The hottest snowstorm triggered a new wave of pric

2022-08-24
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Blizzard triggered a new wave of price rise of petrochemical products in Asia

a new wave of price rise of petrochemical products in Asia

blizzard in the north of the mainland and South Korea affected transportation. Coupled with the rise in crude oil prices, Asian petrochemical products from upstream ethylene to downstream derivatives are setting a new wave of rise, and the ethylene glycol rate hit a new high in recent 16 months, with an increase of 15% within the week. The petrochemical industry is optimistic about the heat of market demand in the first half of the year, and is expected to return to the prosperity before the financial tsunami, with clear and strict product labeling requirements

however, the rise of petrochemical basic raw materials and derivatives will push up the costs of terminal industries such as home appliances, tires, plastic products and 3C electronics manufacturers in the process of continuous exploration and development, and the profit space will be greatly compressed

market participants believe that the rise in the prices of various petrochemical products will be beneficial to the first quarter revenue and profit performance of relevant manufacturers, which is better than that in the fourth quarter of last year. The overall sharp rise of plasticizing and other stocks on the 6th is only the beginning

the head of CNPC said that South Korea and the northern part of the mainland are currently experiencing the biggest snowstorm in 60 or 70 years, which has significantly hindered the two places' overseas sea and land transportation; Take Incheon port, the primary export portal of petrochemical products in South Korea, as an example. Ships preparing to deliver goods at Kaohsiung Port generally reported delays of three or four days in the short and one week in the long

as for its sales to the mainland, the same is true in central and eastern China. If the heavy snow continues, saigang plastic granulator is also a major energy consumer in China, which will accelerate the deterioration of its export impact

secondly, on the mainland, Dushanzi petrochemical, which just opened in Xinjiang last year with an annual output of 1million tons of ethylene, also reported that the butadiene and other raw materials produced could not be transported out due to the road closure. Taixiang confirmed the matter, saying that it had purchased materials from the same industry, but it had not been delivered so far, which was obviously affected by blizzard

Formosa Plastics also pointed out that petrochemical products from Northeast China and other places on the mainland could not be transported to central and eastern China as scheduled, which has caused a gap in the supply of the local market. If the heavy snow time is prolonged, the downstream end-users are bound to rush for more materials. Under this expectation psychology, it is stimulating the rapid rise of relevant derivatives prices

take ethylene glycol as an example. Before, it was shut down for one month due to the failure of a production line with an annual output of 770000 tons in SABIC in the Middle East, which has made the market ready to stir up. Now it is the first to rise sharply, without any analysis and testing. At the end of the year, it was about $860 per ton, and the latest price rose to $1000 on the 6th, with a weekly increase of 15%; Styrene (SM) also rose to US $1330 per ton, with a weekly increase of 6.4%

as for polyethylene (PE), the three major products have also increased by about $40 to $60 per ton recently; Low density polyethylene (LDPE), the main raw material of agricultural film, rose the most sharply, standing at US $1500 per ton

insiders said that this Blizzard has warmed up the trading of plasticizing raw materials in advance and is expected to continue until after the annual festival. Especially from March, a total of 22 light cracking plants in Japan and South Korea will be closed one after another, and the supply of materials will be sharply reduced. If the 800000 ton ethylene plant invested by shell in Singapore and the new light oil cracking plants such as Tianjin Petrochemical in the mainland cannot be opened on schedule, the market is bound to rise

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