Supply 'Damaged'! The Chemical 'Price Hike' is Here Again!

Recently, Panzhihua Titanium Technology issued a price adjustment letter, saying that in view of the current high production cost of titanium dioxide and the current domestic and international titanium dioxide market conditions, after research and decision, the price will be adjusted as follows from now on, rutile titanium dioxide, anatase titanium dioxide Domestic customers increased by 500 CNY/ton, international customers increased by 80 US dollars / ton.

Industry insiders said the price increase was related to the orderly measures of local electricity consumption. At present, many regions in Sichuan have stopped work, and titanium dioxide enterprises have also been affected. The supply is becoming increasingly tight, and the price increase is also a matter of course. The appearance of this price increase letter has also attracted more and more people to pay attention to the impact of the shutdown of factories under the orderly use of electricity.


Several major chemical towns have stopped production, and the supply of raw materials such as titanium dioxide, resin, and yellow phosphorus has plummeted

In recent days, many places in my country have been hot and hot. The highest temperature in some areas of eastern Sichuan, central and western Chongqing, central Hunan, central Jiangxi, and western Zhejiang can reach above 40 °C. In order to protect residential electricity use, Zhejiang, Sichuan, Guangxi, Anhui and other places have imposed restrictions on industrial electricity use to a certain extent. Many chemical companies have reduced the operating rate, and the balance of supply and demand of locally produced chemicals is facing a huge challenge. There has even been a situation where the goods are tight and prices are rising.

Sichuan

At present, Sichuan has launched three-level power supply control measures to ensure electricity consumption for people's livelihood. From August 14th to 20th, emergency regulation of some high-capacity enterprises to stop production and give electricity to the people was implemented, and the electricity load was about 7 million kilowatts to ease the pressure on power supply. From August 15th to 20th, all industrial power users (including whitelisted key guarantee enterprises) in the orderly power consumption plan of Sichuan Power Grid will be completely shut down (except for security loads).

Titanium Dioxide: Supply Tightening, Stop Falling and Rebound

The output of titanium dioxide in Sichuan accounts for 22%, and the number and production capacity of titanium dioxide enterprises are in the forefront of the country. There are 11 titanium dioxide enterprises in Panzhihua, with a high degree of industrial aggregation. Under the influence of the recent power cuts in some domestic provinces and cities, the bullish sentiment in the market has recovered again.

Sichuan Province requires 19 cities (prefectures) to expand the scope of industrial enterprises to allow electricity to be used by the people, which has the risk of lower operating rates for the affected titanium dioxide producers. At present, the terminal supply of some manufacturers is tightening, and the trading market has been shouting to stop the decline. The market atmosphere is more complicated, and the long and short atmosphere is more anxious. At present, the supply side is discussing one by one.

Industrial silicon: nearly 100% shutdown rate and 6% price increase

The monthly production capacity of industrial silicon in Sichuan Province reaches 92,250 tons, accounting for 15.1% of the national total. Metro alloys and industrial silicon smelting enterprises in the main industrial silicon producing areas such as Aba Prefecture, Leshan City, and Ya'an City have shut down production in large areas or maintained production at different peaks. 90%-100%. At present, the operating rate of some silicon factories in Leshan, Aba and Ya'an in Sichuan has dropped to about 20%.

At present, the average price of domestic 441# silicon metal market is 19,150 CNY/ton, up 6.15% from the previous week. The price of 553# without oxygen in Sichuan area is about 18800-20000 CNY/ton, up 700 CNY/ton from July, an increase of 3.8%, and the price of 421# is 19800-20000 CNY/ton, up 1500 CNY/ton from the previous month, an increase of 3.8%. up to 9.3%.

Polysilicon: Major factories in the industry have limited power, and more than 2,000 tons of output have been damaged

Sichuan has a total annual production capacity of over 210,000 tons of polysilicon, of which Leshan Yongxiang (Tongwei) has an annual production capacity of about 106,000 tons, and GCL Technology’s production line with an annual capacity of 100,000 tons has climbed to nearly 30,000 tons. Xin Jun said that he had received a power cut notice. Assuming that companies resume production next week, the shutdown will bring about a loss of 2,350 tons of production.

The benchmark price of polysilicon was 293,666.66, an increase of 3.65% compared with August 1. At present, the lowest transaction price remains unchanged, but the highest transaction price has risen by 2,000 CNY/ton, and the highest price has returned to 310,000 CNY/ton. From August to September, the temperature is high and the power shortage is large. In some areas, the production of silicon material enterprises will be restricted, and the impact cycle will be far more than a few days of power outages.

Yellow Phosphorus: Nissan reduces 100 tons, most manufacturers discuss one by one

The production capacity of yellow phosphorus in Sichuan accounts for about 23% of the national total. Yellow phosphorus production enterprises are mainly located in Panzhihua, Liangshan, Leshan, Mianyang, and Ya'an. In terms of production capacity, Panzhihua accounts for 33% and Liangshan Prefecture accounts for 32%. , and other regions accounted for 35%.

Due to the intensification of power curtailment, the yellow phosphorus enterprises in Mianyang and Mabian areas of Sichuan were shut down, and the daily output was reduced by about 100 tons. At present, the current benchmark price of yellow phosphorus is 28000.00, an increase of 2.75% compared with August 1. The market price of yellow phosphorus has increased, and companies are reluctant to sell. Most yellow phosphorus manufacturers do not offer external quotations for the time being.

Lithium salt: production fell by 30%, and the price is expected to hit 490,000 CNY/ton

Sichuan is an important production center for lithium batteries and lithium salts. Affected by the shortage of power supply, all production in Sichuan has been suspended. Currently, Sichuan has a lithium salt production capacity of 274,200 tons, accounting for 29% of the total domestic production capacity. This round of power supply regulation is expected to affect the production of lithium salts between 2,800 and 3,200 tons in August. Considering the actual production process, the overall impact on production days is estimated to be 7-8 days. If calculated according to the estimated value of 3,000 tons, it is equivalent to a drop of about 30% in Sichuan's August output.

The current benchmark price of battery-grade lithium carbonate is 480,600, an increase of 0.21% compared with August 1; the benchmark price of lithium carbonate is 463,000, an increase of 0.43% compared with August 1. At present, the mainstream expectation in the industry is bullish, and battery-grade lithium carbonate may reach about 490,000 CNY/ton in the short term.

Urea: The entire factory was shut down, and the loss rate exceeded 70,000 tons

Under the demand of civilian use, urea production enterprises have a greater impact. At present, all urea factories in Sichuan are basically shut down, including downstream compound fertilizer factories. It is expected to affect the daily output of about 11,000 tons.
Although some non-listed companies have not announced the parking time, according to the calculation of parking for 5 days, the annual daily output of Jiuyuan urea plant in Dazhou, Sichuan is 1,350 tons, and the parking for 5 days, a total of 6,700 tons; the daily output of Sichuan Meiqing cyanamide is 1,000 tons, and the parking is 5 days. , is 5,000 tons; Chengdu Yulong Chemical has a daily output of 250 tons, parking for 5 days, is 1,250 tons; Sichuan Tianhua Co., Ltd. produces 1,750 tons a day, parking for 5 days, is 8,750 tons. After adding up, the total theoretical supply loss of urea is 71,700 tons, with an average daily loss of 14,300 tons.

Anhui

Anhui has experienced seven regional high temperature events this summer, the most during the same period in history. The air-conditioning load has exceeded 25 million kilowatts, a year-on-year increase of 35%. Hefei City, Anhui Province advocates industrial enterprises to avoid peaks and yield electricity through planned maintenance and other methods, use high-energy-consuming equipment in an orderly manner, reduce non-production and non-essential electricity consumption, and try to use electricity for production.

Epoxy resin: Electricity restriction and steam restriction, the market price is increased by 200 CNY/ton, and many companies do not offer quotations

my country's solid epoxy resin is mainly concentrated in Huangshan, Anhui. Huangshan Huizhou Park limited electricity and steam, and the factory temporarily stopped production for 3 days; the boiler in Shexian Park was overhauled, and the factory reduced negative production by the end of the month. The supply of solid epoxy resin is expected to shrink significantly during the month, so the price of solid epoxy resin is relatively high. obvious.

The benchmark price of epoxy resin was 18062.50, an increase of 2.92% compared with August 1. Huangshan solid epoxy resin market is running strongly, the mainstream is 16800-17500 CNY/ton. Compared with the previous trading day, it increased by 100 CNY/ton. At present, companies such as Baling Petrochemical, Huangshan Fifth Ring, and Huangshan Tianma do not offer quotations for solid resins. Kunshan Nanya, Yangnong Jinhu, Changchun Chemical, Nantong Xingchen and other enterprises do not offer quotations for liquid resins, and many manufacturers have reduced their production. The operating rate is around 50%.