notify! Nearly 100 chemical giants have suspended production! Out of stock comes at any time

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Recently, SABIC issued a letter announcing that due to the imbalance between supply and demand, the prices of some products in North America will be increased starting from May 17.: LEXAN? (PC) resin rose by US$0.75/kg (approximately 4873.6 yuan/ton). CYCOLOY? (ABS) resin rose by US$0.75/kg (approximately 4873.6 yuan/ton). VALOX? (PBT) flame retardant resin rose by US$0.75/kg (approximately 4873.6 yuan/ton). XENOY? (PC/PET) resin rose by US$0.75/kg (approximately 4873.6 yuan/ton). XYLEX? (PC/polyester alloy) resin increased by US$2.5/kg (approximately 16245.3 yuan/ton). At the same time, BASF issued three notices in a row declaring force majeure. On the 21st, BASF stated that it received a force majeure notice from its raw material supplier on Monday, and that the supply of raw materials such as adiponitrile (ADN), hexamethylene diamine (HMD), and AH-salt will be reduced. This directly affects the supply of BASF PA66 products (Ultramid? A and Ultramid? C, Capron? PA66). Therefore, BASF declares force majeure on all PA66-based products, effective immediately. At this stage, the duration of force majeure cannot be predicted. On the 19th, BASF announced that its European companies have recently declared a force majeure declaration on some key raw materials, resulting in a shortage of raw materials. The force majeure of PBT/ULTRADUR? polymers and compounds will take effect immediately. On the 19th, BASF announced that due to force majeure in the supply of raw materials such as adiponitrile (ADN), HMD, 2PN, and AH salt, the time for resumption of supply is uncertain. Therefore, BASF announced that it will declare force majeure on the supply of Ultramid? A, Ultramid? AC polymers and other products starting from the date of the announcement. DuPont issues "Supplementary Force Majeure Notice Regarding Crastin PBT Products"”: Since INEOS, a major supplier of purified terephthalic acid (PTA), one of the key raw materials required to manufacture Crastin PBT polymer, declared force majeure on March 2, 2021, the future supply time has not been determined so far. DuPont's German PBT production plant closed on April 15, 2021, and will remain closed until sufficient raw materials are available. DuPont said that currently, the severe shortage will last until June 2021. Most people were surprised when major chemical manufacturers raised prices by 16,245.3 yuan/ton due to the imbalance between supply and demand. According to the Paint Purchasing Network, following the "skyrocketing surge" in the chemical market in the first quarter, the key word for the chemical market in the second quarter became "tight supply and rising prices." The imbalance between supply and demand mentioned by SABIC is also prevalent in the domestic market. Whether it is the company's voluntary shutdown for maintenance, the forced "customs reform and relocation", or the recent tightening of environmental protection inspections and local inspections, the chemical industry, which is already tight in supply and in short supply, has pushed the chemical industry one step further towards the "abyss". Nearly a hundred chemical companies will be shut down for maintenance for up to 95 days. According to public information, petrochemical plants have entered a period of intensive maintenance from April to May, with operating rates continuing to decline and manufacturers’ inventories limited. Last year due to the epidemic, most companies rushed to work overtime in the second half of the year to produce, and some companies postponed equipment maintenance until 2021. Therefore, this year's equipment shutdown and maintenance situation is even worse than in previous years. Nearly a hundred chemical companies, including Lihuayi, Fushun Petrochemical, Jilin Petrochemical, Sinopec Mitsubishi, Maoming Petrochemical, Yanshan Petrochemical, etc., have recently been shut down for maintenance or are about to undergo maintenance, involving dozens of chemical raw materials such as ethylene glycol, epoxy resin, pure benzene, bisphenol A, and propylene. The cycle time ranges from 10 to 50 days, and some companies have parking periods as long as 95 days. Ethylene glycol MEG: Lihuayi and Yigao stopped short during the week, Hong Sifang stopped for maintenance, and Inner Mongolia Yankuang stopped. At present, 2 units of Henan Coal Industry, 300,000 tons of Xinjiang Tianye Phase II, 200,000 tons of Hubei Fertilizer, and 1 unit of Yangmei Coal are in long-term parking status. Pure benzene: Zhenghe Petrochemical's 50,000 tons/year pure benzene unit will be shut down for maintenance from May to June 2021. Dalian Fujia Dahua's 350,000 tons/year pure benzene plant will undergo maintenance for 50 days from May 20, 2021 to July 10, 2021. Fushun Petrochemical's 280,000 tons/year pure benzene unit will undergo maintenance for 40 days from April 5, 2021 to May 15, 2021. Jilin Petrochemical's 240,000 tons/year pure benzene plant will undergo maintenance for 45 days from May 20, 2021 to July 20, 2021. Zhenhai Refinery’s 200,000 tons/year pure benzene unit will undergo maintenance for 15 days from May 20, 2021 to June 4, 2021. Shanghai Petrochemical's 150,000 tons/year pure benzene plant will be inspected for 95 days from March 10, 2021 to June 13, 2021. Shanghai Petrochemical's 550,000 tons/year pure benzene unit will be inspected for 60 days from April 15, 2021 to June 13, 2021. The styrene North Huajin 15+27,000 tons/year styrene unit will be inspected for one month from July 15 to August 15, 2021. Jilin Petrochemical's 140,000+320,000 tons/year styrene unit will be inspected throughout the plant from May to June 2021. Fushun Petrochemical's 60,000 tons/year styrene plant will be shut down for maintenance for 45 days on April 5, 2021. The 500,000 tons/year styrene plant in Dagu, Tianjin plans to shut down for maintenance for 20 days on May 5, 2021. Maoming Petrochemical's 100,000 tons/year styrene plant will be shut down for maintenance for 30 days in June 2021. Xinpu Chemical's 320,000 tons/year styrene plant will be shut down for maintenance for 25 days from October to November 2021, and will be shut down for maintenance for 12-14 days on January 12, 2021. Qilu Petrochemical's 200,000 tons/year styrene unit will undergo maintenance for 50 days in August 2021. The first phase of CNOOC's 700,000 tons/year styrene plant will undergo a 50-day cracking overhaul in late October 2021. Shandong Yuhuang 2# 250,000 tons/year styrene plant will be shut down for maintenance for about 40 days from May to June 2021. The 300,000-ton/year phenol-to-phenol unit of Yanshan Petrochemical will be shut down for maintenance on March 26 and is expected to be put into operation in mid-May. Gaoqiao Petrochemical's 250,000 tons/year phenol device is scheduled to be inspected from May 6 to May 29. Jilin Petrochemical's phenol unit plans to shut down for maintenance in May, which is expected to last 45 days. Bisphenol A Sinopec Mitsubishi's 180,000 tons/year bisphenol A unit plans to undergo maintenance for 45 days from early April to mid-May. LG Chem’s 450,000 tons/year bisphenol A device plans to undergo a 15-day maintenance in May. Kumho's 450,000 tons/year bisphenol A plant plans to overhaul two lines in May (Line 2 plans to shut down for 20 days from May to June). PP device: India's Heldia 350,000 tons/year PP unit plans to shut down for maintenance from mid-May to mid-June. India's MRPL series product 440,000 tons/year PP unit plans to shut down for maintenance from early May to the end of May. EVA: Yanshan Petrochemical's 200,000 tons/year EVA unit has been shut down for maintenance for 45 days since March 30. Beijing Huamei's 60,000 tons/year EVA plant is in long-term parking. Epoxy resin: On April 20, Hebei Langfang Nuoerxin epoxy resin plant with a production capacity of 60,000 tons/year was shut down for maintenance. The start-up time is to be determined and the inventory is empty. Bingtong: Yanshan Petrochemical's 300,000 tons/year phenol unit was shut down for maintenance on March 26 and is expected to be put into operation in mid-May. Butadiene: Jiangsu Sirbon Petrochemical's 100,000 tons/year butadiene oxidative dehydrogenation unit was shut down for maintenance. Fushun Petrochemical's 160,000-ton/year butadiene extraction unit was shut down for maintenance on April 5 and has no export sales for the time being. Ding Tong: Dushanzi Tianli High-tech Ding Tong Unit is shut down for maintenance. Fushun Petrochemical Ding Tong Unit is shut down for maintenance and hydrogen peroxide.: Anhui Cathay hydrogen peroxide parking and maintenance, Jiangsu Jinqiao Lihai hydrogen peroxide parking and maintenance, Shandong Jufeng hydrogen peroxide parking and maintenance, Jiangsu Lee and Man hydrogen peroxide parking and maintenance, Hunan Changling Refining hydrogen peroxide parking and maintenance, Anhui Quansheng hydrogen peroxide parking and maintenance, propylene: CNOOC Ningbo Daxie propylene plant shut down for maintenance and Shenyang waxed propylene plant shut down * * ： Luxi Chemical Industry * * The 100,000-ton oxidation plant was shut down for maintenance. soda ash: Hubei Shuanghuan soda ash plant was shut down for maintenance, and Jiangxi Jinghao and Salt Lake Magnesium soda ash plants were operated with reduced load. Ethylene glycol: Qianxi Coal Chemical Industry's 300,000 tons/year ethylene glycol plant plans to shut down for maintenance for one month at the end of April or early May. MMA: The first phase of the MMA unit in Jiangsu Sailbon was shut down for maintenance butyl rubber. The butyl rubber plant of Yanshan Petrochemical was shut down for maintenance. Environmental supervision and local inspections became stricter, and some companies stopped production and restricted production. Recently, eight central ecological and environmental protection inspection teams carried out inspections in eight provinces (districts) of Shanxi, Liaoning, Anhui, Jiangxi, Henan, Hunan, Guangxi, and Yunnan for about one month. Although the document emphasizes that the relevant provinces (regions) are strictly prohibited from taking simple and crude actions such as emergency shutdowns of operations and production in response to inspections, as well as perfunctory response methods such as "shut down all the time" and "stop first and then talk about it", in fact there are still some areas that adopt a more "radical" approach to suspend production and limit production. It is reported that the Central Fourth Ecological Environmental Protection Inspection Team entered Jiangxi on April 7 for a period of one month. Local companies said that due to this impact, the scope of rare earth production reduction and suspension companies has expanded again, and has affected raw ore separation plants. Previously, most of them were waste separation plants, and some plants are currently preparing to suspend operations. In the name of "emergency response", some places have implemented shutdowns of work and business based on regions and industries. Some regions have publicly announced in the chemical industry group that some chemical companies and industrial manufacturing companies will suspend production, even for about a month. A company in Guangxi reported that some companies in the stone calcium carbonate processing industry in the Hezhou area of ​​Guangxi have recently adopted power outage measures. The notice provided by netizens mentioned, “According to the requirements of documents such as the "Hezhou City Stone Calcium Carbonate Processing Industry Comprehensive Environmental Improvement "100-Day Attack" Action Home Wire and Electricity Plan" (No. 6), please take power outages (remove one-phase high-voltage incoming wires and retain domestic electricity) for 8 companies on the premise of taking safety protection measures. The power outage will start from April 14, 2021. ” The company also said that it has received notice and it is expected that more than ten small and medium-sized calcium carbonate companies will be restricted by power outages in the next few days. For the manufacturing industry, a power outage is basically equivalent to "stopping production." Even if you provide your own generator, it is not a long-term solution. As the "Heavy Calcium Capital" in Guangxi, Hezhou has an annual output of 8.5 million tons of heavy calcium carbonate powder, accounting for 35% of the national output. This move may have a greater impact on the output of the domestic calcium carbonate industry. The shortage of products has increased the anxiety of customers. Currently, product orders are full, and orders from major manufacturers have been queued up until around the end of May. Whether it is power outages, power rationing, production restrictions, or production shutdowns, some chemical companies have experienced intermittent shutdowns for rectification or production reductions for a period of time, which will directly affect the supply of domestic chemical products. This means that the market stock will be further reduced and inventory will continue to be low. A variety of products are in short supply, and low inventories have pushed prices higher. Many chemical workers said that after prices skyrocketed in the first quarter, "out of stock" and "out of stock" have gradually become the main rhythm of the chemical industry. Previously, many chemical workers were hesitant whether to stock up on supplies for emergency preparations or wait and see the situation before taking action. However, the current situation obviously does not give everyone a chance to think. Factors such as shutdowns of major chemical plants at home and abroad for maintenance, environmental inspections, and special rectifications in the chemical industry have jointly driven the chemical industry to reduce output and cause low inventories. The operating rate of some chemical sub-sectors has been less than 60%, and the imbalance between supply and demand is serious, and even facing a shortage crisis. Many chemical companies are rushing to put on production lines and increase production, even reaching full production and sales, but it still won't work in the short term. The supply of chemical raw materials such as bisphenol A and resin is in short supply, and it is necessary to queue up or even make a full reservation to place an order. With inventories declining and reluctance to sell goods increasing, companies closing deals and not quoting prices have exacerbated the shortage of supply in the market. Now that chemical giants have "stated their stance" on raising prices, it is expected that more chemical companies will follow the "wind vane" and continue to raise prices in the future. Under the first-level transmission, many industries such as coatings, finished product companies, and even downstream automobile and real estate will be affected and "changes" will occur. Content source: Paint business information