Nearly 100 Chemical Giant Collective Production, Raw Material Rising Tide Again?

Since the beginning of the year, tire, chemical, steel, chemical fertilizer and so on collective price rise, the enterprise was greatly impacted, product profits were seriously squeezed……The price of raw materials has spiralled.
Nearly 100 chemical enterprises have stopped production, adding insult to injury!

The last round of price increases has made many enterprises suffering, among them, the chemical market supply and demand is seriously out of balance.Recently, the news that nearly 100 leading enterprises in the chemical industry have collectively stopped production has caused a strong impact on the chemical market, which may be followed by a new round of price rises.
The announcement of close to 100 chemical companies involved in PE, bisphenol A, PC, PP and other chemicals.It is understood that the production of enterprises, part of the enterprise is part of the device maintenance, there are also part of the full stop maintenance, maintenance time is roughly 10-50 days.At the same time, some enterprises directly said that “surplus inventory is not much, or will be broken”!
Large factory parking maintenance, production plummeted, the supply of raw materials is more difficult, panic has begun to ferment……In addition, some industry giants have already raised prices, so it seems that the start of a new round of price rises is a certainty.

As demand continues to grow, a new wave of price increases may be on the way
In fact, the new round of price rise tide is not a natural formation, but the trend of The Times.It has to be said that the inflation expectation is fully reflected in the price rise of bulk commodities, and it is even called “the fastest commodity rise since the 21st century”.

At first, rising raw material prices did not cause much panic.Many factories have stocked up on raw materials before the Spring Festival to last for a while, so most factories are still waiting to sell when prices are lowered.This situation lasted for a period of time, many upstream enterprises overstocked, had to cut prices.
However, at present, the possibility of a new round of rising price of chemical raw materials is still very large, and the reason is inseparable from the growth of demand and economy.
First, the global economy is recovering rapidly and demand for chemicals and other commodities is growing.Second, the passage of the $1.9 trillion U.S. stimulus package and higher-than-expected inflation will most likely boost demand from the financial sector.

Entering March, most of the enterprises have started work one after another, manufacturing demand will further increase, supply will become the biggest problem, a new round of price increase is not far away…
The coming price rise is bound to have a huge impact on the market and enterprises again, some small companies with low profits may be withdrawn from the industry stage, and those who survive will be the strong!

Post time: Mar-29-2021