The shortage of raw materials after the Spring Festival has spread to all walks of life. The suspension of production and sales of various major chemical plants and the shortage of raw materials have intensified, and the quotations have been constantly updated.
According to market monitoring, since February 1st, a total of 71 products on the bulk list have risen, of which 18 products have risen by more than 20%! The top three gains were: 1,4-Butanediol (84.74%), 1-Butanol (71.48%), and Isooctyl Alcohol(53.87%).
Many research institutions believe that the rise in crude oil prices has become the main reason for the rise in prices of chemical products, and the two show a positive correlation.
The reasons for this round of chemical price increases include oil prices. There are four aspects:
1, The rise in oil prices drives the rise of downstream products.
2,Is market supply and demand. The supply-demand relationship of many price-increasing products is in a relatively balanced state. Because the production capacity is not sufficient, the balance of supply and demand is relatively fragile, and it is more vulnerable to price fluctuations due to downstream demand.
3, the operating profit margin of bulk products has been declining in recent years, and many investors have withdrawn. When downstream demand rises, raw material prices have also been pulled up.
4, it is related to the epidemic. The overseas epidemic has repeatedly caused some overseas chemical plants to stop production, and this part of the production capacity has been transferred to China. The increase in demand for overseas orders for domestic chemical products has driven the demand for chemical raw materials, and the prices of many chemical products have risen significantly.
Chemical prices should go well in the short term, but they are definitely in excess in the long term.
In the face of such a deteriorating market environment, BAIFUCHEM always keeps its original intention, and BAIFUCHEM‘s products are delivered with high quality and the best price.