Chemical Raw Materials Are Setting Off a New Round Of Price Hikes!

Multiple refineries closed! Crude oil soared and hit a new high in nearly 13 months!

As the cold weather extends to southern Texas, the entire Texas can only implement alternate power outages to reduce power demand and avoid more permanent "catastrophic power outages". Large-scale power outages and dumping of trees have led to massive closures of oil production and refineries.

Motiva Enterprises, the largest oil refinery in North America, said it will close its Port Arthur oil refinery in Texas due to severe cold weather.

Chevron Phillips Chemical Company reported that due to severe cold weather at the Pasadena plant in Texas, the company will prepare to shut down equipment.

Onkyo stated that the crude oil pipeline on Line 59 was closed after a power outage.

Saudi Aramco's Motiva Enterprises LLC will also cease operations of its oil refinery in Port Arthur, Texas.

Marathon Oil Corporation's Galveston Bay refinery in south of Houston was also temporarily closed due to weather issues.

According to a report by Standard & Poor's Global Platts later on Tuesday, the power outage caused several Texas refineries to close or reduce operations. At least 2.6 million barrels were confirmed to be completely closed, and a total of approximately 5.9 million barrels of refinery capacity status. At the same time, the report said that cold temperatures have also reduced U.S. crude oil and natural gas production.

Due to the extreme cold in the south, millions of barrels of oil refining capacity were suspended, and crude oil futures prices continued to climb. Crude oil exceeded $60, a refresh of the highest level since January 8 last year.


The giants collectively delayed delivery! Up to 180 days!

Since Novel Coronavirus epidemic, overseas chemical giants have been in a dilemma between production and sales. Raw materials are in short supply and transportation is blocked, making overseas chemical companies have to reduce production costs. As the impact continues, severe shortages in the chemical market have intensified. According to market feedback, many leading chemical companies have announced force majeure and delayed delivery!

The market is seriously out of stock, and many of major

manufacturers send out price increasing letter again!

The mentioned manufacturers that extend the delivery period are the industry leaders. The severe shortage of goods in the market is beyond everyone's imagination. Under the impact of various shortages and out-of-supply, the market quotations of chemical raw materials are invalidated in one second, and the quotations of each inquiry have risen a lot, and the price increasing letters from major manufacturers have been sent out again!

Global delivery delays, worry about pushing up the chemical market!

The production of leading chemical companies has slowed down and delivery delays have aggravated the market’s concerns about shortages, and the chemical market has continued to skyrocket. According to Guanghua Trading Monitoring, there were 41 kinds of bulk chemicals that rose last week (2.15-2.19), and only 6 kinds of bulk chemicals fell. Among them, the top three gains were styrene (21.53%), isooctyl alcohol (18.48%), and hydrogenated benzene (15.81%).

Judging from the current market situation, foreign factories have closed more and the tight supply situation is difficult to ease. International crude oil continues to soar. It is expected that the chemical market will continue to rise in the first quarter.

Post time: Mar-10-2021