Metallurgy / Chemicals / Rubber & Plastics

According to a report from Reuters on July 3, in the early morning of the 2nd local time, Petro Mexico was located in the western waters of the Yucatan Peninsula and had a gas leak from an underwater pipeline connected to a drilling platform. A raging fire ignited at sea. The flame was huge, like a “fire eye”. "The fire has now been extinguished.

The report also said that according to sources, the fire started with the company's underwater pipeline connected to the drilling platform. The company said that a gas leak occurred at around 5:15 am local time and a fire followed. According to the company, it took more than five hours to extinguish the spark. At 10:30 on the 2nd local time, the fire was completely extinguished.

Sudden gas leakage by international oil companies has added uncertainty to the plasticization market! In addition, major international manufacturers suddenly announced force majeure to stop production + leading companies continue to increase, it is expected that the market outlook may be difficult to decline!

Recently, the main supplier of BASF’s adiponitrile (ADN) informed that BASF’s force majeure continues and will not be able to provide BASF with the expected amount of adiponitrile (ADN). In the same period, the HMD, 2PN, Ah salt (PA66 salt), Ultramid A and AC PA66 products were also declared for force majeure.

BASF predicts that the force majeure may exist for a longer period of time than previously anticipated, and the supply distribution is expected to be maintained until at least August.

In addition, on July 2, Covestro issued a letter announcing that its 420,000-ton/year MDI device in Brunsbite, Germany, will be force majeure effective from now.

It is reported that the MDI device was shut down during the routine maintenance of the device during August-September. The reason for the shutdown was an unexpected failure of the production system. It is not yet certain how long this situation will continue, but it is expected that it will cause a greater degree of delay in the supply of all MDI products.

In addition, it is learned from overseas markets that Covestro's annual output of 330,000 tons of MDI and other products, such as liquid caustic soda, Makroblend polycarbonate and hydrochloric acid (HCl), are still under force majeure. It is reported that due to the local cold wave in February this year, the supply of chemical raw materials and other operational problems in the Gulf of Mexico in Texas and Louisiana have not yet fully returned to normal.

The increase in crude oil prices and the suspension of production for maintenance have caused downstream companies to suffer miserably, and the price increase of leading raw material companies has made the plastics industry even worse. Let's take a look with the editor below to see which raw materials have increased in price!

PVDF soared by 200%, and downstream coating companies soared prices!

Recently, many fluorocarbon coating companies have issued price adjustment notices. It is said that the price of key raw material PVDF has risen sharply, and the market shortage is extremely serious, which has led to rising product costs. Due to cost pressure, the price had to be raised! PPG industrial coatings: PVDF resin upstream raw material prices have risen by more than 200%; raw materials in the coatings industry are in short supply, orders have surged, production capacity is severely insufficient, and the overall market is stagnant. Decided to implement the monthly quotation method and update the price once a month until PVDF resumes to standardize the market! This month's price is a 30% increase from the original price, and it will take effect on July 1st!

Dow raises all oxygenated solvent prices

On June 30, Dow issued a price adjustment notice, deciding to increase the price of all grades and specifications of oxygenated solvents from July 15 to a maximum of US$10/lb (about 1419 yuan/ton).

Clariant additives increase up to 25%

On July 1, Clariant, the world's leading additive manufacturer, announced that it would increase the price of its additives, with a maximum increase of 25% and effective immediately. The price adjustment will apply to all wax additives and high-performance polymers worldwide. Halogen-free flame retardants, stabilizers and other high-performance additives.

Editor's message:

Although there are still many variables that affect the trend of crude oil prices, we have to pay attention to the fact that energy costs will support commodity prices under the current high crude oil price stage, which will trigger a series of price transmissions in the industry chain. Coupled with the sudden announcement of a force majeure suspension of production by major plasticizers, producers need to start planning early and be alert to the rebound in international crude oil prices that will "dry" the cost of the plasticization industry.