Oil prices hit a 7-year high! Chemical raw materials set off a 'price hike'!

International crude oil, which has recorded gains for 9 consecutive weeks and has set the longest consecutive rise since 2015, has continued to gain momentum in recent days. On the 25th, Brent crude oil broke through US$86.43/barrel, the highest level since October 2018; WTI crude oil climbed to US$85.03/barrel, continuing to hit a new high since October 2014. Since the beginning of September, both benchmarks have risen about 20%.

According to industry analysts, the continued rise in international crude oil is mainly due to the slow increase in the supply of OPEC and its allies, and the global shortage of coal and natural gas has led people to turn to oil power generation. At present, investors still generally expect that global oil inventories will continue to decline in the next few months, which will drive oil prices to continue to rise.

International crude oil prices "straight into the sky", chemical sector rises in a straight line

Affected by the news that international oil prices continued to rise sharply, on the 25th, the A-share oil and gas mining sector continued to rise. Bohui's daily limit, Intercontinental Oil and Gas soared by 7%, China Petroleum, PetroChina and other stocks rose, and the chemical sector also experienced higher prices. 

The MTBE market continues to rise this week, with prices generally rising 150-500 CNY/ton, and the current price has risen to the high price in September 2018. Shandong Chengtai Chemical's quotation has been increased by RMB 300/ton to 7,600 CNY/ton, Shi Dashenghua’s MTBE quotation has been increased by RMB 100/ton to 7,400 CNY/ton, and Dongming Qianhai’s quotation has been increased by RMB 300/ton to 7,650 CNY/ton.

Trichloromethane was quoted at RMB 6,200/ton, an increase of RMB 2,012.5/ton from the quotation at the beginning of the month, an increase of 48.06%.

Bromine was quoted at RMB 69,875/ton, an increase of RMB 21,625/ton, or 44.82%, from the quotation at the beginning of the month.

The price of R134a was 50666.67 CNY/ton, an increase of 13833.34 CNY/ton or 37.56% from the quotation at the beginning of the month.

Ammonium nitrate was quoted at RMB 4,700/ton, an increase of RMB 1,150/ton, or 32.39%, from the quotation at the beginning of the month.

DMF quoted at RMB 18,200/ton, an increase of RMB 4,400/ton from the quotation at the beginning of the month, an increase of 31.88%.

The price of white carbon black was 6875 CNY/ton, an increase of 1575 CNY/ton or 29.72% from the quotation at the beginning of the month.

Aniline was quoted at RMB 14166.67/ton, an increase of RMB 3000/ton from the quotation at the beginning of the month, an increase of 26.87%.

The price of methylene chloride was 6562.5 CNY/ton, an increaseof 1385 CNY/ton or 26.75% from the quotation at the beginning of the month.

Propane was quoted at 7018.25 CNY/ton, an increase of 1252.5 CNY/ton or 21.72% from the beginning of the month.

Toluene was quoted at RMB 6,930/ton, an increase of RMB 1,230/ton from the quotation at the beginning of the month, an increase of 21.58%.

Butadiene was quoted at 8435.71 CNY/ton, an increase of 1427.14 CNY/ton from the beginning of the month, an increase of 20.36%.

Maleic anhydride was quoted at RMB 16,166/ton, an increase of RMB 2566/ton from the quotation at the beginning of the month, an increase of 18.87%.

Ethylene oxide was quoted at RMB 9,700/ton, an increase of RMB 1,500/ton from the quotation at the beginning of the month, an increase of 18.29%.

Lithium iron phosphate was quoted at RMB 86,000/ton, an increase of RMB 12,000/ton or 16.22% from the quotation at the beginning of the month.

Phthalic anhydride was quoted at RMB 8462.5/ton, an increase of RMB 1150/ton from the quotation at the beginning of the month, an increase of 15.73%.

Propylene glycol was quoted at RMB 24,333.33/ton, an increase of RMB 3,233.33/ton, or 15.32%, from the quotation at the beginning of the month.

The price of dimethyl carbonate was 14166.67 CNY/ton, an increase of 1466.67 CNY/ton or 11.55 percent from the quotation at the beginning of the month.

TDI's quotation was 14,950 CNY/ton, an increase of 1,025 CNY/ton, or 7.36%, from the quotation at the beginning of the month.

The price of polysilicon is 153333.33 CNY/ton, an increase of 10,000 CNY/ton or 6.98% from the quotation at the beginning of the month.

Lithium carbonate was quoted at RMB 178,200/ton, an increase of RMB 10,400/ton, or 6.20%, from the quotation at the beginning of the month. Sichuan Rongli Technology's industrial-grade lithium carbonate and battery-grade lithium carbonate prices are both raised by 8,000 CNY/ton, and the quotations are 183,000 CNY/ton and 193,000 CNY/ton.

International crude oil rose, refined oil broke through the 9 yuan mark for the first time, and transportation was blocked.

Since 2021, international crude oil prices have soared by 60%. Driven by international crude oil and the bullish market sentiment, gasoline prices have also risen. Gasoline prices at gas stations in many countries have exceeded the 9 yuan per liter mark for the first time.

The price of gasoline in the UK surged 19% year-on-year in September, reaching 1.35 pounds per litre, or about 11.86 yuan, the highest level in eight years.

The retail price of regular gasoline in Japan has risen by about 20% this year, reaching 166 yen per liter, or about 9.3 yuan, a record high in 7 years.

The average gasoline price in South Korea has exceeded 1,700 won per liter after a lapse of 7 years, or about 9.3 yuan.

India's gasoline prices have risen by 23% since the beginning of this year, reaching 107 rupees per liter, or about 9 yuan.

The price of gasoline in the United States has soared and has reached its highest level in recent years.

Domestic oil prices are also continuing to push up. At 24:00 on October 22, gasoline will be raised by 300 yuan per ton, and diesel will be raised by 290 yuan. After this price adjustment, the price adjustment of refined oil products in 2021 will show a pattern of "14 up, three down, and three stranded". After the ups and downs offset each other, gasoline as a whole rose by RMB 2,000/ton, and diesel as a whole rose by RMB 1,925/ton.

At the same time, an unexpected "restricted purchase" situation has appeared in the diesel market. Guangdong, Jiangsu and many other domestic diesel oils have been "restricted from batch to retail", and the selling price is lower than the buying price, which has led to restrictions on the purchase of diesel at many petrol stations. , There is only a limit of about 100 liters per car, which even caused dissatisfaction among drivers and even erupted conflicts.

What is even more disturbing to the chemical industry is that the current epidemic has spread rapidly and has spread to 13 provinces and 25 cities. Hundreds of people have been diagnosed with the infection. Many places have entered emergency situations, temporary traffic control, inter-provincial transportation suspension, and the promotion of unnecessary trips to the provinces. It has had a huge impact on the transportation of chemicals (related reading: another limit! Up to 56 days! 11 provinces, municipalities, and urban areas are urgently "closed and controlled"!).

On the one hand, international crude oil fluctuates at a high level, insufficient supply at the source, and supply shortages. Seeing the rising price of chemical raw materials, the pressure on purchasing raw materials has increased; on the other hand, domestic refined oil prices have continued to rise, and liquefied natural gas (LNG) has also been affected overseas. , Prices continue to soar, resulting in increased freight transportation and hazardous chemicals logistics costs. Under the joint pressure, the chemical companies in the middle have only one way to increase prices to ease the burden of passing on costs. This also explains the recent collective letter sent by hundreds of chemical companies to increase the price. However, many downstream companies, such as power rationing and production restrictions, the spread of the epidemic, the suspension of automobile production, and the cold wave of the property market, have been frustrated and resisted and suppressed the high-priced raw materials. Whether these price increase letters can be sold is yet to be further verified.