Breaking news! Nearly 100 chemical giants have stopped production collectively. Is the price increase of raw materials coming again?

Since the beginning of the year, tires, chemicals, steel, fertilizers, etc. have all seen a collective increase in prices, which has had a huge impact on companies and severely squeezed product profits ... The price increase of raw materials is out of control.

Nearly 100 chemical companies have stopped production, adding insult to injury!

The last round of price increases has caused great suffering to many companies, among which the supply and demand of the chemical market is seriously unbalanced. Recently, the news that nearly 100 leading chemical companies have collectively stopped production has caused a strong impact on the chemical market, and a new round of price increases may follow.

Nearly 100 chemical companies that announced the suspension of production this time involved chemical products such as PE, bisphenol A, PC, and PP . It is understood that among the companies that suspended production, some companies had some equipment for maintenance, and some companies had all stopped for maintenance, and the maintenance time was roughly 10-50 days. At the same time, some companies directly stated that "there is not much remaining inventory, and the supply may be cut off"!

The maintenance time of polyethylene PE large factories is about 7-40 days; the shutdown time of bisphenol A is about 45 days; the shutdown time of butadiene enterprises is up to 40 days; the shutdown time of styrene is about 50 days...

Large factories have stopped for maintenance, production has plummeted, and the supply of raw materials has become even more difficult. Panic has begun to ferment ... In addition, some giants in the same industry have already increased prices. From this point of view, the start of a new round of price increases seems to be a foregone conclusion.

Demand continues to increase, and a new round of price increases may come

In fact, the new round of price increases is not a natural trend, but a general trend. It has to be said that inflation expectations are fully reflected in the price increases of commodities, and it is even called "the fastest commodity price increase since the 21st century."

At first, the price increase of raw materials did not cause much panic. Many factories had stockpiled enough raw materials before the Spring Festival to support them for a while, so most factories were still waiting and waiting for prices to drop before making a move. After this situation continued for a period of time, many upstream companies had a backlog of inventory and had to reduce prices.

But for now, there is still a great possibility that chemical raw materials will face a new round of price increases. The reason for this is inseparable from demand and economic growth.

First, the global economy is recovering rapidly, and demand for commodities such as chemicals is increasing ; second, the US $1.9 trillion stimulus plan has been passed and inflation has exceeded expectations, which will most likely expand demand through financial channels .

As March begins , most companies have resumed operations, and manufacturing demand will further increase. Supply and demand will become the biggest problem, and a new round of price increases is not far away ...

The upcoming wave of price increases is bound to have a huge impact on the market and enterprises again. Some small companies with low profits may be forced to exit the industry, and only the strong ones will survive!

Raw materials

Chemicals

Price increase