Nearly 100 chemical giants “united” to stop production!Price hikes may last for another 3-6 months!

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One wave does not level off, another rise!

Nearly 100 leading chemical enterprises “united” stopped production!This imbalance between supply and demand of the chemical market, is worse! A new round of price rises may start!

It is understood that at present, there are nearly 100 chemical enterprises are doing maintenance or planning this year’s maintenance, involving Soda Ash, Sodium Bicarbonate, Sodium Metabisulphite, Bisphenol A, PVC, Barium salt, Sodium Hydrosulfite, Calcium Chloride industry chain and many other chemicals.

Some of these enterprises have partial equipment maintenance, and some have full stop maintenance, and the cycle is generally long, basically between 10-50 days.Some enterprises directly announced that is about to break for! The remaining stock is not much, get ready!

The upstream and downstream game, who can not bear first?

At present, due to the increased overhaul of major factories, the supply of raw materials may be more tight, and the fact that chemical giants such as BASF, Dow, Tenot and Komu have been “first to raise prices” in April, a new round of price increases seems inevitable.

The rise is also part of a broader trend, with central banks around the world easing inflation expectations first and foremost through higher commodity prices.”This is the fastest commodity rally since the 21st century,” said Tao Chuan, chief macro analyst at Soochow Securities on March 14. 

At present, the chemical market continues to rise there is still support, the rising tide of raw materials may continue for 3-6 months!Especially affected by the price of soda ash, baking soda, sodium metabisulfite sodium sulfite, sodium hydrosulfite, there is a large increase space.

First, the World Bank predicts that the global economy will grow by 4% in 2021.Global economic recovery prospects are more optimistic, the demand for chemicals and other commodities is strong.The recovery of economic growth and the active replenishment of inventories by enterprises will increase the demand for bulk commodities from the real economy channel and provide support for their price rise.

Second, in the short term, countries around the world have not completely withdrawn the monetary policy plan of quantitative easing. The Biden administration’s active stimulus plan of $1.9 trillion has also been formally implemented. Inflation has exceeded expectations, which further expanded from financial channels to the demand for commodities.


Post time: Mar-30-2021