Recently, continued to rise for nearly a year "lithium family" product price plummeted. The average price of battery grade lithium carbonate dropped by RMB 2000 /ton, falling below RMB500,000 /ton mark. Compared with this year's highest price of RMB 504,000 /ton, it has dropped RMB 6000 /ton, and also ended the spectacular situation of a 10-fold increase in the past year. It makes people sigh that the trend has gone and the "inflection point" has arrived.
Wanhua, Lihuayi, Hualu Hengsheng and other intensive downgrades! More than 50 kinds of chemical products fell!
Industry insiders said the supply chain under the impact of the epidemic has been affected, and some auto companies are expected to suspend production in the market to reduce demand for lithium salt. The downstream spot purchase intention is extremely low, lithium products market as a whole in a state of negative decline, resulting in the recent market spot transactions turn weak. It is worth noting that both suppliers affected by the epidemic and downstream customers with reduced purchasing intentions due to suspension of production are facing a severe situation in the chemical market at present. Similar to lithium carbonate, more than 50 kinds of chemicals in the second quarter began to show a downward trend in prices. In just a few days, some chemicals fell by more than RMB 6000 /ton, a drop of nearly 20%.
The current quotation of maleic anhydride is RMB 9950 /ton, down RMB 2483.33 /ton from the beginning of the month, down 19.97%;
The current quotation of DMF is RMB 12450 /ton, down RMB 2100 /ton from the beginning of the month, down 14.43%;
The current quotation of glycine is RMB 23666.67 /ton, down RMB 3166.66 /ton from the beginning of the month, down 11.80%;
The current quotation of acrylic acid is RMB 13666.67 /ton, down RMB 1633.33 /ton from the beginning of the month, down 10.68%;
The current quotation of Propylene glycol is RMB 12933.33 /ton, down RMB 1200 /ton from the beginning of the month, down 8.49%;
The current quotation of mixed xylene is RMB 7260 /ton, down RMB 600 /ton from the beginning of the month, down 7.63%;
The current quotation of acetone is RMB 5440 /ton, down RMB 420 /ton from the beginning of the month, down 7.17%;
The current quotation of melamine is RMB 11233.33 /ton, down RMB 700 /ton from the beginning of the month, down 5.87%;
The current quotation of Calcium carbide is RMB 4200 /ton, down RMB 233.33 /ton from the beginning of the month, down 5.26%;
The current quotation of Polymerization MDI is RMB/18640 ton, down RMB 67667 /ton from the beginning of the month, down 3.50%;
The current quotation of 1, 4-butanediol is RMB 26480 /ton, down RMB 760 /ton from the beginning of the month, down 2.79%;
The current quotation of epoxy resin is RMB 25425 /ton, down RMB 450 /ton from the beginning of the month, down 1.74%;
The current quotation of yellow phosphorus is RMB 36166.67 /ton, down RMB 583.33 /ton from the beginning of the month, down 1.59%;
The current quotation of Lithium carbonate is RMB 475400 /ton, down RMB 6000 /ton from the beginning of the month, drop 1.25%.
Behind the declining chemical market, there are numerous downgrade notices issued by many chemical companies. It is understood that recently Wanhua Chemical, Sinopec, Lihuayi, Hualu Hengsheng and many other chemical companies announced product reductions, and the price per ton was generally reduced by about RMB 100.
The quotation of Lihuayi isooctanol fell by RMB 200/ton to RMB 12,500/ton.
The quotation of Hualu Hengsheng isooctanol fell by RMB200 / ton to RMB12700 / ton
The quotation of Yangzhou Shiyou phenol fell by RMB 150 /ton to RMB 10,350 /ton.
The quotation of Gaoqiao Petrochemical phenol fell by RMB 150 /ton to RMB 10350 /ton.
The quotation of Jiangsu Xinhai Petrochemical propylene fell by RMB 50 /ton to RMB8100 /ton.
The latest quotation of Shandong Haike Chemical propylene fell by RMB 100 /ton to RMB8350 /ton.
The quotation of Yanshan petrochemical acetone fell by RMB 150 /ton to implement RMB 5400 /ton.
The quotation of Tianjin Petrochemical acetone fell by RMB 150 /ton to implement RMB 5500 /ton.
The quotation of Sinopec pure benzene fell by RMB 150 /ton to RMB8450 /ton.
The quotation of Wanhua Chemical Shandong butadiene fell by RMB 600 /ton to RMB10700 /ton.
The auction floor quotation of North Huajin butadiene fell by RMB 510 /ton to RMB 9500 /ton.
The quotation of Dalian Hengli Butadiene fell by RMB 300 /ton to RMB10410 /ton.
Sinopec Central China Sales Company to Wuhan Petrochemical butadiene price reduced by RMB 300 /ton, the implementation of RMB 10700 /ton.
The price of butadiene in Sinopec South China Sales Company is reduced by RMB 300 /ton: RMB 10700 /ton for Guangzhou Petrochemical, RMB 10650 /ton for Maoming Petrochemical and RMB 10600 /ton for Zhongke Refining and Chemical.
The quotation of Taiwan Chi Mei ABS fell by RMB 500 /ton to RMB 17500 /ton.
The quotation of Shandong Haijiang ABS fell by RMB 250 /ton to RMB14100 /ton.
The quotation of Ningbo LG Yongxing ABS fell by RMB 250 /ton to RMB13100 /ton.
The quotation Jiaxing Diren PC product fell by RMB 200 /ton to RMB 20800 /ton.
Lotte advanced materials PC products quotation fell RMB 300 /ton to RMB 20200 /ton.
Shanghai Huntsman April pure MDI barreled/bulk water listing price RMB 25800 /ton, decreased by RMB 1000 /ton.
The listed price of Pure MDI of Wanhua Chemical In China is RMB 25800 /ton (RMB 1000 /ton lower than the price in March).
The supply chain is broken and supply and demand are weak, and chemicals may continue to fall.
Many people say that the rise in the chemical market has continued for nearly a year, and many industry insiders expect that the rise will continue in the first half of the year, but the rally has been muted in the second quarter, why on earth? This is closely related to a number of recent "black Swan" events.
Strong overall performance in the first quarter of 2022, domestic chemical market, constantly rising market strength of crude oil and other commodities, chemical market trading activity, although the industrial chain lower actual order follow up, the market once, but with the outbreak of the war between Russia and Ukraine, worries about energy crisis brewing, strong impetus domestic chemical market into super cycle to rise further, Chemical "inflation" is rising. In the second quarter, however, the apparent boom was bursting fast.
With the spread of COVID-19 in many places, Shanghai has implemented differentiated prevention and control management at different levels by region, including containment areas, control areas and prevention areas. There are 11,135 containment areas, involving a population of 15.01 million. Jilin and Hebei provinces have also closed down related areas recently to fight the epidemic and contain its spread.
More than a dozen regions in China have been closed to high-speed, logistics shutdown, raw material procurement and sales of goods have been affected, and several chemical subdivisions have also appeared the problem of supply chain fracture. Sealing and control at the place of shipment, sealing and control at the place of receipt, logistics shutdown, driver isolation... Various problems kept cropping up, most of China could not deliver goods, the whole chemical industry entered a state of chaos, the supply side and the demand side suffered a double blow, the chemical market pressure forward.
Due to the rupture of the supply chain, the sales of some chemical products are blocked, and the company insists on the strategy of securing orders at low prices. Even if it is a loss, it must retain customers and maintain market share, so there is a situation where prices drop again and again. Affected by the mentality of buying up and not buying down, the downstream purchase intention is low. It is expected that the short-term domestic chemical market will be weak and consolidated, and the possibility that the market trend will continue to decline cannot be ruled out.
In addition, the current peripheral industries are also changing day by day. The United States and its allies have released a negative market atmosphere on a large scale. International crude oil prices have fallen from high levels. The domestic epidemic prevention and control situation is severe. Under the influence of the tomb-sweeping day holiday and the double negative impact of cost and demand, the trading vitality of the domestic chemical market has declined.
At present, the epidemic situation in many places in China is severe, logistics and transportation are not smooth, chemical enterprises temporarily reduce production and stop production, and the phenomenon of shutdown and maintenance increases. The operating rate is even lower than 50%, which can be called "abandonment". Gradually turn into weak operation. Under the combined effect of various factors such as weak domestic demand, weakening external demand, the raging epidemic, and external tension, the chemical market may experience a downturn in the short term.
Post time: Oct-19-2022