The prices of raw materials of hygiene products soaring!

The prices of raw materials of hygiene products soaring! Some Soaring 4000% in two days! Crude oil climbed the peak!

The prices of dozens of chemical raw materials such as bisphenol A, n-butanol, neopentyl glycol, and isobutyraldehyde have soared, with a maximum increase of 1,000 yuan per ton, or even more than 50%. Use “price increases” to resume work and production in 2021 Fired a “good start” shot.

The sanitary products industry will also be directly affected. For example, most of the raw materials of diapers come from petrochemical products, including more than 10 types of polyethylene film, non-woven fabrics, acrylic, polypropylene, and synthetic rubber.

The sanitary products industry has ushered in a new round of “price increases.”

1 Multiple refineries closed! Crude oil soared and hit a new high in nearly 13 months!

According to a report from Standard & Poor’s Global Platts later on Tuesday, the power outage caused several Texas refineries to close or reduce operations, with at least 2.6 million barrels confirmed to be completely closed, and a total of approximately 5.9 million barrels of refining capacity. At the same time, the report said that cold temperatures have also reduced the output of US crude oil and natural gas.

Due to the extreme cold in the south, millions of barrels of oil refining capacity were suspended, and crude oil futures prices continued to climb. Crude oil exceeded $60, the highest level since January 8 last year.

Last Monday, international oil prices soared to their highest level in about 13 months. As of the close of the day, the electronic trading price of WTI light crude oil futures for delivery in March rose 1.09% to 60.12 US dollars per barrel; the price of Brent crude oil for April delivery rose 1.41% to 63.31 US dollars per barrel. It is understood that after experiencing ups and downs in 2020, the international crude oil market has stabilized and rebounded from this year. Starting from the earlier November of last year, WTI and Brent crude oil futures prices have risen by more than 60%.

As the crude oil market “consumption faster than expected”, the backlog of crude oil inventories last year may soon be exhausted, and Wall Street analysts are also more optimistic about the prospects of oil prices: oil prices may climb to a high of $70 per barrel within the year.

2 The crisis hits the supply chain! Chemical raw materials frequency record high

Natural gas prices continue to skyrocket! Up to 4000%!
The severe imbalance between supply and demand has pushed up the prices of natural gas and electricity because natural gas is the main fuel used by power plants in Texas. The state’s grid operator expects that as people increase the use of heaters, electricity demand this year will surge to record levels. According to data compiled by foreign media, the average spot price of electricity in Texas on Saturday morning rose by more than 2400%, reaching more than US$4,200 per megawatt hour; electricity prices in some areas have exceeded US$5,000 per megawatt hour. For example, the average electricity price of a hub in western Texas is $5475.95 per megawatt hour, which is the highest record since 2010.

Other states have also been affected. According to foreign media reports, gas prices in Oklahoma have risen by more than 4000% in two days over the weekend. It closed at $377.13 last Friday, but the opening price at the beginning of last week was less than $4.
Propylene and ethylene industry chain is going crazy
On February 19, a large-scale plant shutdown caused the prices of propylene and ethylene to hit new highs, and several cracking plants and three propane dehydrogenation plants were shut down. The price of derivative polymers has not been greatly affected. However, sources predict that the already tight supply before the frost will be tightened sharply due to the shutdown of the device, and the prices of polyethylene, polypropylene and polyvinyl chloride, which are already high, will rise further.
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3 “Rising” is hard to stop, there is still possibility

Affected by the price increase of upstream raw materials, currently, SAP, non-woven fabrics, hot melt adhesives, breathable membranes, spandex yarns and other hygiene materials have increased their prices to a certain extent!

Many research institutions believe that the rise in crude oil prices has become the main reason supporting the rise in prices of chemical products, and the two show a positive correlation. Data show that Brent crude oil futures have risen 19.7% this year; New York light crude oil futures have risen 20% this year. In 2020, the prices of most domestic chemical products fell to historical lows, the industry’s operating rate was low, and passive destocking was triggered. Judging from the current domestic market, terminal demand has recovered substantially, and the downstream replenishment cycle has begun. The overseas epidemic has repeatedly led to the suspension of production of some overseas chemical plants, and the demand for overseas orders for domestic chemical products has further increased. The concentration of downstream orders has exploded, stimulating the demand for chemical raw materials, and the prices of many chemical products have risen significantly.

The downstream procurement during the Spring Festival holiday is basically in a stagnant state. It is expected that the market operating rate will increase after the Spring Festival holiday and the demand will be relatively concentrated, and prices may still rise. Coupled with the recent overhaul of some domestic devices, the spot supply on the spot is slightly tight. Industry insiders said that benefiting from the domestic economic recovery and the upturn in the export market, the current chemical industry is in a better period of history. The continued shortage of raw materials means that the price increase of chemical products will not stop in a short time, and the price increase may be even more intense after the year.

The dynamics of the chemical industry under the 2020 epidemic have shocked everyone, and the beginning of 2021 will also continue this unpredictable trend. It is expected that the chemical market will maintain an upward trend in the near future, and the prices of raw materials will continue to rise. The domestic hygiene products industry needs to prepare in advance and actively respond to the problem of rising raw materials. Of course, this is a challenge and an opportunity for the domestic hygiene products industry. The global sanitary products industry may be in short supply of raw materials and products, which is expected to increase the export volume of the domestic sanitary products industry.

(source:internet, reference only)

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