Over 40,000 companies have been cancelled and closed down!

More than 10,000 enterprises at home and abroad have closed down! SMEs make up the majority!

Recently, market news came out that a large number of enterprises at home and abroad have fallen into the dilemma of "closure" and "cancellation"
.

Domestic: According to the company's investigation, there are currently 3,350 chemical companies in the state of cancellation, bankruptcy, auction,
etc.
This year, due to the counterattack of the epidemic, the closure and control in many places continued, transportation and production in many areas were restricted, and a large number of small and medium-sized enterprises were on the verge of "collapse"
.

Overseas: According to the French financial news station BFM Business, the number of business closures in France in the first quarter of 2022 increased by 34.
6% year-on-year, of which the failure rate of small and medium-sized enterprises increased by 56% compared with the same period last year
.
The three major sectors of construction, industry, and commerce have suffered the most closures
.

Many big factories closed down! Chengxing Phosphorus Chemical was tragically auctioned!

In addition to small and medium-sized enterprises, there are also large enterprises that have entered the bankruptcy auction stage due to factors such as poor management and the impact of the epidemic
.

Jiangsu Chengxing Phosphorus Chemical Industry recently issued an announcement on the progress of judicial auction.
The manager of Chengxing Group will conduct a public auction (sale) from 10:00 on May 8, 2022, during the 60-day sale period (except for delays), for the holdings of the company's controlling shareholder, Chengxing Group.
For the company's shares, the above-mentioned public auction (sale) may lead to the change of the company's controlling shareholder
.

According to the company's investigation, in the first quarter of 2022, there were 3,122 judicial auction information in the chemical industry, covering Shandong, Zhejiang, Henan, Hebei, Liaoning, Shanghai, etc.
involved
.
Many chemical companies use industrial land, real estate, ancillary facilities and equipment, real estate, parking spaces, etc.
for judicial auctions
.

Based on the above news, it can be seen that the current market economy at home and abroad is in a relatively sluggish state.
Due to the ongoing epidemic, some countries and regions have entered the fifth round of epidemic outbreaks, the supply chain has broken or slowed down, and a large number of enterprises have suffered high operating costs and transportation is difficult.
Raw materials, production, etc.
are difficult to maintain
.
Data shows that 80% of small enterprises and 30% of medium-sized enterprises in China cannot maintain cash flow for more than 3 months
.
A large number of chemical companies went bankrupt and cancelled, market orders may be reduced, and sluggish demand has dragged down the overall market trend
.

The market fell in the beginning of May! The price increase letter may be difficult to increase!

Before the festival, a number of giants issued a letter of price increase, announcing a collective increase from May 1
.
But the recent market trend, the May price increase letter may be difficult to push the market higher
.

From the stocking situation on May 1st, it can be seen that the replenishment situation this year is not as hot as in previous years, a large number of small and medium-sized enterprises are operating under pressure, and the demand for downstream terminals has decreased due to the impact of the epidemic
.

At the beginning of May, 59% of chemical raw materials were in a downward trend, and only 38% of chemical products were rising
.
The market as a whole showed a state of ups and downs
.

In the list of decliners, the lithium battery industry chain is particularly dazzling
.
Since 2021, lithium carbonate, lithium hydroxide, and lithium iron carbonate have all shown explosive growth, with an increase of even more than 800%
.
However, in May, the "three brothers of the nouveau riche" joined the falling ranks one after another
.

Lithium carbonate: The quotation on May 2 was 464,000 yuan/ton, down 17,400 yuan/ton from the beginning of April, or 4%;

Lithium hydroxide: The quotation on May 2 was 470,000 yuan / ton, a decrease of 8,667 yuan / ton from the beginning of April, a decrease of 2%;

Lithium iron carbonate: The quotation on May 2 was 155,000 yuan/ton, down 5,000 yuan/ton from the beginning of April, or 3%
.

Gold three silver four over! Market demand is sluggish!

Affected by the epidemic, dozens of provinces and cities, including Shanghai, Guangdong, Fujian, Jiangsu, Zhejiang, and Shandong, have initiated lockdown policies, and transportation has been subject to many restrictions
.
Regional closures and traffic controls have resulted in the shutdown of the chemical industry chain and some chemical manufacturers voluntarily shut down for maintenance, etc.
, resulting in a rapid decline in the supply of chemical raw materials
.

On the other hand, the escalating traffic control policies have further impact on logistics and transportation
.
The regional logistics cycle is prolonged, and downstream demand has plummeted
.
Industries such as automobiles, aluminum profiles, real estate, furniture, and home appliances have all pressed the pause button, resulting in a sharp drop in demand for chemicals
.
There is no large-scale stocking plan downstream during the traditional stocking period of May 1st, and there is no sign of recovery in foreign trade, and manufacturers have a weaker attitude towards the market outlook
.

Although the "white list" of Shanghai's resumption of work has been released, and thousands of enterprises are struggling on the road of slow resumption of work, for the entire chemical industry chain, the operating rate is far from normal
.
The peak sales season of "gold three silver four" has disappeared, and the upcoming mid-year stage is not a hot season for many industries such as electrical appliances and furniture, which means that the demand in these industries is also weak
.

Industry insiders predict that some chemical products are blocked in sales, and companies adhere to the strategy of securing orders at low prices.
Even if they lose money for a while, they must retain customers and maintain market share, so there is a situation where prices drop again and again
.
Affected by the mentality of buying up and not buying down, the downstream purchase intention is low.
It is expected that the short-term domestic chemical market will be weak and consolidated, and the possibility that the market trend will continue to decline cannot be ruled out
.
The confidence of the high price has disappeared, and the market may continue to fall
.