7 Consecutive Rises! Chemical Raw Materials Continue to 'Hurricane'!

Recently, Jiangxi Guangyuan Sales Co., Ltd. issued a letter saying that due to the recent continuous rise in oil prices and the continuous tightening of the epidemic, the freight rate has risen sharply, and the transportation cost has increased sharply, which has brought huge pressure to the company, and decided to start from March 23. , the shipping fee will be increased for the customer.

This price increase letter also expresses the aspirations of many chemical companies. In addition to the continuous surge in raw material prices, the chemical industry is also facing high freight and other operating costs recently, which can be described as multiple attacks. According to incomplete statistics from the Paint Purchasing Network, a variety of raw materials such as ethanol, toluene, and xylene have been on the rise recently, even forming a spectacular scene of seven consecutive rises.

"Seven consecutive rises"! A variety of chemicals are rising rapidly

Butanone rose for seven consecutive days, with a cumulative increase of 1033.34 CNY/ton.

The price of cubutanone from Shandong Dongming Petrochemical's purified water rose by 500 CNY/ton, and the quotation was 14,000 CNY/ton.

The price of cubutanone from Nantong Runfeng Petrochemical Co., Ltd. rose by 500 CNY/ton, and the price was 14,000 CNY/ton.

The price of cubutanone from Nanjing Runsheng Petrochemical's purified water rose by 300 CNY/ton, and the quotation was 13,800 CNY/ton.

Ethanol has risen for six consecutive years, with a cumulative increase of 245 CNY/ton.

Guangxi Jinyuan Ethanol rose 50 CNY/ton, and the quotation was 8,300 CNY/ton.

Jiangsu Dongcheng Biotech ethanol rose 100 CNY/ton, and the price was 6900 CNY/ton.

The high level of Henan ethanol market continued to rise, the premium grade rose to 7,200 CNY/ton including tax, and the anhydrous rose to 8,050 CNY/ton including tax.

Toluene rose for four consecutive days, with a cumulative increase of 400 CNY/ton.

Sinopec's toluene price in South China was raised by RMB 100/ton.

Yellow phosphorus rose for four consecutive days, with a cumulative increase of 2,750 CNY/ton.

Mainstream enterprises in Yun, Gui and Sichuan are quoted at 36,000-37,000 CNY/ton for ex-factory acceptance of net phosphorus. There is still room for bullishness in mainstream prices, and spot supply is tight.

Xylene rose for four consecutive days, with a cumulative increase of 582.5 CNY/ton.

Pure benzene rose for three consecutive times, with a cumulative increase of 467.5 CNY/ton.

The mainstream price of pure benzene in East China is around 8400-8600 CNY/ton, the Shandong market price is around 8300-8400 CNY/ton, and the listed price of Sinopec is 8400 CNY/ton. The supply of goods in Shandong is limited, downstream purchases are active, transactions have increased, and market prices have risen.

TDI rose for three consecutive times, with a cumulative increase of 170 CNY/ton.

The latest execution price of Shanghai Covestro TDI is 20,700 CNY/ton, an increase of 500 CNY/ton, and the supply is limited. The domestic TDI market has been sorted out and up, and the holders are optimistic, and the offers have risen.

Methanol rose for three consecutive times, with a cumulative increase of 208.86 CNY/ton.

The mainstream price in Linfen, Shanxi, rose by 150 CNY/ton to 2,760 CNY/ton, and the mainstream ex-factory price in Jincheng area rose by 50 CNY/ton to 2,600 CNY/ton.

The methanol market in Henan region rose sharply. Xinxiang Zhongxin sells by tender, the transaction price is 3040-3045 CNY/ton for factory acceptance, and other companies refer to 3000 CNY/ton for factory cash exchange; Luoyang market negotiation rises to 3000-3020 CNY/ton cans of cash exchange.

The methanol market in the two lakes area rose sharply. The quotation of Hubei enterprises has been raised, and the factory reference is 3000-3200 CNY/ton to withdraw cash;

Hydrogenated pure benzene rose for three consecutive times, with a cumulative increase of 341.66 CNY/ton.

Propylene oxide rose for two consecutive gains, with a cumulative increase of 560 CNY/ton.

The local mainstream spot exchange delivery price in East China is 11800-12100 CNY/ton; the local mainstream spot exchange transaction negotiation in Shandong and North China is 11600-11700 CNY/ton; the mainstream spot exchange price in South China is 11700-11800 CNY/ton.

Ethyl acetate rose for two consecutive rises, with a cumulative increase of 371 CNY/ton.

Jiangsu Lianhai Acetic Acid Biotechnology increased by 300 CNY/ton, and the current price is 8,500 CNY/ton.

Jiangsu Baichuan Hi-Tech New Materials has increased by 200 CNY/ton, and the current price is 8,500 CNY/ton.

Yankuang Guotai Chemical has raised its price and is now offering 8,000 CNY/ton for acceptance.

The aggregated MDI rose for two consecutive days, with a cumulative increase of 150 CNY/ton.

In March 2022, the MDI listing price in China will be 22,800 CNY/ton in the aggregated MDI distribution market in China (unchanged month-on-month); the pure MDI listing price will be 26,800 CNY/ton (a month-on-month increase of 3,000 CNY/ton).

Octanol rose for two consecutive days, with a cumulative increase of 356.25 CNY/ton.

DOP rose for two consecutive days, with a cumulative increase of 260 CNY/ton.

In addition, the prices of many chemical products have risen this week compared with the previous week. Among them, lithium hydroxide has risen by 10,000 yuan per ton, and the price of polysilicon and lithium carbonate has risen by more than 1,000 yuan per ton.

The price of sulfuric acid was 1076.67 CNY/ton, up 190 CNY/ton from the previous week, or 21.43%;

The price of sulfur was 3183.33 CNY/ton, up 400 CNY/ton from the previous week, or 14.37%;

Formic acid was quoted at 5466.67 CNY/ton, up 533.34 CNY/ton from the previous week, or 10.81%;

The quotation of butadiene was 10571.25 CNY/ton, an increase of 985 CNY/ton from the previous week, an increase of 10.28%;

The price of lithium hydroxide is 460,000 CNY/ton, an increase of 10,000 CNY/ton from the previous week, an increase of 2.22%;

The price of lithium carbonate was 478,000 CNY/ton, an increase of 9,000 CNY/ton or 1.92% from the previous week;

The price of polysilicon was 199,666.67 CNY/ton, an increase of 2,000 CNY/ton or 1.01% from the previous week.

Price changes of some chemicals in the past week

The chemical market reproduces the trend of "flour is more expensive than bread"

It is not difficult to see that many chemicals are in the oil industry chain or derivative industry chain, so the impact of high oil fluctuations is also more obvious. As crude oil rushed to US$130/barrel, the chemical market was almost insane. After the ups and downs, crude oil returned to US$115/barrel, and the chemicals in the energy and chemical sector rose accordingly. In the entire industry chain, the closer the upstream products are to the crude oil end, the stronger their ability to bear pressure and the smoother the price transmission. However, it is transmitted down one level at a time, and the closer it is to the downstream and end consumers, the more it will be affected by the weakness of the downstream, and it will not be able to be transmitted smoothly through price increases.

In addition, as stated in the price increase letter of Guangyuan Group, the current crude oil price increase and the shortage of natural gas supply have led to an increase in the transportation cost of chemical companies, and labor and miscellaneous expenses such as auxiliary materials, power, fixed costs, and processing fees are also rising. Most of the chemical companies that produce and sell now have losses.

For example, in the PTA industry, upstream costs are rising rapidly, downstream finished product prices are rising, and processing profits are squeezed. For a production enterprise with a daily output of 1,000 tons, the theoretical loss of the enterprise per day is between 400,000 and 500,000 yuan. In the past few years, the embarrassment of "barrels of oil is more expensive than oil" has occurred. If the current trend of rising crude oil and chemical raw materials cannot be contained and reversed, the market of "flour is more expensive than bread" may also appear in the future.