15 Days Out of Production! The Logistics Are Blocked in Many Places, And The Raw Materials Are 'Difficult to Travel'!

At the beginning of 2022, issues such as coal supply cuts in Indonesia and natural gas riots in Kazakhstan have caused global energy tensions. Recently, a fire broke out in another major factory in China and production was suspended for 15 days, which will affect the supply of domestic raw materials!

Baling petrochemical fire! 15 days out of production!

At 20:10 on January 5, a flash-burning accident occurred in the first branch of Baling Petrochemical in Yueyang, Hunan. It can be seen from the video that a raging fire broke out in the factory area, illuminating the night sky, and a large number of fire trucks and police cars rushed to the door of the factory area.

At 0:00 a.m. on the 6th, the relevant personnel of the Yueyang Emergency Management Bureau stated that at 8:10 p.m. on the 5th, the crude gas pipeline of Yueyang Baling Petrochemical suddenly leaked and flashed. The two valve devices flashed off within 10 minutes, causing no casualties.

It is understood that due to the unexpected shutdown of the hydrogen production plant of Baling Petrochemical, one production line of Baling caprolactam was shut down, and the other two were running at low load. The initial estimated shutdown time is about 10-15 days.

In addition, ShandongHaili's 200,000-ton capacity caprolactam plant was shut down, and Shandong Luxi Chemical's second-phase caprolactam plant was shut down, and the restart time is to be determined. Many major raw material factories have stopped production, and caprolactam raw materials may rise. As of January 7, the price of caprolactam was 14,100 CNY/ton, and the market trend was relatively stable.

Main uses of caprolactam raw materials: Nylon-6 chips are formed by polymerization, and can be further processed into nylon fibers, engineering plastics, plastic films, etc.

The epidemic has rebounded! East China logistics blockade!

The unexpected shutdown of manufacturers affected supply, and the logistics affected by the epidemic also led to tight downstream supply.

During the New Year's Day, Ningbo Beicang Port, the fourth largest in the world, was blocked due to the epidemic, affecting nearby polypropylene production enterprises such as Ningbo Formosa Plastics and Donghua Energy (Ningbo) New Materials, involving a production capacity of 3.05 million tons.

From the above table, it can be seen that in the short term, the transportation of many enterprises will be affected, and another businessman said that the logistics will be delayed by 21 days, so the delivery time of raw materials will be prolonged, or the supply of resources may be tight, which will push up the prices of polypropylene and related products. However, at present, Beilun Port has issued various measures such as green passes, and is doing its best to alleviate the inconvenience caused by logistics and transportation to the market. Major enterprises are also using various channels to relieve the current inventory pressure. It is expected that polypropylene will not rise due to transportation in the short term. Space, beware of downside risks.

The voice of market speculation is gradually rising, beware of the risk of falling back

Due to the combination of factors such as blocked logistics and transportation, rising electricity prices, tension in the international energy situation, and counterattack of the epidemic, the market speculation is gradually increasing, but the terminal demand in the market is not clear for the time being. Please be alert to the risk of falling back.