After full liberalization, the social economy has risen from the previous demon of tension back to a state of stability. The raw materials, which have been swollen due to the epidemic, are also gradually cooling down. Among them, and the automotive industry related coatings, batteries and related to the automotive industry is significantly reduced.
In 2022, due to the development of the automobile industry and the shortage of raw materials, lithium carbonate reached a peak of 600,000 yuan/ton within a month! Since November 2022, lithium carbonate has been on a downward trend, which continues to this day. According to Guanghua Jun monitoring, as of March 8, industrial grade lithium carbonate fell by 28.65%, down as much as 140,000 yuan/ton!
Carbonation domestic mixed price 2022-12-09-2023-03-09
Grade: Industrial grade
It is expected that with the significant decline in downstream new-energy vehicle sales, the demand for lithium batteries and lithium carbonate raw material demand, the price still has a downward space.
In addition, as an important material of the automotive industry chain, coating, also due to poor car sales face price challenges. China is the world’s automotive paint production and sales of the most concentrated region, accounting for 25% of the global, far more than the United States and European regional markets.
Coatings upstream including resins, raw materials, solvents, additives, etc., the hot raw materials such as epoxy resin, polyurethane and other raw materials showed a decline, including epoxy resin in months down 1233 yuan/ton, a decline of 7.4%. According to incomplete statistics, the scale of epoxy resin projects currently under construction is up to more than 4 million tons/year, with a total capacity of more than 6 million tons/year. However, the news of delayed production gradually appears in the market recently, and it is expected that the epoxy resin market is still mainly weak.
Lack of demand, delays in production and price increases are false?
The two popular materials that dominate the list for a long time are cooling down, and the prices of large consumer products such as automobiles and houses are falling. It is expected that the terminal consumer market will gradually decline in the short term. In addition, the domestic consumer market has changed, the state has implemented policies such as green development and industrial structure transformation and upgrading, intensified environmental protection and safety supervision, limited production, delayed production, and in the short term, the market has downward volatility risks. Need to pay attention to the implementation of official price stabilization measures, it is expected that the pace of price increases will slow down.
Post time: Mar-13-2023