Giants Such as BASF, Dow, and Mitsui Chemicals are Competing to Increase Prices!

On May 24, the average retail price of regular gasoline in the United States was $4.598 per gallon (about 8.1 yuan per liter), up 51% from $3.039 a year ago. Last week, gasoline prices in all 50 states crossed the $4 mark for the first time ever. The lowest gasoline prices are in Oklahoma and Kansas, at around $4.065 per gallon, and the highest in California, where the average price has hit $6.069.

The chemical market in 2022 is too unusual. Under the background of continued weak downstream demand, various chemical products can still see a sharp rise, which makes many companies feel that life is hopeless, and many companies choose to lie down collectively. However, the downstream lay flat did not affect the skyrocketing price of raw materials.

Since the second quarter, domestic and foreign chemical giants such as Chemours, Longbai, BYK, Dow, and Wanhua have set off a new round of raw material price hikes.

Titanium dioxide, known as the "class representative" of the pigment industry, has risen again recently. Following the "one brother" Longbai Group, which has risen twice in three days, China Nuclear Titanium Dioxide, Tianyuan Group, Titanium Sea Technology, Longteng Titanium Industry and other domestic titanium dioxide. The company followed suit and announced product price hikes one after another, setting off the third round of price hikes for domestic titanium dioxide companies this year.

Fumin Longteng Titanium Industry: The price of various types of titanium dioxide is increased by 700 CNY/ton for the domestic market and 100 US dollars/ton for the international market on the basis of the original price in April.

Longbai Group: The sales price of chlorinated titanium dioxide is increased by 700 CNY/ton, and the sales price of R-996, LR-108, LR-972 sulfuric acid titanium dioxide is increased by 500 CNY/ton.

China Nuclear Titanium Dioxide: The sales price of various types of titanium dioxide is increased by RMB 500/ton for domestic customers on the basis of the original price.

Tianyuan Group: The sales price of chlorinated titanium dioxide in the domestic market was increased by 500 CNY/ton, and the sales price in the international market was increased by 100 CNY/ton.

Panzhihua Titanium Sea Technology: The price of rutile titanium dioxide and anatase titanium dioxide has been increased by 500 CNY/ton on the original basis.

From the current market point of view, all types of titanium dioxide are at a high level. In addition, global carbon black giant Birla Carbon recently announced that it will increase the price of all carbon black products produced in North America. The price increase will take effect on July 1, and the increase will be 15%. All shipped.

In addition, many overseas chemical leaders have also begun to send letters to increase, and important raw materials for the coating industry such as resin, neopentyl glycol, bisphenol A, and polyol are also included.

Mitsubishi Chemical HD Group:

From June 21, the price of PET bottles will be raised again by 10% on the existing basis.

From June 1st, the price of modified polyphenylene ether resin has been raised globally, domestically by more than 64 yen/kg (about 3,354 CNY/ton); abroad by more than 0.6 US dollars/kg (about 4,016 CNY/ton).

BASF:
From June 1, the price of polyols will be increased:

Neopentyl glycol rose by 110 US dollars / ton (about 736 CNY/ton)

1,6 ethylene glycol flakes rose by 441 US dollars / ton (about 2951 CNY/ton)

1,6 ethylene glycol melting rose by 441 US dollars / ton (about 2951 CNY/ton)

Polycaprolactone rose by 441 US dollars / ton (about 2951 CNY/ton)

ε-caprolactone rose by 441 US dollars / ton (about 2951 CNY/ton)

1,5-Pentanediol rose by $441/ton (about 2951 CNY/ton)

Mitsui Chemicals:

Raise the price of bisphenol A (BPA), up to 49 yen/kg (about 2,568 CNY/ton), which is the second time this year after the announcement in late March.

Tosho:

From June 15, the prices of bromine and bromine derivatives will be raised. The target products are bromine, hydrobromic acid and Framecut 120G series of brominated flame retardants, with an increase of more than 30%.

More than 60 kinds of chemical products have risen in price, and the bullish expectation of the chemical industry chain has increased

In addition, many chemicals have also shown an upward trend recently, including the raw materials in the petrochemical industry chain, which can be described as rising rapidly.

The current price of acetic acid is 5140 CNY/ton, which is 880 CNY/ton higher than the price at the beginning of the month, an increase of 20.66%;

The current price of isobutyraldehyde is 16866.67 CNY/ton, an increase of 2700 CNY/ton compared with the price at the beginning of the month, an increase of 19.06%;

The current price of acetic anhydride is 8525 CNY/ton, an increase of 1087.5 CNY/ton compared with the price at the beginning of the month, an increase of 14.62%;

The current price of monoammonium phosphate is 4300 CNY/ton, which is 530 CNY/ton higher than the price at the beginning of the month, an increase of 14.06%;

The current price of phosphate rock is 870 CNY/ton, which is 106.67 CNY/ton higher than the price at the beginning of the month, an increase of 13.97%;

The current price of sulfur is 4063.33 CNY/ton, an increase of 476.66 CNY/ton compared with the price at the beginning of the month, an increase of 13.29%;

The current price of propylene glycol is 12733.33 CNY/ton, an increase of 1433.33 CNY/ton compared with the price at the beginning of the month, an increase of 12.68%;

The current price of diammonium phosphate is 4125 CNY/ton, an increase of 450 CNY/ton compared with the price at the beginning of the month, an increase of 12.24%;

The current price of sodium metabisulfite is 3150 CNY/ton, an increase of 333.33 CNY/ton compared with the price at the beginning of the month, an increase of 11.83%;

The current price of PX is 9,900 CNY/ton, an increase of 1,000 CNY/ton from the price at the beginning of the month, an increase of 11.24%;

The current price of n-butanol (industrial grade) is 10133.33 CNY/ton, an increase of 966.66 CNY/ton compared with the price at the beginning of the month, an increase of 10.55%.

The prices of various chemicals such as neopentyl glycol, isobutyraldehyde, epoxy resin, and epichlorohydrin have risen, driving up the rise of the main raw materials for coatings such as emulsions and resins. The rising prices of dahua products in the petroleum industry chain have also boosted the bullish expectations for domestic alcohol ether solvent products, not to mention the delayed overseas delivery of auxiliaries and high-end raw materials due to the epidemic and other reasons. This also means that many important raw materials in the chemical industry are facing the crisis of recent supply and price increases.

AkzoNobel, Axalta, Nippon Paint and other companies have also issued price increase letters frequently recently, and the main reason for the price increase is, without exception, the increase in raw material prices. Some companies even stated that the price of raw materials, logistics and transportation prices have far exceeded their own affordability, and they had to increase product prices in order to continue operating.

On the one hand, the surge in energy prices such as crude oil and natural gas caused by the EU sanctions in the international situation has affected the production and operation of chemical raw material giants. The multiple rounds of price increases and shortage of supply on the raw material supply side have severely squeezed the profits of chemical companies. On the other hand, the epidemic continues to spread, domestic transportation has not been completely unblocked, seaport transportation and land transportation are very crowded, and it is even difficult to find one cabin. Raw materials are difficult to obtain, orders are difficult to send, and funds are difficult to return, which has brought another ruthless fire to chemical companies whose profits are close to the red line and are at stake.