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Double Raw Materials Fell, Resin Fell or Not?

ECHEMI 2021-11-15

Many market friends asked that in the past week, the ring chlorine fell by 1,600 CNY/ton, and the bisphenol A fell by 1,900 CNY/ton. The downward momentum has not been curbed, but the resin has not fallen. What is going on? When will this resin be? fall?

 

Ordinarily, the cost is low, the market demand is not strong, and the price of resin should fall.

 

However, when the price of resin follows the raw materials, it is often a pattern of rapid rise and slow fall. The raw materials are falling rapidly, but the pre-orders of various resin plants are being executed, and some may have just delivered half of them. If the price also falls with the raw materials, how to execute the unpaid orders? There are also a large number of dealers and traders who have just taken the goods but have not yet sold them, and they will fall in their hands as soon as the price drops. Besides, resin users have just purchased goods, and the products they have made have not yet been delivered to the terminal. If the market price drops, the terminal may not execute it, and the entire downstream resin will collapse. Therefore, the resin industry has always been political, and the decline is slow, so that downstream and downstream have a process of digestion. This is the rule.

 

So, why did the raw material rise immediately, why did the resin rise immediately? This rapid increase will not lose much of the downstream benefits that have been purchased, but it will help the downstream and downstream to maintain and increase the value. You know the secrets.

 

The current repeated epidemics and climatic disasters are also affecting the consumption of epoxy resin. It is already at the end of the year. Apart from some positive hopes for wind power, there is really no good news heard. Therefore, after three hot quarters, the resin factory has made a lot of money, and has already completed the annual profit target early. It is imperative to give back to the market for an appropriate downward adjustment.

 

Can price cuts stimulate consumption again? It seems difficult at present. On the one hand, the large number of orders have not been digested, and it is not realistic to have another wave of large orders. The shrinking seasonal consumption is also one of the reasons.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.

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