Titanium dioxide, epoxy and bisphenol A continue to rise

Recently, the leading titanium dioxide company Lomon Baili issued a price adjustment letter stating that starting from today (11th), the sales price of various types of titanium dioxide will be increased by 1,000 CNY/ton for domestic customers and 150 for international customers on the basis of the original price. USD/ton.

Earlier, when many titanium dioxide companies started to increase prices, some traders said that Lomon Baili would soon send a letter to increase the price. And this letter of price increase, as promised, also gave the titanium dioxide industry a 9-month continuous increase, and the cumulative price increase of nearly 4,000 CNY/ton added another fire. According to the Coatings Purchasing Network, since 2021, many chemical raw materials such as bisphenol A, resin, titanium dioxide, acetic acid, etc. have been on a rocket, and their prices have risen linearly, even breaking multi-year highs.

Epoxy resin breaks through a record high, and the downstream market begins to "rush to buy"

On the 12th, the price of epoxy resin continued to rise, liquid epoxy broke through a high of 40,000 CNY/ton, and is currently hitting 45,000 CNY/ton. The price of solid epoxy resin one-step product is 34,000 CNY/ton, and the two-step product price is 38,000 CNY/ton. The price goes straight to 40,000 CNY/ton, which is the highest value ever. It continues to hit a high of 40,000 CNY/ton, and the export price has also been reached. Reached 5000 USD/ton.
Such "notable results" are inseparable from the strong promotion of upstream raw materials. The current quotation of its main raw material bisphenol A has reached 29,500 CNY/ton. The market is widening and the supply continues to be tight. Holders have a strong attitude of reluctance to sell, and it is expected to break the 30,000 CNY/ton mark. Another raw material, epichlorohydrin, is currently quoted at RMB 14,566.67/ton, close to RMB 15,000/ton.

In addition, factors such as environmental protection of solid resins and increased export orders for liquid resins are also reasons for the high price sentiment in the market. The production of epoxy resins in Europe and the United States is expected to gradually resume after June, and domestic epoxy resin exports will continue to be maintained in the short term. U.S. President Biden announced an infrastructure construction plan of more than US$2 trillion (13 trillion yuan) in Pittsburgh, an important industrial city in the United States. Of the US$621 billion used for repairing and modernizing bridges, highways, and highways, the construction of highways and highways will increase the demand for concrete and asphalt additives, including polyethylene for curing agents. Alcohol (PEG), and other chemicals used in sealants, such as epoxy and acrylic. Whether it is the pull of domestic or foreign demand, the epoxy resin inventory is further reduced. Under the anxiety state, more and more companies have joined the queue to buy goods, and prices may be pushed up further.
Bisphenol A has set a new high in the past 10 years, and the inventory is in short supply.

Since the beginning of this year, the domestic BPA market has risen wildly. The price has risen from RMB 12,800/ton at the beginning of the year to RMB 29,416.67/ton at present, an increase of 130%, a record high in the past 10 years. The current inventory of bisphenol A industry is at a low level and the supply exceeds demand. Since the beginning of this year, the bisphenol A industry has more overhaul devices, resulting in tight market supply.

From the demand side, mainstream downstream PCs will usher in a new round of expansion in 2021, and epoxy resins will also have multiple sets of production capacity released during the year. It is expected that the price of bisphenol A will run strongly during the year. As the overseas economic recovery is expected to gradually peak, the recovery of supply will drive the prices of global priced commodities such as crude oil and non-ferrous metals to stabilize. The booming bisphenol A market has boosted the enthusiasm of manufacturers. However, since most factories have downstream supporting equipment for bisphenol A, they are basically for self-use or contract supply, and the spot export is limited, which makes the spot on the market tight. In the short term, BPA still has room for growth.

Acetic acid hit a new high in more than 10 years, with a six-month increase of over 160%
On the 12th, acetic acid was quoted at 6916.67 CNY/ton, and the price in East China rose more than 12% in a week to around 7000 CNY/ton, a six-month increase of more than 160%, a record high in more than 10 years. The accidental failure of the equipment of manufacturers in East China led to a more severe supply shortage in the Acetic acid market. The demand from downstream and traders was strong, which pushed the market to passively form a situation of short supply. The manufacturers took advantage of the trend to actively increase their offers and promote the market to rise sharply. However, due to the impact of winter storms, the shortage of supply in Europe and the United States has not yet been resolved, and the supply gap has continued to expand. At present, the shortage of spot supply in the market has intensified, coupled with the generally low stocks in the industry, enterprises are pushing up significantly.

The domestic acetic acid market is rising, the market supply is tight, and the low-price supply in the northwest hit the market. The downstream purchases at high prices are limited and on-demand, the on-site supply is tight, and the acetic acid has been operating in a short period of time. The delivery price of acetic acid enterprises in Shandong area is around 6,600-6900 CNY/ton, the current price of acetic acid in Jiangsu area is around 6,900-7,000 CNY/ton, and the price of acetic acid in Zhejiang area is 7,000-7100 CNY/ton. The actual transaction price is subject to negotiation. Downstream The construction started normally and the procurement was active. The current market supply is tight, and the market is expected to be slightly bullish in the later period.

Titanium dioxide hits a 3-year high
On the 12th, titanium dioxide was quoted at 1,091.67 CNY/ton, the price hitting a 3-year high. Recently, more than ten companies in the titanium dioxide market have sent letters to raise the price by 1,000 CNY/ton. The current supply of titanium dioxide manufacturers is tight, the downstream demand continues to be hot, and the price of raw materials is rising. The current manufacturer's price is 18800-20600 CNY/ton for rutile type, 16500-17500 CNY/ton for anatase, and 20000-21700 CNY/ton for chlorination. Data show that the price of titanium dioxide has rebounded since its low in July last year. As of the end of last year, the price increase had reached nearly 30%.

Recently, overseas epidemics have relapsed, the operating rate of enterprises has dropped, and the production of titanium dioxide on the supply side has been insufficient. Most of the titanium dioxide manufacturers' pending export orders have been scheduled until May. With strong overseas demand and the support of raw material prices, the price of titanium dioxide still has room to rise in the short term.

Adipic Acid breaks through the nearly three-year high, and the upstream and downstream work together to push up
On the 12th, adipic acid was quoted at RMB 10,683.33/ton, a three-year high since 2018. Affected by both the promotion of cost and the recovery of supply and demand, the price of adipic acid in China has begun to increase. From the perspective of market supply, large adipic acid factories temporarily overhauled, the operating rate has declined, the market supply is relatively tight, and some East China dealers reported that they could not get the supply. At present, the inventory of manufacturers is at a low level, and distributors will concentrate on replenishment in the next year. The pressure on the supply side has been released. Manufacturers' prices have been rising frequently. The relatively tight supply environment is an important reason for the increase in the price of adipic acid.

In terms of downstream demand, terminal demand is generally picking up. After the year, companies will resume work in a timely manner. Polyurethane and PA will be concentrated after 66 years. Demand is strong, especially for PA66. Large factories are out of stock and raw materials. The market has been running at a high level, and it will still bring some support to the adipic acid market in the near future.

In addition to the above raw materials, many chemical raw materials are also hitting historical highs. The reasons for the price increase are basically the same. They are all price changes caused by the serious imbalance between supply and demand and deviating from the established track. Industry insiders said that at present, many chemical raw materials are reaching unprecedented highs. There are positive fundamentals and the influence of traders' speculation. Throughout the first half of the year, the price increase of bulk commodities is unstoppable.