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, etc.
9 major manufacturers have declared force majeure!
BASF: Floods in Europe damaged local oil pipelines, affecting BASF’s ethylene supply of LDPE in the Netherlands. BASF previously announced a force majeure upgrade for LDPE in the Netherlands, and recently announced that its entire PE production in Europe has been suspended. Encountered force majeure.
Covestro: The 320,000 tons/year MDI plant in Texas, USA, and the 420,000 tons/year MDI plant in Brunsbütt, Germany are both in the 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. MDI force majeure has continued since February.
DuPont: “zytel” brand PA6PA66 as well as HTN materials (PPA), Minlon (PA6.6GF) and “Rynite” brand PET are currently under force majeure.
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 (approximately until 8 late month).
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 listing for dealers is 21,000 yuan/ton, which is 500 yuan/ton higher than in July. The July settlement price is 19,800 yuan/ton for acceptance (cash minus 300, bulk water minus 500) .
Judging from the current MDI market trend, although the impact of the off-season is still there, logistics and transportation are restricted due to factors such as the epidemic, and market demand is suppressed. Some traders are actively shipping, but most are still in a wait-and-see state. Overall in August The pullback is not that big.
Downstream factories are complaining
“They dare not purchase large quantities of goods and do not dare to accept orders in large quantities. The price of raw materials changes every day. An order received today may not be received tomorrow. The prices of raw materials have changed, and downstream customers’ payment is not very timely. Our funds are very limited.”
The chemical market inventory has dropped sharply, high-end products have been blocked from arriving at the port, and it is difficult to transport a box overseas. The imbalance between demand and supply continues to be severe… This impact is gradually transmitted downwards, which will cause more and more chemical companies in the industrial chain to be in short supply.
At present, some chemical companies have closed their stocks, refused to quote, restricted sales, etc. As anxiety continues to increase, the rush to buy is gradually heating up, and the next price increase will also be a matter of course. .
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