51 Enterprises in Key Chemical Towns Resume Production. Zhenhai Refinery, LG, etc. Resume Transportation

On December 19, Ningbo City held a press conference on the prevention and control of the covid epidemic. At the meeting, it was announced that from 15:00 yesterday, the city's emergency response level will be adjusted from level I to level II, and the lockdown of the streets except Jiaochuan in Zhenhai District will be lifted. Temporary closed management outside the zone and control zone.

According to the press conference, urban passenger and freight transportation in Zhenhai District of Ningbo City will be normal. The bus line will gradually resume operation from 15:00. Rail transit will resume operation on the 20th. The regulation of one person going out for two days per household to purchase daily necessities will no longer be implemented. All kinds of business service industries and enterprises resume work and production in an orderly manner, and education in primary and secondary schools resumes.

Zhenhai District has opened green channels for petrochemical companies facing supply interruptions in the industrial chain, huge compensation for urgent foreign-related orders, and reduced load operations, and implemented a temporary pass management system to enter and exit Zhenhai District. As of 15:00 yesterday, a total of 51 companies in the district resumed production and 6910 employees resumed work.

The petrochemical products of Zhejiang Railway Dafeng Petrochemical, Zhenhai Refining and Chemical, LG Yongxing Chemical and other enterprises located in Zhenhai District, Ningbo will gradually resume transportation!

However, from a global perspective, the epidemic is still not optimistic! According to a report from the World Health Organization on the 18th, 89 countries and regions around the world have reported cases of infection with the mutant strain of the new crown virus Omi Keron; in areas where community-transmitted cases have occurred, the spread of the virus has reached "a doubling of the number of cases in a day and a half to three days." ".

Environmental protection + epidemic containment, raw materials are difficult to rise!

The production of factories in Zhejiang has been suspended due to the epidemic. Many manufacturers have issued notices of suspension of work and holiday. Even if the official announcement can resume production, some manufacturers still keep the holiday. In addition, 12 factories in Shaoxing, Zhejiang Province were ordered to shut down and rectify within a time limit due to strict implementation of epidemic control. On the other hand, Jiangsu, which is also a major chemical province, has recently forced a large number of manufacturers to suspend production due to environmental protection issues. Among them, the Shengze area has no pollution permit for water spraying and related companies have suspended production for 10 days.

Zhejiang has a large number of textile companies. Taking textile raw materials as an example, it can be seen that the epidemic and environmental protection have little impact on them. The main factor affecting price trends is still downstream/terminal demand.

PA6: Stop falling and maintain stability, follow-up rising trend depends on terminal demand

The upstream pure benzene pulls up the raw material caprolactam, and the cost of PA6 has eased. The overall operating rate of the domestic PA6 polymerization plant is 70%. The maintenance of some companies is good for the price of PA6. Due to the shrinking supply, the downstream publicizes the stocking and the polymerization plant signs an increase. The current price is 15200-17500 CNY/ton, PA6 is expected to increase due to terminal demand.

PA66: Continued to fall

The upstream supply of adipic acid increased and the demand was sluggish. Sellers lowered their quotations and lowered the market price of PA66. Moreover, the operating rate of the domestic PA66 industry continues to be low, the inventory in each port is insufficient, and the overseas shipping capacity is affected by the international health incidents. It is in short-term and long-term lack of delivery. Sellers are slow to follow up with the goods. 41,000 CNY/ton, it is expected that PA66 still has room for downward adjustment.

PTA: The demand is sluggish, and there is still room for downside!

PTA factory maintenance increased, mainstream suppliers reduced December contract supply, and the market focused on destocking. However, international crude oil prices have fallen, and the downstream polyester plants have started to operate at 80% of the load and demand has decreased. On December 20, the market price was 4700 CNY/ton, and it is expected that PTA will continue to decline as the market digests.

The epidemic is still there, and epidemic prevention is still the first!

Towards the end of the year, manufacturers' production has gradually slowed down, and market price trends have followed downstream demand swings. Even if the recent rebound in the epidemic has caused the main production areas to stop production, it will be difficult to drive prices up. You are wary of the news of the epidemic. The epidemic is still in place. Many places have advocated in-situ Chinese New Year, or reverse operations have caused migrant workers to leave early and return home. It is expected that the market will continue to operate smoothly.