Crash! A Variety of Chemical Raw Materials Fell 7 Times in A Row

The operating rate of many chemical industries is low, the main factor is that the demand group is in a weak position, and the high price hinders the demand. At present, the north is drought and the south is flooded, and the demand is difficult to increase. In the case of reduced orders, chemical companies can only reduce the operating rate and actively slow down a series of processes such as normal production, transportation, and sales in order to avoid inventory accumulation or solve the existing inventory pressure.

In addition to the reduction in operating rates, the chemical industry has also made the ultimate self-help measure-cutting prices. According to incomplete statistics, the prices of some chemical products have fallen for seven consecutive years, with the price falling by more than 6,000 CNY/ton.

▶Neopentyl glycol has fallen for seven consecutive days, with a cumulative price drop of 4,850 CNY/ton, and the current price is 11,300 CNY/ton.

▶BDO fell for seven consecutive days, with a cumulative price drop of 1,900 CNY/ton, and the current price is 20,050 CNY/ton.

▶Bisphenol A has fallen for seven consecutive days, with a cumulative price drop of 1,850 CNY/ton, and the current price is 12,900 CNY/ton.

▶Epichlorohydrin has fallen for seven consecutive years, with a cumulative price drop of 1,816 CNY/ton, and the current price is 15,950 CNY/ton.

▶N-butanol has fallen for seven consecutive years, with a cumulative price drop of 1,650 CNY/ton, and the current price is 8,150 CNY/ton.

▶DOP has fallen for seven consecutive days, with a cumulative price drop of 1,620 CNY/ton, and the current price is 9,720 CNY/ton.

▶Butanone has fallen for seven consecutive years, with a cumulative price drop of 933 CNY/ton, and the current price is 10,150 CNY/ton.

▶Acetone has fallen for seven consecutive days, with a cumulative price drop of 540 CNY/ton, and the current price is 5575 CNY/ton.

▶Phenol has fallen for seven consecutive days, with a cumulative price drop of 512 CNY/ton, and the current price is 10,575 CNY/ton.

▶Octanol has fallen for six consecutive years, with a cumulative price drop of 1900 CNY/ton, and the current price is 9143.75 CNY/ton.

▶Liquid epoxy resin has fallen for six consecutive years, with a cumulative price drop of 1,375 CNY/ton, and the current price is 22,325 CNY/ton.

▶Isobutyraldehyde has fallen for five consecutive years, with a cumulative price drop of 6,250 CNY/ton, and the current price is 7,400 CNY/ton.

In addition, the prices of raw materials in the coatings industry chain and related derivative industry chains basically showed a downward trend. MDI fell by 19.05% during the year, propylene oxide fell by 38.26% during the year, adipic acid fell by 2.42% during the year, and silica fell by 5.93% during the year. Rutile titanium dioxide fell by 0.48%, butylene glycol fell by 26.78%, n-propanol fell by 2.27%, ethyl acetate fell by 2.25%, butanone fell by 6.96%.

It is not difficult to see that the current operating rates of dozens of chemical products are all low, which can be called active "laying down". If it is said that it is the "Buddha system" of the enterprise, no one will believe it if it does not care about profit and loss. The fundamental reason is the joint pressure of upstream and downstream, especially the shortage of orders in the downstream. Many coating companies said that there were no orders anyway, and no one would buy them if the price was lowered. Instead, they would lock the price of the product at a low point, which would affect the progress of future price increases. Moreover, the production line's full firepower brings more cost increases such as water, electricity and gas, and huge pressure on staff wages. It is better to stop and talk slowly. It is possible to reduce the burden and reduce production to 50%.

Judging from the current market situation, the overall national market is in a downward trend. Many downstream industries such as automobiles, real estate, furniture, and home appliances are in a downward trend in sales. Force majeure such as the epidemic cannot be quickly eased in the near future. The "production cut" plan will not be a joke. But whether it will stop production after the production cut, and whether it will be a complete shutdown after the reduction of the burden, maybe no one can speculate.