Asian Markets
August 25, 2022
Wanhua Cracker Project
- 25 August, 2022
- Anna Larionova
Wanhua received regulatory approval for cracker project
MOSCOW (MRC) — Wanhua Chemical has obtained approval from Shandong provincial development and reform commission for its No 2 cracker with 1.2m tonne/year capacity and downstream polyolefin project at Yantai, said the company announced.
Major derivatives will include a 250,000 tonnes/year of low-density polyethylene (LDPE) plant, two polyolefin elastomer (POE) units each at 200,000 tonnes/year of capacity, a 200,000 tonne/year butadiene (BD), a 400,000 tonnes/year of aromatics extraction, and a 550,000 tonne/year cracked gasoline hydrogenation plant.
Constructions are estimated to take three years.
The timeline is not revealed.
As per MRC, Wanhua Chemical, a major petrochemical producer in China, says it will spend USD3.6 billion to build a chemical complex in Penglai, China, by 2024. The project’s centerpiece will be a propane dehydrogenation plant (PDH) with 900,000 metric tons per year of capacity. The complex will also make propylene oxide, polyether polyols, ethylene oxide, acrylic acid, polypropylene (PP), and other products.
https://www.mrchub.com/news/403737-wanhua-received-regulatory-approval-for-cracker-project
August 4, 2022
Wanhua Results
Wanhua Chemical posts 23% decrease on H1 profit
MOSCOW (MRC) — China’s Wanhua Chemical said on Friday that its net profit in the first half of 2022 dropped by over 23% amid rising feedstock and energy costs, said the company.
Revenue increased by 31.7% on surging prices and sales. Feedstocks costs rose steeply. In the first six months, average prices of benzene and coal increased by 30% and 52% year on year, respectively. Contract prices of propane and butane were 47% and 54% higher than the same period in previous year.
Polyurethane (PU) sector saw rebounding operating rates and high inventories. Supply and demand were basically balanced, but demand growth slowed down amid rising costs, manufacturing slump and high inflation.
Petrochemicals faced squeezed margins. Prices of oil and gas rallied fast and were highly volatile, major overseas economies suffered from inflation pressure, while domestic downstream consumptions of petrochemicals were curbed or delayed by sporadic outbreaks of COVID-19.
We remind, Wanhua Chemical posted a 49.56% decrease in net profits in the first half of 2021, as sales and prices both took a hit from the coronavirus pandemic. Slump in oil prices also dampened demand and prices of its products.
Prices of pure methylene diphenyl diisocyanate (MDI), its major product, decreased to CNY15,800-CNY18,700 in the first half year from CNY23,700-CNY27,200 in the same period of 2019. Prices of petrochemical products the company makes also recorded a double-digit drop.
https://www.mrchub.com/news/403310-wanhua-chemical-posts-23-percent-decrease-on-h1-profit
August 4, 2022
Wanhua Results
Wanhua Chemical posts 23% decrease on H1 profit
MOSCOW (MRC) — China’s Wanhua Chemical said on Friday that its net profit in the first half of 2022 dropped by over 23% amid rising feedstock and energy costs, said the company.
Revenue increased by 31.7% on surging prices and sales. Feedstocks costs rose steeply. In the first six months, average prices of benzene and coal increased by 30% and 52% year on year, respectively. Contract prices of propane and butane were 47% and 54% higher than the same period in previous year.
Polyurethane (PU) sector saw rebounding operating rates and high inventories. Supply and demand were basically balanced, but demand growth slowed down amid rising costs, manufacturing slump and high inflation.
Petrochemicals faced squeezed margins. Prices of oil and gas rallied fast and were highly volatile, major overseas economies suffered from inflation pressure, while domestic downstream consumptions of petrochemicals were curbed or delayed by sporadic outbreaks of COVID-19.
We remind, Wanhua Chemical posted a 49.56% decrease in net profits in the first half of 2021, as sales and prices both took a hit from the coronavirus pandemic. Slump in oil prices also dampened demand and prices of its products.
Prices of pure methylene diphenyl diisocyanate (MDI), its major product, decreased to CNY15,800-CNY18,700 in the first half year from CNY23,700-CNY27,200 in the same period of 2019. Prices of petrochemical products the company makes also recorded a double-digit drop.
https://www.mrchub.com/news/403310-wanhua-chemical-posts-23-percent-decrease-on-h1-profit
August 4, 2022
Chinese Epoxy Update
Epoxy in August Cautiously Optimistic
ECHEMI 2022-08-01
In July, the liquid epoxy resin went down all the way. The highest average price in the month was 22,000 yuan/ton, and the lowest average price was 17,800 yuan/ton, a drop of 19.09%; from January to July, the highest average price during the period was 29,300 yuan/ton, and the lowest average price was 29,300 yuan/ton. The price was 17,800 yuan/ton, a drop of 39.25%.
As of the weekend (7.29), the market price of liquid epoxy resin continued to fluctuate within a week, with limited news changes. This was mainly due to limited price fluctuations at the cost side of resins, few offers from resin manufacturers to discuss one by one, and a small amount of downstream just needed replenishment. Most of the merchants focus on stable prices, and the trading atmosphere in the market is sluggish, and it is difficult to increase the volume of real orders.
Market outlook forecast: It is expected that the epoxy resin market price will remain weak and fluctuated in the short term, and pay close attention to the trend of upstream dual raw materials and changes in downstream wind power and electronics demand.
Wind power is the ballast stone of the epoxy market, and wind power is expensive. This year, the state’s requirement for wind power installed capacity is to exceed 55GW. However, in the first half of the year, the actual installation volume was only 14.5GW, which was more than half of the time, and the installation progress did not exceed half of the time. Therefore, after August, it will gradually enter the peak installation period, and the demand for resin for blades should increase.
The 40.5GW wind power blades to be installed in the second half of the year will theoretically consume 172,200 tons of liquid epoxy, which will be allocated to 5 months, and 34,400 tons per month. However, judging from the current situation, wind power companies have not yet accelerated their actions, and the curing agent/diluent supporting the blades has no signs of recovery. Therefore, the pulling effect of wind power in August may be limited, and it is hoped that the wind power will be installed in September and October set off a climax.
Electronic appliances are estimated to be out of play. Last year, due to the global epidemic, online classes and home office overdrafts consumed a huge amount of electronic products such as tablet computers, TVs, etc., which greatly stimulated the demand for epoxy resins for electronic products. Although consumer electronics are updated quickly, they also have a certain life cycle. The market capacity that was saturated last year cannot be replicated this year. Due to the decline of the market, the demand for electronic resins has also declined this year. We can only see if the traditional gold, nine silver and ten consumption seasons can bring some hope.
On July 28, a meeting of the Political Bureau of the Central Committee was held, which is second only to the Central Economic Work Conference. In the middle of the year, it connects the previous and the next, analyzes and studies the current economic situation, and deploys the economic work in the second half of the year.
At present, the internal and external environment is more complex and severe. The epidemic and economic recovery have reached a critical point. The economy and capital market have also reached a new crossroads.
Regarding the economic growth target, the meeting pointed out that “the economy must be stabilized”, “maintain the economic operation within a reasonable range, and strive to achieve the best results”, “the major economic provinces must bravely take the lead, and the qualified provinces must strive to achieve the expected economic and social development goals. “.
This is a relatively new statement. The current international and domestic environment is complex, and the global economy is facing high uncertainty. The International Monetary Fund has just lowered its growth forecast for major global economies again.
In the second quarter of the country, major cities were affected by the epidemic. In the first half of the year, GDP achieved 2.5%. It will be very difficult to achieve the annual target of 5.5% at the beginning of the year.
The draft did not mention the specific numerical target of 5.5, which means that the annual growth target of around 5.5% is not a rigid requirement, but the meeting called for ensuring that the economy operates within a reasonable range.
With flood irrigation, the requirement of 5.5 can be fulfilled under a substantial stimulus, but on July 19, the Prime Minister just said that macroeconomic policies should be drip irrigation accurately, and that super-large-scale stimulus measures, excess currency issuance, and future advances will not be introduced in order to achieve excessive growth goals.
It is also a good thing not to mention the rigid requirements of numbers, which means that the upper levels are more objective and realistic, no longer simply pursuing numbers, and appropriately lowering expectations, which is conducive to the adjustment of my country’s economic structure and the healthy and stable development of the medium and long-term economy.
After reading the draft, it is not advisable to be overly optimistic about the economy, stock market and property market in the second half of the year. Under the condition of ensuring price stability in the second half of the year and the completion of the employment target, in the end, the economic growth rate will be slower, as long as it is acceptable within a reasonable range.
Therefore, under the premise that the national economic growth rate is slowing down, our hopes for epoxy resin in August should not be too optimistic.
August 4, 2022
Chinese Epoxy Update
Epoxy in August Cautiously Optimistic
ECHEMI 2022-08-01
In July, the liquid epoxy resin went down all the way. The highest average price in the month was 22,000 yuan/ton, and the lowest average price was 17,800 yuan/ton, a drop of 19.09%; from January to July, the highest average price during the period was 29,300 yuan/ton, and the lowest average price was 29,300 yuan/ton. The price was 17,800 yuan/ton, a drop of 39.25%.
As of the weekend (7.29), the market price of liquid epoxy resin continued to fluctuate within a week, with limited news changes. This was mainly due to limited price fluctuations at the cost side of resins, few offers from resin manufacturers to discuss one by one, and a small amount of downstream just needed replenishment. Most of the merchants focus on stable prices, and the trading atmosphere in the market is sluggish, and it is difficult to increase the volume of real orders.
Market outlook forecast: It is expected that the epoxy resin market price will remain weak and fluctuated in the short term, and pay close attention to the trend of upstream dual raw materials and changes in downstream wind power and electronics demand.
Wind power is the ballast stone of the epoxy market, and wind power is expensive. This year, the state’s requirement for wind power installed capacity is to exceed 55GW. However, in the first half of the year, the actual installation volume was only 14.5GW, which was more than half of the time, and the installation progress did not exceed half of the time. Therefore, after August, it will gradually enter the peak installation period, and the demand for resin for blades should increase.
The 40.5GW wind power blades to be installed in the second half of the year will theoretically consume 172,200 tons of liquid epoxy, which will be allocated to 5 months, and 34,400 tons per month. However, judging from the current situation, wind power companies have not yet accelerated their actions, and the curing agent/diluent supporting the blades has no signs of recovery. Therefore, the pulling effect of wind power in August may be limited, and it is hoped that the wind power will be installed in September and October set off a climax.
Electronic appliances are estimated to be out of play. Last year, due to the global epidemic, online classes and home office overdrafts consumed a huge amount of electronic products such as tablet computers, TVs, etc., which greatly stimulated the demand for epoxy resins for electronic products. Although consumer electronics are updated quickly, they also have a certain life cycle. The market capacity that was saturated last year cannot be replicated this year. Due to the decline of the market, the demand for electronic resins has also declined this year. We can only see if the traditional gold, nine silver and ten consumption seasons can bring some hope.
On July 28, a meeting of the Political Bureau of the Central Committee was held, which is second only to the Central Economic Work Conference. In the middle of the year, it connects the previous and the next, analyzes and studies the current economic situation, and deploys the economic work in the second half of the year.
At present, the internal and external environment is more complex and severe. The epidemic and economic recovery have reached a critical point. The economy and capital market have also reached a new crossroads.
Regarding the economic growth target, the meeting pointed out that “the economy must be stabilized”, “maintain the economic operation within a reasonable range, and strive to achieve the best results”, “the major economic provinces must bravely take the lead, and the qualified provinces must strive to achieve the expected economic and social development goals. “.
This is a relatively new statement. The current international and domestic environment is complex, and the global economy is facing high uncertainty. The International Monetary Fund has just lowered its growth forecast for major global economies again.
In the second quarter of the country, major cities were affected by the epidemic. In the first half of the year, GDP achieved 2.5%. It will be very difficult to achieve the annual target of 5.5% at the beginning of the year.
The draft did not mention the specific numerical target of 5.5, which means that the annual growth target of around 5.5% is not a rigid requirement, but the meeting called for ensuring that the economy operates within a reasonable range.
With flood irrigation, the requirement of 5.5 can be fulfilled under a substantial stimulus, but on July 19, the Prime Minister just said that macroeconomic policies should be drip irrigation accurately, and that super-large-scale stimulus measures, excess currency issuance, and future advances will not be introduced in order to achieve excessive growth goals.
It is also a good thing not to mention the rigid requirements of numbers, which means that the upper levels are more objective and realistic, no longer simply pursuing numbers, and appropriately lowering expectations, which is conducive to the adjustment of my country’s economic structure and the healthy and stable development of the medium and long-term economy.
After reading the draft, it is not advisable to be overly optimistic about the economy, stock market and property market in the second half of the year. Under the condition of ensuring price stability in the second half of the year and the completion of the employment target, in the end, the economic growth rate will be slower, as long as it is acceptable within a reasonable range.
Therefore, under the premise that the national economic growth rate is slowing down, our hopes for epoxy resin in August should not be too optimistic.
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