Metallurgy / Chemicals / Rubber & Plastics

Recently, energy consumption double control has increased. Jiangsu, Zhejiang, Guangdong and other regions have been subject to power outages and production shutdown restrictions (related reading: emergency! Sudden power outages in major chemical provinces! Suspension notice!), in addition to a reduction of up to 90% in specific chemical production capacity, The start and production of other energy-intensive chemical industries are also restricted. It seems that listed companies in the chemical industry have not escaped the fate of suspension.

*ST Chengxing: The company's four factories have stopped production and reduced production

Yesterday (22nd), *ST Chengxing issued an evening announcement, stating that the company's four factories, namely Jiangyin Factory, Xuanwei Factory, Maitreya Factory, and Qinzhou Factory, have ceased production and reduced production. Among them, the Jiangyin plant and the Qinzhou plant need to suspend production due to equipment maintenance and the risk of preventing and controlling yellow phosphorus price fluctuations. They are expected to resume production on October 12 and September 30, respectively. Due to the impact of Yunnan Yellow Phosphorus production control, the Xuanwei and Maitreya Plants have no electricity to meet production use, and it is temporarily impossible to estimate the time to resume production.

The announcement stated that the above-mentioned production suspension and production cuts will have a significant adverse impact on the company's order fulfillment and product sales, and will have a significant adverse impact on the company's annual operating results. It is currently impossible to accurately estimate. For details, please refer to the company's subsequent disclosure of regular reports.

According to public information, the above four factories account for almost all of the company's operating income and net profit, and the above factories all have yellow phosphorus production capacity. This announcement is tantamount to dropping a bomb on the yellow phosphorus industry, telling everyone that the yellow phosphorus market will soon be out of stock. On the 22nd, the price of yellow phosphorus was 66,000 yuan/ton, a daily increase of 3,000 yuan/ton, and a monthly increase of 38,000 yuan/ton, an increase of 135%.

At present, many companies such as Guizhou Qingli Tianmeng Chemical Industry, Sichuan Mabian Longtai, Yunnan Pingbian, Yunnan Huofa Phosphating and other companies are temporarily not quoting, and mainly supply pre-orders. According to industry insiders, phosphorus chemical production companies are mainly located in Yunnan, Guichuan, Hubei and other provinces. The energy consumption of these provinces is not up to the standard. It is not ruled out that subsequent provinces will be restricted in electricity and production. Yellow phosphorus and its downstream phosphoric acid industry chain will be favored. Prices are expected to continue to rise.

Hongbaoli: Taixing Chemical Company, a wholly-owned subsidiary, began to stop production in an orderly manner

Hongbaoli issued an announcement on the noon of September 22 that the company’s wholly-owned subsidiary Taixing Chemical Co., Ltd. has implemented a shutdown and production limit in accordance with the regional "dual control of energy consumption" requirements, propylene oxide (PO) device, and dicumyl peroxide DCP1 #The device starts to stop in an orderly manner. Hongbaoli said that given that the specific time for the resumption of production of PO devices and DCP1# devices has not yet been determined, the specific impact of the temporary shutdown on the company's performance is still unpredictable.

Taixing Chemical Company is the production base of propylene oxide (PO) and dicumyl peroxide (DCP) of Hongbaoli. The annual production capacity of propylene oxide is 100,000 tons, and the annual production capacity of DCP1# device is 12,000 tons.

Hongbaoli has publicly stated that some of the company's propylene oxide is sold out, and the propylene oxide produced by the propylene oxide project is insufficient for self-use, and some of it needs to be sourced. The prices of propylene oxide and polyether fluctuated widely in the third quarter of this year and remained relatively high.

Propylene oxide is currently quoted at RMB 17,775/ton, an increase of RMB 1,700/ton within the month, an increase of 11%. With the impact of the "dual control" policy, manufacturers have reduced the load or stopped to varying degrees, the overall market supply has shrunk, and market transactions have improved. At present, propylene oxide manufacturers have shipped smoothly and prices have risen. During the Mid-Autumn Festival holiday, the domestic propylene oxide market continued to rise, and it is expected to continue to rise in the future.

Chenhua Co., Ltd.: limited power and production restrictions of its wholly-owned subsidiary affect all production lines temporarily suspended

Chenhua announced in the afternoon on September 22 that recently, due to the tight power supply in Jiangsu, the company's wholly-owned subsidiary Huai'an Chenhua was forced to temporarily suspend all production lines.

Huai’an Chenhua actively responded to the government’s demand for electricity and production restrictions. The production devices involved in the temporary shutdown were polyether production equipment (35,900 tons/year) and amino-terminated polyether (polyetheramine) production equipment (23,000 tons/year). , Of which: 5 million tons/year are fund-raising projects), flame retardant production equipment (20,000 tons/year), alkyl glycoside production devices (20,000 tons/year, of which: 15,000 tons/year are fund-raising projects ). Huai’an Chenhua’s shutdown equipment includes flame retardants and polyetheramine, which is one of the key raw materials for wind power, and these two products are also important varieties of Chenhua.

According to industry insiders, the suspension of production of the chemicals involved in the subsidiary will have a certain impact on the market supply of the corresponding products if the products are mainly exported, especially the current market prices of products such as flame retardants are relatively high; if the products are for personal use Mainly, the company will switch to outsourcing products for product production needs, which will increase the company's production costs and increase market demand.

According to public information, the supply of polyetheramine products in the first half of the year continued to fall short of demand. Domestically, it was affected by the rush to install wind power in the first half of the year; abroad, affected by the epidemic and disaster, the operating rate of foreign competitors was low, and global crude oil prices continued to rise. , The increase in shale oil and gas production has led to a shortage of polyetheramines. Now that the production capacity of Chenhua's polyetheramine and other products is limited, it will play a boosting role in the market.

At present, there are only less than 4 months before the end of the year. Many areas with substandard energy intensity can only complete the assessment if they vigorously attack and remediate. It is expected that more listed companies in the chemical industry will announce the suspension of production in the near future. In the face of the "big test" of dual control of energy consumption, any industry must make concessions for it. As leading companies suspend production and reduce production, and hundreds of thousands of tons of production capacity are blocked, the production capacity of the chemical industry will shrink sharply, and the supply imbalance will be worsened. In the future, there will be more and more chemicals that are in short supply and rising prices. At that time, the price is no longer important, and it is the real king to be able to buy the goods.