According to market news, nine major manufacturers have recently declared force majeure and cut production by half!
The market is out of stock and supply sentiment is becoming tense.
BASF, Covestro, Dow and other 9 major manufacturers declared force majeure!
BASF: European floods damaged local oil pipelines, affecting BASF’s ethylene supply of LDPE in the Netherlands. BASF previously announced an upgrade of force majeure for LDPE in the Netherlands and recently announced that it has The entire PE production in the region encountered force majeure.
Covestro: 320,000 tons/year MDI device in Texas, USA, and 420,000 tons/year MDI in Brunsbütt, Germany The devices are all in a force majeure stage.
Dow: The supply of the 340,000 tons/year MDI device in Texas, USA, was interrupted due to an unexpected mechanical failure at the raw material supplier, and MDI was force majeure. It has continued since February.
DuPont: “zytel” brand PA6 PA66 as well as HTN materials (PPA), Minlon (PA6.6GF) and “Rynite” brand PET are currently under force majeure middle.
Yanbu National Petrochemical Company: The PP and LLDPE factories in Saudi Arabia unexpectedly stopped production, and there is no clear plan to resume production.
Gazprom: The company’s low-density polyethylene (LDPE) and high-density polyethylene (HDPE) units will be repaired and the shutdown will last for 30 days days (approximately until late August).
Vinnolit: There are problems with the supply of raw materials to the factory near Cologne, which affects rail connections and part of the infrastructure for the production of PVC and VCM (vinyl chloride).
AnQore: The acrylonitrile factory in Geleen, the Netherlands, encountered force majeure and its output was reduced by about half.
Domestic manufacturers have raised prices one after another
Domestic manufacturers have also raised MDI prices in August !
The fixed price in Wanhua Chemical Distribution Market in August was 20,300 yuan/ton, which was stable compared with the previous time. The direct supply market was listed at 20,600 yuan/ton in August, a month-on-month increase of 1,000 yuan/ton, and settled at 19,600 yuan/ton in July (barrel acceptance).
The listed price of aggregated MDI in the Shanghai BASF distribution market in August 2021 is 21,000 yuan/ton, which is 1,000 yuan/ton higher than that in July; the settlement price in July is 19,800 yuan / ton acceptance price (cash minus 100).
Shanghai Huntsman’s August 2021 aggregate MDI will be listed on dealers at 21,000 yuan/ton, an increase of 500 yuan/ton from July, and the July settlement price 19,800 yuan/ton for acceptance (300 yuan off for cash, 500 yuan off for bulk water).
Judging from the current MDI market trend, although the impact of the off-season is still there, due to the epidemic and other factors, logistics and transportation are restricted, market demand is suppressed, and some traders are actively shipments, but most are still in a wait-and-see state, and the overall correction in August was not large.
Downstream factories are complaining
“They dare not purchase large quantities of goods and do not dare to accept large quantities of orders. The price of raw materials changes every day. If you place an order today, the price of the raw materials may change tomorrow. In addition, the payment from downstream customers is not very timely, so our funds are very limited.”
Market inventories have plummeted, high-end products have been blocked from arriving at ports, it is difficult to find a box for overseas transportation, and the imbalance between supply and demand continues to be severe… This impact will be transmitted downwards step by step, causing more and more factories in the industrial chain to be in short supply.
At present, some factories have been closed without quoting, restricted sales, etc., and anxiety continues to rise. , the rush to buy is gradually heating up, and the next price increase will be a matter of course.
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