Chemical giants collectively stop production！
OPEC+ Agreement impact on chemical companies
On July 18, the 19th ministerial meeting between OPEC and non-OPEC oil-producing countries was held in the form of video. The participating countries reached an agreement on gradually increasing production from August this year. OPEC and non-OPEC member states have reached the following consensus
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Starting from August 2021, the monthly output will be increased by 400,000 barrels/day, until the voluntary production reduction of 5.8 million barrels/day is fully restoredRead More
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Increase the production quotas of some oil-producing countries, which will take effect from 2022. From May 2022, the UAE’s new benchmark for crude oil production reduction will be 3.5 million barrels per day, an increase of 332,000 barrels per day from the previous period. The production benchmarks were increased by 150,000 barrels/day, and the production benchmarks for Saudi Arabia and Russia were increased by 500,000 barrels/dayRead More
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According to the latest plan, the UAE’s production benchmark will rise from the current 3.2 million barrels per day to 3.5 million barrels per day.
Previously, the UAE’s request was to increase the baseline to 3.84 million barrels per day.
The benchmarks of Saudi Arabia and Russia will both rise from 11 million barrels/day to 11.5 million barrels/day, while the benchmarks of Iraq and Kuwait will increase by 150,000 barrels/day to 4.8 million barrels/day and 3 million barrels/day.
- Post-meeting Trend
- Post-meeting Trend
- Post-meeting Trend
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After this meeting, crude oil production will increase substantially
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With the OPEC+ production increase, international oil prices may begin to peak
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The correction of crude oil prices will ease the pressure on domestic chemical product prices
"Collective Suspension"!
Similarly, SASOL, the only international company in the world that conducts large-scale coal liquefaction to produce synthetic fuels, has declared force majeure.
Overseas Chemical Giants
Time:
|Address: Global
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Rantic
Due to heavy rains hitting the Novara factory in Italy, causing a power outage in the factory, PA66 and its intermediate products produced by the factory, including HMD, adipic acid, nitric acid, PA66-salt, etc., all declared force majeure.
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TotalEnergies
Its EPS plant in Falluy, Belgium declared force majeure.
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Shintech
Announced force majeure in its PVC installation.
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Vinnolit
Force majeure appeared in PVC production equipment.
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VEKA
The letter to the customer stated that due to the insufficient supply of PVC raw materials in the market, the company has now declared force majeure for the product, and the company's product delivery time has been extended as a result.
- BASF
- SABIC
- Covestro
- Celanese
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The main supplier of adiponitrile (ADN) informed that BASF will not be able to provide BASF with the expected amount of adiponitrile (ADN) due to continued force majeure. In the same period, the HMD, 2PN, Ah salt (PA66 salt), Ultramid A and AC PA66 products were also declared for force majeure. BASF predicts that the force majeure may exist for a longer period of time than previously anticipated, and the supply distribution is expected to be maintained until at least August.
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The LDPE plant in Limburg, the Netherlands caused force majeure due to technical problems. It is reported that the annual production capacity of the region is 570,000 tons of LDPE and 320,000 tons of HDPE.
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The 420,000-ton/year MDI device located in Brunsbite, Germany, will be force majeure effective from now on. It is reported that the MDI device was shut down during the routine maintenance of the device during August-September. The reason for the shutdown was an unexpected failure of the production system. In addition, Covestro's annual output of 330,000 tons of MDI and other products, such as liquid caustic soda, Makroblend polycarbonate and hydrochloric acid (HCl), are still under force majeure.MORE
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Due to the surge in demand and the shortage of raw materials (such as the raw material adiponitrile for PA66), the supply of polyamide is in short supply. In addition, the continuous challenges faced by the global logistics market, especially the shipping from Asia, have severely disrupted the normal supply of goods and eventually caused delays. Delivery of finished products. Celanese said that it is impossible to avoid supply interruptions and restrict supply to customers, but will make every effort to reduce the disruption to customers' business.MORE
20+ Chinese Chemical Companies Stopped Production
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Time
Address
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Schedule
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Wanhua Chemical
The company's 1.1 million tons/year MDI plant in Yantai Industrial Park began to stop production for maintenance on July 10, and the maintenance is expected to be about 25 days.
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Daqing Petrochemical
225,000 tons/year styrene plant plans to shut down for 15 days on July 20.
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Qilu Petrochemical
The 200,000-ton/year styrene plant was originally planned to be overhauled for 45 days on August 10, but it is now advanced to August 5.
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North Huajin
A total of 177,000 tons/year of styrene plant plans to shut down for maintenance for one month on July 15.
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Gulei Petrochemical
The start-up of the 600,000 tons/year styrene plant was postponed to the end of July; the plant’s commissioning was postponed, and the output increased less than expected.
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Liaotong Chemical
Styrene plant plans to start overhaul for 35 days on July 15.
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Jingmen Yingdegases Co., Ltd.
The 500,000-ton/year methanol plant will be shut down for overhaul at 8 o'clock on July 15th. The estimated overhaul will last for 15-20 days. During the overhaul period, methanol will be sold out.
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Shandong Rongxin
The 250,000 tons/year coke oven gas methanol plant will be shut down for maintenance on July 12, and the planned period will be about 20-30 days.
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Shenhua Xilai Peak
he 300,000-ton/year coke oven gas-to-methanol plant was shut down for maintenance on June 20, with an estimated duration of one month.
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Sanfame
A set of 200,000 tons/year staple fiber plant is scheduled to be shut down for maintenance on July 20. The plant's total short fiber production capacity is 800,000 tons/year.
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Shanxi Lubao
The 100,000-ton/year caprolactam plant will be shut down for maintenance for one month on June 28 and is scheduled to restart at the end of July
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Yangmei Chemical
The 200,000-ton/year caprolactam plant will be shut down for maintenance for 40-50 days from June 15th, and it is planned to restart in early August
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Jiangsu Haili
The 200,000-ton/ton caprolactam plant has a load of approximately 50%, and it will be shut down for maintenance for one month at the end of July.
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FuHaiChuang
The 4.5 million tons PTA device load is 80%, and the two lines are expected to be inspected from the end of July to the beginning of August.
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Wanhua Chemical
Near-term Forecast
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The frequent occurrence of force majeure by large foreign factories and the recent shutdown and maintenance of product installations of many chemical companies in China have caused everyone to worry about the future trend of the chemical market. In addition, many places in northern China have encountered heavy rains recently. The State Defense Office has required 13 provinces and cities including Beijing, Tianjin, Hebei, and Shanxi to enter a state of preparation for war. Some regions require that production must be stopped during heavy rains to ensure safety. This also means that nearly 10,000 chemical companies in more than a dozen provinces, cities and regions will face suspension of production at any time, which will further promote the decline in the operating rate of domestic chemical companies and the reduction in production load.
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