The China Chemical Market Has Seen Soaring Prices for Raw Materials

Europe's energy crisis, Europe's natural gas-based chemical plants are due to the high cost of a significant reduction in production, affecting TDI, propylene oxide, titanium dioxide, PVC, acrylic acid, carbon black, silicones and other basic chemical raw materials. Recent price increase letters from related companies have emerged in large numbers.

TDI: the rate of increase hit a four-year high
TDI has achieved five consecutive increases this month, from 15,000 RMB/ton in early August to 24,000 RMB/ton, an increase of more than 60%, a new high of four years! With the major TDI factories at home and abroad are parking, the start-up rate enters the lowest in the year, TDI still has the opportunity to rise. As of now, Shanghai BASF raised TDI by 3000 RMB/ton in October, and the spot price of TDI in China has exceeded 24000 RMB/ton.

MDI: up RMB 2,000 per ton
MDI production costs rose with the energy upgrade, and now Dow announced that the European MDI, polyether and combination materials have been raised by 200 Euros/ton (equivalent to RMB1368/ton) since September, and Wanhua announced that polymerized MDI in China has been raised by 2300 RMB/ton and pure MDI has been raised by 2000 RMB/ton since October.

Titanium dioxide: up by RMB2,000
The energy crisis in Europe has affected the production of Chinese titanium dioxide industry in the fourth quarter. At present, CITIC Titanium and Tianyuan shares have sent letters announcing price increases, Chinese sales up 200-2000 RMB / ton, foreign sales up 100-150 US RMB / ton, detailed information on price increases are as follows.

Epichlorohydrin: six months has risen more than 4,000 CNY/ton

Europe cut production, China's propylene oxide start-up rate fell to 65%, reaching a calendar year low. Recently, many propylene oxide plants entered the autumn and winter maintenance, market supply reduced, propylene oxide from 8000 CNY/ton in early August to 10200 CNY/ton, up even 30%, the cumulative increase of more than 4000 CNY/ton. It is expected that with the tense energy situation in Europe and the increase of production cost in China, propylene oxide will mainly run at a high level.

The shortage of direct energy such as coal, oil and natural gas has led to the rising comprehensive costs of logistics and production. Europe as the main source of a large number of chemicals, its "shutdown" also brought a wide range of impact on the global chemical industry.

In September and October, the chemical industry rose significantly. 67% of chemicals were in an upward trend, and only 33% were down. Combined with the recent autumn and winter maintenance in China, Europe and other places due to high energy prices to reduce production, many giants have released price increases in advance, is expected to usher in the fourth quarter of the chemical market is really high season.

China's high-end chemical raw materials are still mainly imported, the European shutdown increased the difficulty of importing raw materials in China, but also increased the cost of imported high-end raw materials in China, but also gave Chinese chemical companies the opportunity to break through. If the European energy crisis is not resolved, part of the European chemical industry may withdraw from the market for a long time, which is good for Chinese chemical leaders to seize their original market share, and the global competitiveness and profitability of the Chinese chemical industry is expected to be further enhanced.