[Focus] Chemical giants collectively raise prices, ushering in a new carnival in the chemical raw material market in December?

Some chemical products continue to rise

Acrylics and esters

Since the acrylic acid and ester market began to rise in early August, prices have reached a new high this year until the beginning of October, and the BASF explosion in mid-October has added a fire to the domestic acrylic industry. From October 17th to November 7th, the price of acrylic acid in the East China market rose rapidly from 6,660 yuan/ton to 8,150 yuan/ton, an increase of 18.6%. During the same period, the price of butyl acrylate rose from 7,900 yuan/ton to 9,000 yuan/ton, an increase of 13.9%. At the same time, the international market price of acrylic products has also risen under the impetus of manufacturers. Acrylic acid and ester manufacturers have closed their orders or rose 400-500 yuan/ton in one day, causing the market price to set a new high for the year.

Titanium dioxide

Since November 1st, domestic titanium dioxide companies have continued to raise prices, and Baili Lianlong Python has raised prices by 1,000 yuan/ton after the merger. As of November 7th, a total of 21 companies have announced price increases. In addition to the thousand yuan increase of Baili Lianlong Python, the ex-factory price increase of other manufacturers ranges from 500-800 yuan/ton. Rutile titanium dioxide has re-entered the price adjustment ranks, but the price adjustment of anatase titanium dioxide is not as fierce as the previous period. After this round of price increases, the domestic sulfuric acid rutile type negotiated price is 13300-14200 yuan/ton, and the chlorination rutile type negotiated price is mostly 14,000-15,000 yuan/ton, or even higher. The mainstream reference price of anatase titanium dioxide is 9600-11,000 yuan/ton. Unlike the previous 11 price increases, this time it is an off-season price increase and the increase is relatively large, far exceeding market expectations.

And titanium concentrate, an important raw material for titanium dioxide, rose from 510 yuan per ton at the beginning of the year to 855 yuan in November, an increase of 67%. The price of titanium concentrate has not risen continuously since it rose to more than 800 yuan in August, which is different from the trend of titanium dioxide rising continuously.

The price of chemical raw materials has risen

Entering December, chemical products have set off a price increase frenzy. Since November, many international chemical giants have issued price increase notices:

Mitsubishi Rayon Corporation

Japan's Mitsubishi Rayon Corporation (Mitsubishi Rayon) announced a 5% price increase for all Dianal resin products effective November 15, while Lucite, another world-renowned acrylic resin manufacturer under Mitsubishi Rayon Corporation, announced a 5% price increase for all company resin products effective November 15.

Wacker Chemie

The WACKER Polymers business unit announced a 15% price increase for its VINNAPAS ® brand of vinyl vinyl acetate copolymer (VAE) dispersions, effective November 1.

H.B. Fuller

H.B. Fuller announced that the price of styrene-acrylic and pure acrylic products will increase by $0.04/lb effective December 1, while the price of vinyl acetate homopolymer and copolymer products will increase by $0.03/lb over the same period.

Evonik

BASF

BASF (BASF) announced that it will increase the price of ethanolamine products in the European market from October 31st. The price of monoethanolamine, diethanolamine and triethanolamine will increase by 100 euros/ton. From November 1st, the company's polyamide products will increase by 0.05 dollars/pound in the North American market.

Eastman Chemistry

Eastman Chemical Company (Eastman) announced a price increase for some of the company's products effective November 1, including Eastman ™ brand of diisobutyl ketone (DIBK) products in North America and Latin America market price increase of $0.2/lb or $0.44/kg, and isophthalic acid products price increase of $0.02/lb or $0.04/kg, Eastoflex ™ amorphous polyolefin products and Eastman ™ brand polymer products price increase of $0.05/lb or $0.11/kg.

Oxea

Oxea announced that it will increase the price of the company's acetate products in North America, Mexico and South America from December 1st. The price of n-propyl acetate will increase by $0.03/lb in the North American market and $66/ton in the South American market. In addition, the company's propanol products will also increase in price during the same period, with the same increase and range as n-propyl acetate.

Bell North America

From December 1, 2016, to the extent permitted by contract or agreement, Zhong Hua North American joint stock company will increase the price of KaneAce ® special additives for low-priced products: Kane Ace ® MBS impact modification resin at an additional price of $0.05 per pound; Kane Ace ® processing aids at an additional price of $0.03 per pound; Kane Ace ® acrylic impact modification resin at an additional price of $0.03 per pound; Kane Ace ® K-Blend - performance modification resin at an additional price of $0.03 per pound.

Price increase for powder coating raw materials

Guangzhou Qingtian Materials

Since October 18, 2016, Guangzhou Qingtian Material Technology Co., Ltd., the price of polyester resin outdoor products has been uniformly increased by 1,500 yuan/ton on the original basis, and the price of polyester resin indoor products has been uniformly increased by 500 yuan/ton on the original basis. According to various information, the price of raw materials may continue to rise in the future, and it is not ruled out that the price of resin will continue to rise in the future. The main reason for the price adjustment is that the prices of the main raw materials of polyester resin, such as NPG and PIA, continue to rise sharply, and the cost of the company's polyester resin products has suddenly increased.

Zhanxin Company

Allnex has announced that it will increase the price of its CRYLCOAT © brand powder coating resin products in the United States from November 1, depending on the model. The price increase ranges from $0.05/lb to $0.08/lb.

Stepan

Stepan Corporation announced that the price of the company's phthalic anhydride products will increase by $0.03/lb in the North American market effective December 1, while the price of the company's RUCOTE ® powder coating resin products will increase by $0.06/lb, and the price of C.A.S.E. polyol products will also increase by $0.06/lb.

Faced with cost pressure, powder coating finished product manufacturers can't sit still and have issued price increase notices.

Axalta Huajia Coatings

The Marketing Department of Axalta Huajia Coatings Co., Ltd. announced that due to the sharp increase in the price of upstream raw materials for powder coatings, including polyester resins, curing agents (TGIC), epoxy resins, titanium dioxide and other materials, the price of existing powder coatings will be increased from November 1, 2016.

AkzoNobel

AkzoNobel's Powder Coatings Strategic Markets business group announced that it will adjust the prices of its powder coatings products sold in the Chinese market effective November 1, 2016.

Wuyi Ai Tushi Plastic Powder

Since November 1, 2016, Wuyi Ai Tushi Plastic Powder Co., Ltd., the outdoor plastic powder XP series has been uniformly increased by 1,500 yuan/ton on the original basis; the indoor plastic powder XE series has been uniformly increased by 500 yuan/ton on the original basis. According to various information: the price of raw materials may continue to rise in the future, and it is not ruled out that the price of plastic powder will continue to rise in the future.

Market analysis and questioning

In the first half of 2016, chemical raw materials remained stable, and some products improved slightly, which is also within the normal range. In the second half of the year, starting from July 12, the first batch of 8 central environmental protection inspection teams went to Inner Mongolia, Heilongjiang, Jiangsu, Jiangxi, Henan, Guangxi, Yunnan, Ningxia and other 8 provinces (regions) to carry out environmental protection inspection work. After the chemical enterprises stopped production and limited production, which promoted the price increase of chemical products. The G20 summit was held, and the production and transportation of some enterprises in East China were affected, which also pushed up the prices of some products.

In the second half of the year, some international chemical companies faced the impact of force majeure, such as Covestro's force majeure on European MDI and TDI, and Solvay hexanediamine European plants, resulting in less product supply and boosting the prices of some products. However, from the current macro environment and market format, the rise in the prices of some raw materials this year, especially the price increases promoted by some companies in the second half of the year, such as titanium dioxide and TDI, has indeed exceeded normal market behavior. TDI prices rose nearly 5 times in half a year. Some companies have begun to question whether the market has really picked up.

At the end of October, the China Plastics Processing Industry Association took the lead in standing up. In the face of the TDI skyrocketing from 10,000 yuan/ton at the beginning of the year to 50,000 yuan/ton in late October, it represented the industry to submit an anti-monopoly investigation application to the government. Although the relevant news responded that the application had been rejected (because the main body of the application should be an enterprise), it represented the user industry to raise the price of upstream raw material enterprises.

Some products in China's chemical industry are still in a situation of industrial surplus, and the country's economy is also picking up steadily. The market needs to develop rationally. In the face of overcapacity, it is necessary to increase investment in Product Research & Development to improve product quality and meet the development needs of the industry, rather than being enthusiastic about price wars. After the market returns to rationality, the soaring products will inevitably fall back to normal levels, but they have broken the hearts of users, but they cannot be recovered immediately.