 1550 CNY/ton and offer 20950 CNY/ton; Yanshan Petrochemical will raise 800 CNY/ton and offer 20,300 CNY/ton; BASF raises 400 CNY/ton and offer 20,400 CNY/ton.

The lack of imported materials and the delay in customs clearance have hindered the overall circulation of the EVA market and the supply of goods is very tight. Downstream photovoltaic films, backsheets and other materials have great demand for EVA products, so prices are also rising.

Yellow phosphorus manufacturers suspend quotations

Phosphoric acid industry chain continues to rise

At the beginning of September, the market for yellow phosphorus is moving upwards. The mainstream quotation of yellow phosphorus in Yunnan is currently around 28,000-30,000 CNY/ton; the mainstream quotation in Sichuan is around 29,000-30,000 CNY/ton; the mainstream quotation in Guizhou is around 28,500 CNY/ton. Yellow phosphorous manufacturers mainly place pre-orders, and the spot is tight, and some manufacturers temporarily stop quoting.

The downstream phosphoric acid market of yellow phosphorus has generally been revised upwards, and the center of gravity has moved up rapidly, rising by about 600 CNY/ton in a week. Under the support of cost, the phosphoric acid market is expected to continue to rise in the short term.

Also affected are lithium hexafluorophosphate and lithium iron phosphate products. The market price of lithium iron phosphate rose this week, and the focus of discussion was high. The average price of domestic power-type premium lithium iron phosphate was 55,000 CNY/ton; lithium hexafluorophosphate electrolyte rose by 5,000 CNY/ton, and the average price was 44,500 CNY/ton. Since the second half of the year Increased by 50%, and increased by 543% in the past year.

It is not difficult to see that products with rapid price increase are driven by upstream raw materials on the one hand. For example, the rising trend of energy products such as natural gas, coal, and oil has put greater pressure on the cost side of enterprises; such as new energy, photovoltaics The popularity of other industries has caused the demand for chemical products to increase sharply, and the supply of goods is in short supply. In addition, under the constantly changing market conditions and economic situation, some manufacturers or traders took advantage of the situation and hoarded in order to make huge profits, which also made the already severe chemical market worse.

So can the upcoming fourth quarter usher in the "turning point" of chemical prices? According to industry insiders, many chemical companies sent letters to adjust the price increase not on a whim, but a decision made as a last resort due to a concentrated outbreak of pressure over a long period of time. The upstream energy end and basic chemical products continue to rise, and it will take a certain amount of time and process to be transmitted gradually, so the possibility of falling is very small. In addition, in the post-epidemic era, most of the world's major economies have adopted relatively loose monetary policies. Under the global "draft", economic recovery has accelerated, and PPIs have continued to rise. Then, in the short term, chemical products will still fluctuate at high levels.