[Industry Focus]：Epoxy resin, bisphenol A and other raw materials continue to be in a weak situation of supply and demand; Foreign giants issued an early warning of "off supply" of chemical raw materials

Liquid epoxy resin is currently quoted at 18200 yuan/ton, down 11050 yuan/ton or 37.78% from the highest price in the year. Epoxy resin-related product prices are in the downward channel, resin cost support weakened. Downstream terminal coatings, electronic and electrical industry demand is weak, the spot market trading is weak. Affected by multiple factors such as domestic epidemics, international geopolitics, and Fed rate hikes, consumer demand is sluggish, and short-term epoxy resin demand is still limited.

is currently quoted at 11950 yuan/tonne, down 7100 yuan/tonne, or 37.27%, from the beginning of the year. With the two major downstream accelerated downward, the cost side weakened, multiple short overlay market break down. Zhejiang Petrochemical auction decline is obvious, while downstream terminal consumption is less than expected, superimposed on the upstream and downstream market weakness downward, the impact of bisphenol A is obvious.

propylene oxide is currently quoted at 10366.67 yuan/tonne, down 8533.33 yuan/tonne, or 45.15%, from the beginning of the year. Downstream propylene glycol fell by 5.62% in the month, purchasing enthusiasm weakened, the market atmosphere weakened, the market stalemate was weak. Cost-side support is insufficient, supply-side small accumulation, demand-side cautious reduction to follow up, it is expected that in the short term, epoxy propane market or will be weak operation.

is currently quoted at 8000 yuan/tonne, down 1266.67 yuan/tonne, or 13.67%, from the beginning of the year. The positive butanol market fell sharply after the shock, mainly due to the operation of the device and downstream demand. Butyl alcohol, the largest downstream butyl acrylate market performance is weak, the downstream overall industry tape master roll and acrylate emulsion demand is flat, gradually entering the demand off-season, part of the spot traders in the market turnover is not smooth, the market center of gravity narrow soft.

isopropyl alcohol is currently quoted at 7125 yuan/ton, down 941.67 yuan/ton from the beginning of the year, down 11.67%. The market price of raw material acetone fell, the market trading was light, the center of discussion was lower, and the mainstream quotation of propylene (Shandong) market fell below 8,000 yuan. Terminal procurement strength is general, the market mentality is under pressure, the goods dealer shipping intention is positive, the offer fell, the actual transaction volume is insufficient. The demand in the downstream market is mainly in demand, fast in and out, and the overall market is in a situation where supply exceeds demand.

is currently quoted at 7366.67 yuan/ton, down 6833.33 yuan/ton from the beginning of the year, a decrease of 48.12%. This round of sharp decline is mainly due to the cold downstream and terminal demand, its main downstream neopentyl glycol due to terminal demand into the off-season, under the double pressure of production and marketing, the demand for isobutyraldehyde has declined significantly. Another major downstream alcohol ester is not optimistic, the industry operating rate fell to less than 60%. Terminal coating industry due to the hot weather into the off-season, procurement enthusiasm weakened. Under the pressure of high cost and low demand, isobutyraldehyde has basically fallen below the cost line.

is currently quoted at 8300 yuan/ton for n-propanol, down 3500 yuan/ton from the beginning of the year, down 29.66%. The domestic n-propanol market as a whole showed a weak downward trend, Shandong large factory n-propanol ex-factory prices have been lowered one after another, downstream demand performance is general, the market trading atmosphere is cold, n-propanol prices continue to decline. Neopentyl glycol is currently quoted at 12233.33 yuan/ton, down 4516.67 yuan/ton from the beginning of the year, a 26.97% drop. The powder coating downstream of neopentyl glycol is mostly used for real estate decoration and building materials. Now the domestic real estate industry is in the doldrums, the operating rate of powder coatings is reduced, the demand for neopentyl glycol is greatly reduced, the enthusiasm for purchasing raw materials is reduced, neopentyl glycol enters the off-season, and the price is all the way down.

At present, the plastic chemical industry continues to be in a weak supply and demand situation. In terms of crude oil, the long-short game of crude oil is full of uncertainty. Chemical manufacturers in the middle of the industrial chain have entered the stage of "zero-profit production". The terminal consumer market is struggling for the winter, and no one dares to act rashly. And many chemicals continue to break away from the fundamentals of the "off-season", demand continues to be poor, prices are difficult to see improvement.

Recently, Gazprom informed a number of European customers that due to "special" circumstances, it could not guarantee future natural gas supply. A number of overseas chemical giants issued a "cut-off" warning, which will not only affect Europe, but also involve the operation of enterprises in the global chemical industry chain and even the derivative industry chain, which will cause some high-end imported chemical raw materials to be in short supply and difficult to purchase. The shortage of natural gas, which is also an important chemical raw material as an energy source, means that many chemicals in the natural gas industry chain will also be affected by the energy crisis, resulting in a shortage of supply.

European chemical industry is facing multiple unfavorable factors, the competitive landscape of the global chemical market is changing. For domestic chemical enterprises, the most important thing is the impact on their own industrial chain. At present, among the 130 of many key basic chemical materials in China, the 32% varieties are still blank, and the 52% varieties are still dependent on imports. Once imports are blocked, the production of chemical enterprises will also be limited.

in the subdivision of coatings, many raw materials are made of overseas products. For example, DSM in the epoxy resin industry, Mitsubishi, Mitsui, Japan's Light, Shell, Dow, Exxon Mobil, Eastman, Wacker, SK, DuPont, Akoma, Sumitomo of Japan, and Ineos in the solvent industry; Digao, BASF, Kao, Dow, Evonik, Wacker in the defoamer industry; Sika and Wacker in the curing agent industry; DuPont, Digao, Dow, 3M in the wetting agent industry; Wacker, Rodia in the filler industry, degusai; Komo, Huntsman, Konos, Teno, Ishihara, Japan in the titanium dioxide industry; Bayer, Longsheng, etc. in the pigment industry.

to the current situation, oil, natural gas, coal and other primary energy emergency, as well as electricity, refined oil and other secondary energy with the rise in the cost of high, coupled with the epidemic, foreign trade import and export of transport logistics has not yet fully recovered the reason, the market of chemical enterprises is not optimistic. chemical industry and many downstream enterprises are facing the crisis of "shortage of goods. In addition to the domestic lying flat enterprises, those enterprises that are still struggling to advance will also usher in the new test of "cooking without rice".