Bisphenol A Rose For Two Consecutive Years! Wanhua Takes The Lead, And Chemical Raw Materials All Fall! The Paint Has Risen By As Much As 30%!

Bisphenol A achieves two consecutive rises

On November 16th, in the absence of major benefits, BPA strongly pulled up 1,000 CNY/ton to around 17,500 CNY/ton. At present, the two downstream bisphenol A epoxy resin plants have relatively stable operating load, and the operating rate of PC has increased slightly. However, with the end of the maintenance period of several major bisphenol A plants, the overall operating rate of bisphenol A has gradually recovered to a relatively high level. From the perspective of supply and demand, the bisphenol A market is currently hardly positive.

On the morning of November 17, the bisphenol A market continued its rising trend yesterday, with the price being raised by about 500 yuan from yesterday. The reference price in the East China market was 17500-18000 CNY/ton: Nanya Ningbo quoted 18000 CNY/ton, and Changchun Chemical's quoted price increased by 200 yuan. To 17,700 CNY/ton, Sinopec Mitsui raised 100 yuan to 17,600 CNY/ton, and Nantong Xingchen’s quotation was implemented at 17,700 CNY/ton.

The current market is in a period of chaos, the downstream does not buy much, the holders are weak, and the staged just-needed purchases have caused the price of bisphenol A to fluctuate continuously. At the beginning of November, the price of bisphenol A also rose to around 18,000 CNY/ton, and then fell again. In this round of rising prices, whether it will still be hit by Zhejiang Petrochemical’s auction has become the key.

The price of chemical raw materials dives collectively

On November 15, Wanhua Chemical released the latest quotation, in which the prices of chemical products such as neopentyl glycol, propylene oxide, methanol, and n-Butanol all fell.

The price of Wanhua Chemical's propylene oxide fell by RMB 900/ton to RMB 16,000/ton from the beginning of last week;

The price of methanol dropped by RMB 200/ton to RMB 2,700/ton from the beginning of last week;

The price of n-butanol in North China dropped by RMB 500/ton to RMB 9,800/ton from the beginning of last week;

The price of neopentyl glycol in North China dropped by RMB 800/ton to RMB 18,400/ton from the beginning of last week...

And compared with the quotation at the beginning of the month, the propylene oxide quotation fell by 1,000 CNY/ton, and the Acrylic Acid quotation was lowered by 2,000 CNY/ton, which surprised many people.

The price dropped by 3,500 CNY/ton, and the price of more than a dozen chemicals dropped

As a leading company in the chemical industry, the price drop of Wanhua Chemical has undoubtedly played a vane and pilot role for companies in the industry.

It is understood that the recent decline in prices in the chemical industry and the decline in the market are not uncommon. The prices of epoxy resin and polyester resin industry chains, as well as butadiene, TGIC and other chemical products have all declined, and the intensity is relatively large, generally at 1,000 yuan. /Ton, the refrigerant R134a has dropped by 3,500 CNY/ton.

In terms of the polyester resin industry chain, neopentyl glycol was quoted at RMB 19,000/ton, down RMB 500/ton from last week. Shanghai Qihua Jihua’s quotation fell 500 CNY/ton; Shanghai Yongcai South Korea’s LG quotation fell 500 CNY/ton. The quotation of neopentyl glycol upstream isobutyraldehyde was 13,500 CNY/ton, down 3,300 CNY/ton from last week's price, and Lihuayi’s quotation fell 2,300 CNY/ton; the quotation of Liaocheng Rianze fell 3800 CNY/ton; the quotation of Shandong Zhenkun dropped 3800 CNY/ton. 

The lower prices in the industry chain are mainly due to the general market conditions of downstream coating companies and weak purchasing enthusiasm. It is expected that the polyester resin industry chain will continue to decline slightly in the short term.

In the epoxy resin industry chain, the prices of both raw materials have fallen. Epichlorohydrin was quoted at RMB 17,666/ton, down by RMB 1,315/ton from the previous week, and the price of bisphenol A was RMB 16,350/ton, down by RMB 1,599/ton from the previous week. A petrochemical company in Eastern China bid 15,500 CNY/ton, the market offer fell sharply, and the intention to offer is around 16,000 CNY/ton. There may still be room for real orders, which is also an important reason for the recent low price of epoxy resin.

The refrigerant R134a was quoted at 45,000 CNY/ton, down 3,500 CNY/ton from the previous week.

Propylene glycol was quoted at RMB 19,800/ton, down RMB 1,825/ton from the previous week.

Acrylic acid was quoted at RMB 14,666/ton, down RMB 1,882/ton from the previous week.

Maleic anhydride was quoted at RMB 13,350/ton, down RMB 1,699/ton from the previous week.

Isooctyl acrylate was quoted at RMB 18,075/ton, down RMB 1,625/ton from the previous week.

Butadiene was quoted at 6,981 CNY/ton, down 1,519 CNY/ton from the previous week.

TGIC quoted 59 yuan/kg, down 1 yuan/kg (1,000 CNY/ton) from the previous week.

The MDI price was RMB 19,800/ton, down by RMB 900/ton from the previous week.

The price of polyethylene glycol was 10,900 CNY/ton, down 800 CNY/ton from the previous week.

Ethyl acetate was quoted at RMB 9,150/ton, down RMB 750/ton from the previous week.

Propylene was quoted at RMB 7,925/ton, down RMB 575/ton from the previous week.

The price of Butyl Acetate was 11091 CNY/ton, down 507 CNY/ton from the previous week.

Butyl acrylate was quoted at RMB 17,800/ton, down RMB 500/ton from the previous week.

Dimethyl carbonate was quoted at RMB 13,000/ton, down RMB 400/ton from the previous week.

TMP quoted at RMB 30,300/ton, down RMB 400/ton from the previous week.

MMA quoted at 13,300 CNY/ton, down 200 CNY/ton from the previous week.

Some chemical raw materials fall into the dilemma of "weak supply and demand"

Regarding the decline in the price of more than a dozen chemical products, industry insiders said that this is a signal that the price of the chemical industry has reached the top and has begun to "decline", and it also means that the chemical industry has entered the dilemma of "weak supply and demand". 

Starting from the middle of this year, driven by factors such as rising costs, dual control of energy consumption and power shortages leading to supply constraints, the chemical product price index has continued to rise to a new high in the past decade, and most chemical product prices have reached historical highs or even new highs.

However, since the second half of the fourth quarter, the prices of energy products represented by coal and natural gas have fallen sharply, the impact of supply-side power and production restrictions has weakened, and production capacity has been slowly expanding and has become more and more intense. The upstream cost pressure has eased with the decline in coal prices, and the price index of chemical products has been reduced. Rush up and fall back.

As of November 6, 2021, China's chemical product price index was 5768 points, down 10.1% from the year's high, and the spot price of chemical products is also gradually falling.

In addition, the downstream resistance to the high prices of chemical products has gradually fermented, demand has fallen, and inventories have continued to accumulate. The current chemical industry is in the seasonal destocking stage.

Due to the recent poor sales of gasoline and diesel and the impact of the epidemic, the return of vehicles is limited, the freight rate has risen, and the winter weather is extremely cold, and the transportation is not smooth.

Under the combined effect of the simultaneous collapse of the cost side and the demand side, prices may be suppressed and continuously plummeted by the end of the year due to the "weakness of supply and demand".