In 2022, with the end of the Spring Festival holiday of the Chinese New Year, China's chemical industry has once again started a countervailing price increase. In this year, factors such as the new crown epidemic and international geopolitics will be added. The price increase of China's chemical bulk products has become the main theme.
Chemical raw material prices continue to rise
In January 2022, international crude oil prices rose sharply, and the market was macro-oriented. After the holiday, the overall domestic chemical market is relatively strong, and the prices of chemical raw materials continue to rise. There were 37 rising products, 9 falling products and 4 flat products. The top 3 products that rose were butadiene, rose 70.73% about 800 RMB/ton, butyl acrylate, rose 34.78% about 1900 RMB/ton, aniline, rose 26.60 % about 750 RMB / ton.
According to incomplete statistics, the prices of dozens of chemical raw materials have risen since the beginning of 2022. In addition to Tosoh, many chemical companies such as BASF, Trinseo, Mitsui Chemicals, Toray, and Mitsubishi Chemical have announced product increases in 2022, and some have even planned to increase prices since the end of last year.
Yu Ze, a researcher at the China Academy of Economic Reform and Development of Renmin University of China, said that since 2021, chemical products have broken through the original cycle logic, driving up the prices of upstream production materials. In the global energy transition, the accelerated transformation of fossil energy into new materials has strong support for new chemical materials. Due to the time required for supply adjustment, some chemical raw materials will continue to be at a relatively high level for a period of time, and the chemical industry will gradually transform from a strong cyclical industry to an industry with certain growth potential.
Our company generally believes that from a comprehensive review, the current supply shocks encountered by enterprises are mainly reflected in three aspects. Firstly, the global supply chain obstruction caused by the epidemic, restrictions on personnel movement and trade control of related medical materials. Secondly, trade protection caused by Technology blockade, entity list, etc., have led to insufficient supply of technology and capital required by some companies. At the same time, the return of manufacturing industry promoted by the United States has also impacted the supply system. Finally, the global carbon reduction action has led to insufficient investment, tight supply, and rising prices in some high-carbon industries such as coal and oil, while global natural gas production has limited growth and the market is in short supply, causing prices to soar.
Post time: Feb-21-2022
