Big wave of raw material prices, the chemical industry will usher in a wave of closure!

China Coatings Online News Information: Jiangsu Province recently
"on the further promotion of the province's chemical industry transformation and development of the implementation of the opinion." The introduction of this Opinion has attracted the attention of thousands of chemical companies.along the river in the petrochemical industry is the most concentrated along the river region, focusing on the implementation of pressure reduction, transfer, transformation, upgrading plans. Orderly promotion of the regional center around the city and along both sides of the river chemical enterprises to the coastal areas with environmental capacity.taihu area,in taihu area, should focus on the implementation of transfer, shutdown, phase-out, rectification and other plans. The basin shall not be newly modified to expand dyes and industrial projects that emit nitrogen and phosphorus pollutants.coastal areascoastal areas, we should focus on the implementation of advanced, high-end, green chemical standard development plans. Based on imported petroleum and other chemical raw materials resources, we will focus on the development of high-end industries such as petrochemicals, basic organic chemical raw materials, new biological and energy technologies and new energy technologies.the northern region of , the focus should be on the implementation of park upgrading, industrial chain extension and innovation development plans. We will accelerate the integration and upgrading of existing chemical parks and effectively improve the overall level of the subei park.implementation of the policy will set off a large number of enterprises to stop production and closure, mergers and reorganization tide, backward capacity, excess capacity, the elimination of the role is particularly obvious.However, the scourge is not a single line, for chemical products enterprises can avoid the wave of shutdown, thought that in these two months of the traditional peak season to earn some money, good New Year, who knows the raw materials actually crazy rise, accessories also rose together, coupled with the previous increase in transportation costs, this is simply to desperately pace!energy, raw materials, freight, and manufactured goods rose in turn in September 2016, the four-and-a-half-year-old PPI was finally reversed, marking the official start of a full-scale price hike in China's industrial sector. In fact, since the beginning of the year, coal, iron ore, paper and other bulk raw materials began to rise, a few months later transmitted to the entire industrial sector, the chemical industry has a considerable impact.
coal-carbon steel has soared due to the impact of capacity and otherDue to factors such as industrial capacity and property market inventory, domestic coking coal and thermal coal surged by more than 150% and 100%, respectively, from the end of last year. As of October 21, the steel composite price index was 79.00 points, up 19.17 points from a year earlier and 22.63 points from the beginning of the year. Prices of key steel varieties such as high-wire, third-grade rebar and hot-rolled coils rose by 27.4%, 27.9% and 44.9% YoY.chemical raw materials crazy rise, will affect the downstream industry Yesterday, a picture brush burst the circle of friends, chemical bosses were forced by the price increase is simply to run. In the past six months, upstream chemical raw materials began to surge. TDI from the beginning of the year 10,000 / ton soared to 50,000 / ton; Compared with the beginning of the year, the market price increase of more than 50% of the varieties quite a lot, many varieties have doubled or even more than doubled, such as shunbutyl rubber, acetone, acrylic, butylene, shunbutyl rubber and so on.
freight rates have risen, affecting all sectorsOn September 21st, the state issued the "strictest super-order", and freight costs skyrocketed. Some areas of logistics from 6 yuan a piece of goods rose to 10 yuan a piece, building materials per ton of transport costs rose 100 yuan, feed transportation costs rose by more than 35%, chemical raw materials rose alarmingly, coal carbon rose 10 yuan / ton ...After the raw materials crazy rise, the chemical industry began to have to rise in the hard digestion of the previous rounds of raw materials crazy upward pressure, the chemical industry can no longer hold on, although has not received formal notice, according to the latest news, there have been a number of chemical companies ready to adjust prices, brewing price increases.price hikes are not an improvement in economic fundamentals, or are not sustainable after a comprehensive analysis of the all-round rise in industrial goods, the editor-in-chief is a little unhappy. Overall, these increases are passive increases caused by rising costs, environmental governance, monetary policy, exchange rate fluctuations, macro-control, and even industry monopolies. How well, domestic and foreign market demand, consumer price index, corporate profit level, industrial growth rate, etc. have not improved significantly. Clearly, such price increases are not the result of improving economic fundamentals and are unsustainable. economic and ecological boiling, the chemical industry suffered a fatal 2016 whether it is the natural ecological environment, or the economic ecological environment, nothing is more important than stability. For China, the world's second-largest economy with low efficiency, high debt, environmental degradation and structural problems, any major adjustment could cause huge damage to the ecological environment.
after time and again strong stimulus, China's economic environment has been boiling. And this price surge, perhaps an economic ecology has been boiling external performance, the final outcome will inevitably lead to a new round of bankruptcy in the chemical industry.
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