Dozens of Chemicals Continue to Cut Prices

Recently, Wanhua Chemical released a product quotation sheet, and the prices of a variety of products have declined with greater intensity. Among them, the price of n-butanol in South China was 8,500 CNY/ton, down by 1,000 CNY/ton from the beginning of the month, the price of neopentyl glycol in North China was 15,800 CNY/ton, down by 800 CNY/ton from the beginning of the month, and the price of high-purity isobutylene was 9,750 CNY/ton. The quotation at the beginning of the month was down 350 CNY/ton; the quotation of methyl tert-butyl ether was RMB 6,200/ton, which was a decrease of 300 CNY/ton from the quotation at the beginning of the month; in addition, propylene, PVC and other products all showed certain declines.

The chemical industry leader Wanhua Chemical continues to keep low prices, and domestic and foreign chemical industry leaders continue to impact lower quoted prices. This has made many chemical workers wary. Perhaps the collective decline is not a "joking", but a "come for real." .

In less than a week, the prices of dozens of chemicals have fallen

Previously, Coatings Purchasing Network had reported that after the peak season of "Golden Nine and Silver Ten", the prices of many chemical products began to decline, and the trend is getting stronger. Now that it has entered the last month of 2021, the decline of chemicals has not stopped. In less than a week since the beginning of December, the prices of dozens of chemicals have fallen.

Crude benzene was quoted at 4,911 CNY/ton, down by 620 CNY/ton from the quotation at the beginning of the month, a decrease of 11.21%.

Isobutyraldehyde was quoted at RMB 7,200/ton, a decrease of RMB 800/ton from the quotation at the beginning of the month, a decrease of 10%.

Aniline was quoted at RMB 8,800/ton, a decrease of RMB 840/ton from the quotation at the beginning of the month, a decrease of 8.71%.

MIBK's quotation was 15,833.33 CNY/ton, a decrease of 1,333.34 CNY/ton from the quotation at the beginning of the month, a decrease of 7.77%.

The price of hydrogenated benzene was 6187.5 CNY/ton, a decrease of 500 CNY/ton from the quotation at the beginning of the month, a decrease of 7.48%.

The price of nitric acid was RMB 2,350/ton, a decrease of RMB 183.33/ton from the quotation at the beginning of the month, a decrease of 7.24%.

The price of n-propanol was 9,200 CNY/ton, down 666.67 CNY/ton from the quotation at the beginning of the month, a decrease of 6.76%.

The quotation of hydrofluoric acid was RMB 12,720/ton, a decrease of RMB 910/ton from the quotation at the beginning of the month, a decrease of 6.68%.

The price of n-butanol was 8366.67 CNY/ton, down by 566.66 CNY/ton from the quotation at the beginning of the month, or 6.34%.

The quotation of isooctanol was RMB 10,933.33/ton, a decrease of RMB 633.34/ton from the quotation at the beginning of the month, a decrease of 5.48%.

The price of neopentyl glycol was RMB 13,750/ton, a decrease of RMB 750/ton from the quotation at the beginning of the month, a decrease of 5.17%.

Acetic acid was quoted at RMB 6,250/ton, a decrease of RMB 340/ton from the quotation at the beginning of the month, a decrease of 5.16%.

Acetone was quoted at RMB 5412.5/ton, a decrease of RMB 287.5/ton from the quotation at the beginning of the month, a decrease of 5.04%.

The quotation of caustic soda was 802.5 CNY/ton, a decrease of 40 CNY/ton from the quotation at the beginning of the month, a decrease of 4.75%.

Epichlorohydrin is quoted at RMB 14,350/ton, a decrease of RMB 700/ton from the quotation at the beginning of the month, a decrease of 4.65%.

DBP's quotation was 9,333.33 CNY/ton, a decrease of 450 CNY/ton from the quotation at the beginning of the month, a drop of 4.60%.

Liquid epoxy resin was quoted at RMB 27,600/ton, a decrease of RMB 800/ton from the quotation at the beginning of the month, a decrease of 2.82%.

Bisphenol A was quoted at RMB 16412.5/ton, a decrease of RMB 462.5/ton from the quotation at the beginning of the month, a decrease of 2.74%.

Why did chemical raw materials suddenly plummet? Industry insiders said that the price drop is related to weaker downstream demand. Previously, when Coatings Purchasing Network communicated with many professionals in the industry, most of them said that the current situation is that the supply and demand are weak. The demand side includes not only the reduction in the operating rate of downstream manufacturers caused by domestic electricity curtailment and production, but also the overseas epidemic counterattack. Demand in European and American countries has fallen and my country's foreign trade exports have been blocked. Under the combined effect, chemical companies have seen a decline in orders and accumulation of inventories, and companies have a strong willingness to ship products and continue to lower their offer prices. The mentality of the market is mainly wait-and-see. The downturn in purchasing drove down the sentiment of chemical products, and the poor performance on the demand side has caused more and more chemical products to fall in price.

In addition, from the domestic situation, whether it is the strict control of coal prices by the National Development and Reform Commission, or the fact that the National Standing Committee has repeatedly proposed that bulk commodities do not have the basis for price increases, or the recent requirements of the Ministry of Industry and Information Technology to ensure the safety and stability of the raw material industrial chain and supply chain, etc. They all clearly expressed their determination to ensure the supply of domestic bulk industrial products and stabilize prices, which will also play a certain role in promoting the recent decline in chemical product prices.

As for the trend of subsequent prices, industry insiders said that one is related to downstream demand. For example, chemical products in the real estate, automobile, and aluminum industry chains will continue to experience weakening demand and then falling prices; for exports of titanium dioxide, resin, etc. There are many chemicals, and overseas demand has a greater impact on the prices of chemicals. Before the blockade caused by the overseas epidemic is over, the prices of these products will hardly show a major improvement.