Chemical market shows the effect of industrial restructuring

From January to February of this year, China's petroleum and chemical markets are generally optimistic, demand is strong, and production and sales are well connected. However, the chemical industry is facing a severe situation in which cost pressures have surged and the cost has been downwardly shifted. The inorganic chemical products have enjoyed strong growth, but currently inorganic chemical products Larger increases in sulfur, sulfuric acid, calcium carbide, yellow phosphorus and other products, downstream users are basically inside the chemical industry; and related to textile, light industry and other industries of organic chemical products such as ethylene glycol, methanol, pure benzene, etc. Both are on the downward trend. The latest data from the China Petroleum and Chemical Industry Association shows that from January to February, China's oil and chemical industries were operating economically, and the growth rate of production declined, showing a deteriorating trend.
In February, the overall demand for oil and chemical markets was strong, and production and sales were well connected. The price rise of major basic inorganic chemical raw materials remained strong, the prices of organic chemical products generally showed a downward trend, and the increase in fertilizer prices accelerated. Of the 174 chemical products that were tracked, there were 118 kinds of increase in the year-on-year rate, accounting for 67.82%; there were 3 types, which accounted for 1.72% of the year-on-year prices, and 53 types, which accounted for 30.46%, of the year-on-year prices.
International oil price growth remained strong In February, international crude oil and refined oil prices continued to rise, but the momentum slowed. The average spot price of WTI crude oil for the month was US$93.13/barrel, up 58.86% year-on-year, and US$1.37/barrel slightly lower than the previous quarter. North Sea Brent light crude oil reached 93.14 US dollars / barrel, basically the same as last month, up 63.24%.
In February, the prices of international refined oil continued to rise. The average price of unleaded gasoline 95 reached US$102.79 per barrel, up 56.31% year-on-year, and up by US$1.7 per barrel. Diesel oil was US$110.57 per barrel, up 54.75% year-on-year.
Fertilizer prices rose In February, driven by the increase in production costs and the growth in demand for spring plowing, the price of domestic fertilizer market rose. The prices of 13 chemical fertilizers tracked by them were up by an average of 34% year-on-year, and the prices rose by an average of 6.6% month-on-month, indicating an acceleration of the upward trend. Among them, monoammonium phosphate prices rose the most, reaching 3500 yuan / ton, a record high, rose 7.7%; chain price of 3,150 yuan / ton, a 7.5% increase in the chain, the price is also the highest in history; urea price is 1920 RMB/ton, up 7.6% year-on-year and up 3.2% month-on-month.
The strong rally of inorganic products and the decline of organic products across the market showed that the price of sulphuric acid continued to rise at a high rate of RMB 905 per ton in February, which was a year-on-year increase of 126.3%, a decrease of 3.7% from the previous month, and the gains were hampered; the price of sulphur still rose to 4240 RMB/ton, a year-on-year increase of 220%, a year-on-year increase of 32.5%; soda ash price reached RMB 1,950 per ton, which was a year-on-year increase of 20.3%, a month-on-month increase of 4.3%, and a record high; Caustic soda prices reached RMB 2,945 per ton, up 18.8% year-on-year. The price of calcium carbide dropped by 0.5% qoq. The price of calcium carbide broke the historical record and reached RMB 3,150/ton, which was a year-on-year increase of 26% and a month-on-month increase of 1.0%.
In February, the price of propylene was 13,000 yuan per ton, which was a year-on-year rise of 20.9%, a slight decrease of 0.1% from the previous month; the price of pure benzene was 8,990 yuan per ton, which was a year-on-year decrease of 7.1%, and the price was 2.6%, and the price continued to decline; the price of methanol was 3,370 yuan. t, a year-on-year decrease of 0.9%, a month-on-month decrease of 0.3%; ethylene glycol price was 11,160 yuan/ton, which was a year-on-year increase of 29%, a decrease of 12.7% from the previous month and a decrease of 6.1 percentage points; the price of refined terephthalic acid continued to slump to 7450 Yuan/ton, a year-on-year decrease of 19%, and a 3.8% increase from the previous quarter.
The chemical market gradually shows the effect of industrial restructuring. On the one hand, the rigid rise in energy and raw material prices poses upward pressure on prices of chemical products. At present, the prices of raw materials such as coal, electricity, and gas have risen, and environmental protection and labor costs have been accelerating. This has driven the increase in production costs of enterprises, reduced the profitability of chemical products, and increased pressure on price increases. On the other hand, the increase in chemical production costs has been transmitted downstream. Resistance is also increasing. According to the statistics of January industrial products released by the National Bureau of Statistics, the ex-factory price of industrial products rose by 6.1% year-on-year, and the purchase price of raw materials, fuel, and power rose by 8.9%. In raw materials, fuel, and power purchase prices, chemical raw materials rose 3.8%, the smallest increase.
It is noteworthy that the current inorganic chemical products in the larger increase in sulfur, sulfuric acid, calcium carbide, yellow phosphorus and other products, downstream users are basically inside the chemical industry. The prices of organic chemical products such as ethylene glycol, methanol, and pure benzene, which are involved in other industries such as textiles and light industry, are declining. The above situation shows that the digestion capacity of the downstream companies is limited, and the chemical industry is facing a grim situation in which the cost pressures increase rapidly and the downward transfer costs are enormous.
It should be noted that the current situation facing the chemical market is an inevitable trend of the development of the national macro-control policy, and it is also an inevitable result of industrial industrial restructuring. Enterprises should have a clear understanding of this and should shift their attention to the inside. Through structural adjustment, technological progress, and management innovation, efforts should be made to reduce the consumption of raw materials and power, reduce production costs, and increase their own competitiveness.