The energy crisis continues to ferment! When will the upstream and downstream stop production and price increase stop?

Recently, the energy crisis has continued to ferment. On October 26, although the international principle fluctuated slightly, it was still at a high level! Affected by this, the prices of its downstream products have also skyrocketed, and gasoline prices in countries around the world have set a new record high.

Domestic: At 24:00 on October 22, gasoline and diesel (standard products) will be increased by 300 yuan and 290 yuan per ton respectively! This also means that 95# gasoline in various regions in China has basically entered the era of 8 yuan, which has set a new high in oil prices this year.

Japan: As Japan's oil supply is almost entirely dependent on imports, the rise in international oil prices has caused the prices of Japanese petroleum products to rise steadily. As of October 22, Japan's regular gasoline has been rising for five consecutive weeks, rising to 160 yen per liter, equivalent to 9.2 yuan, a new high in three years.

South Korea: As of October 24, it has exceeded 1700 won, equivalent to 9.26 yuan. The average price in Seoul has risen to 1,800 won, equivalent to about 9.80 yuan, and the average gasoline price has also reached a seven-year high.

United States: As of October 21, the average gasoline price in the United States was $3.36 per gallon, a record high since 2014!

United Kingdom: According to the latest data released by the National Bureau of Statistics on October 20, the price of gasoline in the United Kingdom surged 19% year-on-year in September, reaching 1.35 pounds per litre, equivalent to 11.86 yuan, the highest level in eight years.

According to the National Climate Center, since July 2021, the sea temperature in the equatorial Central and Eastern Pacific has continued to decline. It is expected to enter La Niña in October, and a weak to moderate La Niña event will be formed in the winter. The increase in market demand for heating in winter is expected to aggravate Asia’s energy crisis. Coal and natural gas prices have risen, and severe winters will increase heating demand, which may boost demand for power generation energy such as natural gas and coal to a certain extent, thus exacerbating market concerns about energy shortages in winter.

At present, the pain of the global energy crisis continues to ferment, and has extended to industries such as oil, natural gas, coal, power generation, chemical industry, fertilizer and supply chain. As OPEC+ has no intention to substantially increase crude oil production, the agency predicts that energy prices will continue to rise by more than 2% in 2022 after the energy price rises by more than 80% in 2021. With the arrival of winter, the overall electricity consumption seasonally rises, superimposing the traditional short-term energy supply. It is difficult to expand significantly. The current energy crisis will make the imbalance between supply and demand in the chemical industry even more severe, and the gap in the supply of chemical products will further increase.

Under the energy crisis, some companies choose to stop production for maintenance

Jiangsu Chengxing Phosphorus Chemicals issued an announcement on the suspension of production of its holding subsidiaries, stating that the Yunnan Maitreya Phosphorus Power Chemical Production Plant has suspended power supply due to the construction of high-speed rail lines. The Maitreya Phosphorus Power Production Plant plans to suspend production on October 23, 2021. , Is expected to start production around November 13, 2021.

*ST Chengxing announced at the end of September about the company and its subsidiaries to stop production and reduce production. Among them, the wholly-owned subsidiary Yunnan Xuanwei Phosphor Power Plant will stop production on September 23, 2021, and it is temporarily impossible to estimate the time to resume production.

Huizhou KMT Gas Co., Ltd. stopped for 48 days.

Nanya Plastics' 150,000-ton/year bisphenol A plant was shut down for maintenance on October 11 for one month.

Changchun Chemical (Jiangsu) has a production capacity of 405,000 tons of bisphenol A per year and 3 production lines. Lines 2 and 3 are scheduled to be shut down for maintenance at the same time from mid-September to the end of October. The estimated maintenance time is 45 days.

South Korea's LG Chemical's 150,000-ton/year bisphenol A plant in Dashan is scheduled to shut down for maintenance from mid-October to early November.

Changchun Chemical's No. 2 and No. 3 bisphenol A production lines (with a total production capacity of 270,000 tons/year) plan to shut down for 45 days on September 15 for maintenance.

Rongxin’s 400,000-ton ethylene glycol plant was shut down for maintenance on the 21st due to plant reasons, and the duration is to be determined. Previously, the load of the plant was over 80%.

Hualu Hengsheng’s 100,000-ton/year DMF plant was shut down for maintenance on September 26 and is still under maintenance.

Shaanxi Xinghua’s 100,000-ton/year DMF plant has been shut down, and it is expected to restart at the end of October.

The Henan Junhua DMF plant has been shut down for nearly 2 months, and the supply has remained tight.

Zhenjiang Li Changrong's 50,000-ton/year MIBK plant was shut down for 26 days on October 18 for maintenance.

Taihua Idemitsu plans to maintain its 200,000-ton/year PC device from September to October.

Xinjiang Cathay Pacific Xinhua’s 200,000-ton/year BDO production facility has recently shut down for maintenance and is expected to restart around October 27-28.

The Yanghua branch and Lanhua Clean Energy Company, which are affiliated to Lanhua Science and Technology Co., Ltd., cease production from October 1 this year to March 31 next year; Lanhua New Materials Branch and Lanhua Coal Chemical Company cease production for 31 days.

Chemical companies have raised prices to shift cost pressures

Japan Polyethylene Co., Ltd.: Starting from November 11, the price of all grades of PE will be increased by 15 yen/kg (approximately 841 CNY/ton) or more.

JNC Co., Ltd.: Starting from November 1st, the price of acetic acid will be increased by 50 yen/kg (approximately 2795 CNY/ton).

BASF: Starting from November 1, the price of caprolactam and PA6 will increase by US$0.05/lb (704 CNY/ton), and the price of PA copolymer in North America will increase by US$0.15/lb (2111 Yuan / ton).

Korea Engineering (KEPITAL): Starting from November 1st, KEPITAL® POM products will be increased by USD 0.35/kg (approximately RMB 2237/ton).

Guangdong Zhujiang Chemical Coatings: On November 1st, amino resin paint, acrylic resin, alkyd resin paint and other products increased by more than 5%, mixed ink increased by more than 10%, and modified alkyd paint (including special paint for steel structure) increased 15% or more.

Nippon Decorative Materials (Guangzhou) Co., Ltd.: Starting from October 26, the 20KG/15KG quick-coating surface putty, clear flavor and anti-cracking/alkali-proof/anti-chalking/high-strength products will increase by 2.5 yuan; 20KG in pure state Home surface putty is increased by 2.5 yuan; 20KG/15KG specification Lebao surface putty is increased by 2.5 yuan; 25KG Shishile putty powder is increased by 2.5 yuan; 20KG quick-coating treasure alkali-proof base plaster, clear taste/wall protection/Micali/Jiang The home price will be raised by 2 yuan; the 20KG batch of Lebao bottom gypsum (heavy quality) will be raised by 2 yuan.

Anhui Wanwei High-tech Materials: Starting at 8 o'clock on October 26, the price of flocculent products will increase by RMB 2,000/ton.

Xinjiang Xinkai High Pigment Specialty Carbon Black: Starting from October 25, the unit price of all products will increase by RMB 1,200/ton.

Jiangxi Black Cat Carbon Black: Starting from October 25,the price of special carbon black products will increase by RMB 1,200/ton.

Hunan Sanhuan Pigment: Starting from October 25th, the sales price will be uniformly increased on the basis of the original product sales price. Iron oxide red: sales price increased by 1,000 CNY/ton (150 US dollars / ton); iron oxide yellow: sales price increased by 1,000 CNY/ton (150 US dollars / ton); iron oxide black: sales price increased by 1,500 CNY/ton (220 US dollars) /Ton).

Wacker ChemChina: Starting from October 22, the price of VINNAPAS®️Vinity®️ vinyl acetate-ethylene copolymer emulsion products will be increased by 1,500 CNY/ton or 200 US dollars/ton.

Zhejiang Fenghong New Material: The price of all products will be raised by 15% from now on. Please make a purchase plan for actual demand ten days in advance.

LANXESS: Globally, it imposes an energy surcharge on its inorganic pigment business. The prices of iron oxide and chromium oxide pigments will be increased by at least 300 Euros/ton (approximately 2,300 CNY/ton).

DSM: The price of Xytron™ PPS, a specialty engineering plastic in Greater China, increased by RMB 4500/ton.