Dropped 10,000 CNY/ton! These Chemical Raw Materials Are Slashing Prices

After more than a month of continuous decline, the price of yellow phosphorus finally hit the bottom. The current price of yellow phosphorus is 30,500 CNY/ton, down 10,166 CNY/ton from the beginning of the year. The price of downstream purchases is generally negotiated at around 29,000 CNY/ton, and the yellow phosphorus producers are very willing to support the price. Therefore, the trading atmosphere on the market is general, and the overall market is deadlocked. Some yellow phosphorus companies wait and see the market at low prices and suspend orders.

Industry insiders said that the current favorable support for the yellow phosphorus market is limited, and the operating rate in Yunnan and Sichuan is gradually increasing, and the operating rate in Guizhou and other places will also increase. It is expected that the daily output in January will increase by about 150-200 tons. It is beneficial to the price of yellow phosphorus. As the Spring Festival holiday is approaching, yellow phosphorus companies are generally clearing their inventories. Under the continuous price reduction of downstream purchases, it is expected that the short-term yellow phosphorus price will remain low.

Demand is cold, sales are rejected, and prices of more than 40 chemicals fall

Previously, the Paint Purchasing Network reported that nearly 100 kinds of chemical products have risen since the beginning of the year, and leading companies have also moved frequently. Many chemical companies have reported that this wave of "price increase dividends" has not affected them. In the chemical market, yellow phosphorus, More than 40 kinds of chemicals such as butanediol and soda ash have shown a continuous decline in prices, which has attracted the attention of many chemical and downstream industries.

The quotation of soda ash was 2237.5 CNY/ton, down 462.5 CNY/ton compared with the quotation at the beginning of the year, a decrease of 17.13%.

The quotation of ammonium sulfate was 1,500 CNY/ton, down 260 CNY/ton or 14.77% from the quotation at the beginning of the year.

The price of sodium metabisulfite was 2433.33 CNY/ton, down 300 CNY/ton from the price at the beginning of the year, a decrease of 10.98%.

The price of R134a is 28,000 CNY/ton, which is 3,000 CNY/ton lower than the price at the beginning of the year, a decrease of 9.68%.

Butanediol was quoted at RMB 28,200/ton, down by RMB 2,630/ton or 8.53% from the quote at the beginning of the year.

The quotation of maleic anhydride was 11,166.67 CNY/ton, down 1,000 CNY/ton or 8.22% from the quotation at the beginning of the year.

The quotation of dichloromethane was 5510 CNY/ton, down 462.5 CNY/ton compared with the quotation at the beginning of the year, a decrease of 7.74%.

The quotation of formaldehyde was 1166.67 CNY/ton, down 90.83 CNY/ton compared with the quotation at the beginning of the year, a decrease of 7.22%.

The quotation of acetic anhydride was 9675 CNY/ton, down 675 CNY/ton compared with the quotation at the beginning of the year, a decrease of 6.52%.

In addition, some major manufacturers such as Lihuayi, Baichuan Chemical, and Wanhua Chemical also issued notices of lowering product quotations.

Jinan Jinrihe Chemical's Dow 99.9% premium tripropylene glycol methyl ether is quoted at about 30,000 CNY/ton, and the price is lowered by about 2,000 CNY/ton.
The ex-factory quotation of isobutyraldehyde of Shandong Lihuayi Group is 16,000 CNY/ton, and the price is lowered by 500 CNY/ton.

Dongying Yisheng butyl acetate quoted 9700 CNY/ton, the price was reduced by 300 yuan.

Wanhua Chemical's price of propylene oxide is 11,500 CNY/ton, and the price is lowered by 200 CNY/ton.

Jinan Jinrihe Chemical Co., Ltd. quoted 10,400 CNY/ton of isooctanol, and the price was lowered by 200 CNY/ton.

Shandong Lihuayi Group's price of isooctanol is 10,300 CNY/ton, and the price is lowered by 100 CNY/ton.

Nanjing Yangzi Bipi acetic acid was quoted at RMB 5,700/ton, and the price was lowered by RMB 200/ton.

Jiangsu Baichuan Chemical's offer of butyl acetate is 9,800 CNY/ton, and the price is reduced by 100 yuan.

The price of conventional spinning bright (mainstream) PA6 slices in Yuyao market is 15,700 CNY/ton, and the price is reduced by 100 yuan.

Shandong aldehyde industry chemical paraformaldehyde (96) quoted 5600 CNY/ton, the price was reduced by 200 CNY/ton.
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According to incomplete statistics, the prices of dozens of chemical products have fallen since the beginning of 2022. Now that the Spring Festival holiday is less than half a month away, the downstream just needs to purchase not much, and the logistics are also being shut down one after another. The shutdown of real estate, infrastructure projects, automobile manufacturing and other industries has gradually increased, and the market has gradually cooled down, resulting in a sharp drop in the demand for chemicals. Some chemical factories lowered their ex-factory quotations in order to prevent stockpiling during the Spring Festival, but the anticipated downstream bottom-hunting and replenishment have not yet occurred.

The continuous decline in quotations is undoubtedly a bolt from the blue for manufacturers. Some chemical manufacturers such as yellow phosphorus and soda ash chose to close the quotations and not make quotations. The purpose is to avoid excessive losses, and at the same time, they are also waiting for the market to recover after the holiday. At the end of last year, the dual control of energy consumption that lasted for 4 months has now weakened, and the operating rate of some chemical fields has rebounded. The rapid subversion of the contradiction between supply and demand will also cause the price of chemical products to fall. One side is selling, the other is not selling, but behind the different operations are the same helplessness and worry. Compared with the increase in prices, the chemical enterprises that made a lot of money and the price of their inventories continued to depreciate, but faced the huge pressure of "decrease or not to decrease" when the Spring Festival was approaching.