A Massive Price Recovery In Chemical Industry

In the traditionally prosperous months of September and October, the chemical industry market is finally showing signs of improvement after a prolonged period of sluggishness. Out of the 68 monitored chemical raw materials, 55 of them have experienced year-on-year increases, which accounts for a significant 80.88% of the market. Only 1 remained unchanged, while a mere 10 witnessed a decline, dispelling the gloom that characterized the first half of the year.

Notably, sulfuric acid, acetic acid, soda ash, and liquid chlorine have surged by over 30% in the past month. Isobutanol, octanol, n-butanol, propylene glycol, and butyl acetate have also experienced price fluctuations exceeding 1,000 yuan per ton.

Several major manufacturers have taken advantage of the upcoming peak season to adjust their prices. Overseas companies like Dow Chemical, Toray Industries, and others have announced price hikes for products including adipic acid, polyester, silicone, surfactants, PMMA, and more. These price adjustments range from 5% to 23%, with increases exceeding 1,700 yuan per ton.

For instance, Dow Chemical has issued a price increase notice stating that, effective from September 1st, it will raise the prices of all grades and packaging types of surfactants in the North American region, with the highest increase reaching 0.1 USD per pound (approximately 1,612 yuan per ton). Previously, Dow Chemical’s silicone business had also announced a price increase of 5-10% for its major products in the high-performance construction sector.

Japan-based companies like Japan PE Corporation and Japan PP Corporation are also raising prices significantly for their respective products.

In conclusion, the chemical industry is witnessing a gradual recovery during the “golden September and silver October” period. Overseas chemical companies have taken advantage of the peak season to increase prices, creating challenges for domestic chemical manufacturers and downstream industries. The high technological barriers and lack of alternatives make it difficult for domestic enterprises to compete, leading to successive rounds of price hikes by global chemical giants. These increases are impacting various sectors and signaling potential shifts in the industry landscape.