The Urethane Blog

Everchem Updates

VOLUME XXI

September 14, 2023

Everchem’s Closers Only Club

Everchem’s exclusive Closers Only Club is reserved for only the highest caliber brass-baller salesmen in the chemical industry. Watch the hype video and be introduced to the top of the league: read more

Oil prices have soared by 5%! Resin breaks through 40,000 yuan/ton! Chemical price increases continue!

Echemi 2021-04-16

Recently, international crude oil futures ushered in a surge. As of the close of April 14, the price of light crude oil futures for delivery in May on the New York Mercantile Exchange rose 2.97 US dollars to close at US$63.15 per barrel, an increase of 4.94%; the price of London Brent crude oil futures for June delivery rose 2.91 US dollars, closed at 66.58 US dollars per barrel, an increase of 4.57%. Calculated on a spot-month contract, WTI futures and Brent crude oil futures prices both hit their highest closing prices since March 17.

According to industry insiders, following OPEC, the International Energy Agency has also raised its oil demand forecast for this year. Last week, US crude oil inventories fell by 6 million barrels more than expected. Crude oil inventories fell for the third consecutive week, and the decline exceeded expectations. , Boosted people’s optimistic expectations for a recovery in energy demand. The Yemeni Houthi rebels backed by Iran attacked an oil facility in Saudi Arabia, leading to escalation of tensions in the oil-rich Middle East. Geopolitical changes have also helped support crude oil prices.

The futures market is booming in large areas, and the price of chemical products is strongly driven
Affected by the increase in crude oil, the commodity futures market opened on the 15th with a large area of red, among which crude oil futures rose the most. As of 11:20, the main crude oil rose more than 4%, thermal coal, and the main styrene-ethyl PTA futures contract rose nearly 3%. Chemical raw materials are also showing a trend of rapid rise. In recent days, dozens of chemical raw materials have risen wildly. Liquid epoxy resin has been raised by RMB 6,600/ton during the month, and some chemicals have increased by RMB 500/ton daily.

The East China liquid resin market has broken through the 40,000 yuan/ton (barreled) mark, and the offer is 40,000-41,000 yuan/ton, an increase of 6,600 yuan/ton from the beginning of the month. Since 2021, the East China liquid resin has increased by 86%. The Huangshan solid resin market also rose to 33,000-34,000 yuan/ton, and the two-step method hit 38,000 yuan/ton, a record high.

The comprehensive PC market price is 28,900 yuan/ton, an increase of 2,800 yuan/ton compared to the same period last month, an increase of 10.45%; compared with the same period last week, the price has risen 1,700 yuan/ton, an increase of 3.96%, reaching a new historical height.
Bisphenol A is quoted at RMB 30,000/ton, which is an increase of RMB 1066.67/ton from last week.
The average ex-factory price of methyl ethyl ketone in the domestic market is 8666 yuan/ton. Compared with the previous working day, the average price is raised by 500 yuan/ton, a single-day increase of 6.12%, and an increase of 7.88% compared to April 1.
Isobutyraldehyde was quoted at RMB 13,400/ton, an increase of RMB 1,150/ton or 9.39% from the beginning of the month.
Wanhua Chemical’s MTBE price in Shandong area is 6,450 yuan/ton, up by 600 yuan/ton from last week, and the North China area’s price is 6,350 yuan/ton, up by 400 yuan/ton from last week.
The average ex-factory price of methyl ethyl ketone in the domestic market is 8666 yuan/ton. Compared with the previous working day, the average price is increased by 500 yuan/ton, a daily increase of 6.12%; compared with the daily price, the average price is increased by 633 yuan/ton, an increase 7.88%.

The price of n-butanol was 11,333.33 yuan/ton, an increase of 400 yuan/ton from last week.
Epichlorohydrin is quoted at 16067 yuan/ton, an increase of 400 yuan/ton per day. Jinan Aochen Chemical Co., Ltd. quoted RMB 16,500 per ton of epichlorohydrin, and merchants’ spot prices follow the market.
Wanhua Chemical’s propylene oxide quoted price was 18,700 yuan/ton, an increase of 400 yuan/ton from last week.
The domestic acetic acid price was 7116.67 yuan/ton, an increase of 303.34 yuan/ton or 4.45% from last week. In East China and North China, some acetic acid manufacturers have failed to store and shut down equipment, and it is difficult to reverse the tight supply of market resources in the short term.
Wanhua Chemical’s diisobutylene price was 11,800 yuan/ton, up by 300 yuan/ton from last week.
Diethylene glycol was quoted at 7663 yuan/ton, a daily increase of 280 yuan/ton.
Styrene was quoted at RMB 9,250/ton, a daily increase of RMB 262/ton.
The price of hydrogenated benzene in East China is 6,725 yuan/ton, up 200 yuan/ton per day.

At present, the production and consumption growth of petrochemical products have not encountered bottlenecks. Under the influence of the epidemic last year, there was a shortage of orders in the first half of the year, chemical product inventories were high, and prices continued to fall. In the second half of the year, downstream industries continued to recover, and demand growth also drove the price of chemical products, but more often they were “rising to falling”, and the landing price was still based on actual negotiations. This year, the chemical industry has seen a subversive market situation, and the tensions of geopolitical remediation have escalated. International crude oil hit a new high in 13 months, and then continued to fluctuate at a high level. The supply of the overseas chemical industry has decreased and the demand for domestic chemicals has soared. Under the supply reduction, the price speculation brought about by the global economic recovery is superimposed. It is expected that the chemical industry will continue to rise in the future, and the supply and demand imbalance in the first half of the year will not be quickly alleviated.

https://www.echemi.com/cms/200208.html

Oil prices have soared by 5%! Resin breaks through 40,000 yuan/ton! Chemical price increases continue!

Echemi 2021-04-16

Recently, international crude oil futures ushered in a surge. As of the close of April 14, the price of light crude oil futures for delivery in May on the New York Mercantile Exchange rose 2.97 US dollars to close at US$63.15 per barrel, an increase of 4.94%; the price of London Brent crude oil futures for June delivery rose 2.91 US dollars, closed at 66.58 US dollars per barrel, an increase of 4.57%. Calculated on a spot-month contract, WTI futures and Brent crude oil futures prices both hit their highest closing prices since March 17.

According to industry insiders, following OPEC, the International Energy Agency has also raised its oil demand forecast for this year. Last week, US crude oil inventories fell by 6 million barrels more than expected. Crude oil inventories fell for the third consecutive week, and the decline exceeded expectations. , Boosted people’s optimistic expectations for a recovery in energy demand. The Yemeni Houthi rebels backed by Iran attacked an oil facility in Saudi Arabia, leading to escalation of tensions in the oil-rich Middle East. Geopolitical changes have also helped support crude oil prices.

The futures market is booming in large areas, and the price of chemical products is strongly driven
Affected by the increase in crude oil, the commodity futures market opened on the 15th with a large area of red, among which crude oil futures rose the most. As of 11:20, the main crude oil rose more than 4%, thermal coal, and the main styrene-ethyl PTA futures contract rose nearly 3%. Chemical raw materials are also showing a trend of rapid rise. In recent days, dozens of chemical raw materials have risen wildly. Liquid epoxy resin has been raised by RMB 6,600/ton during the month, and some chemicals have increased by RMB 500/ton daily.

The East China liquid resin market has broken through the 40,000 yuan/ton (barreled) mark, and the offer is 40,000-41,000 yuan/ton, an increase of 6,600 yuan/ton from the beginning of the month. Since 2021, the East China liquid resin has increased by 86%. The Huangshan solid resin market also rose to 33,000-34,000 yuan/ton, and the two-step method hit 38,000 yuan/ton, a record high.

The comprehensive PC market price is 28,900 yuan/ton, an increase of 2,800 yuan/ton compared to the same period last month, an increase of 10.45%; compared with the same period last week, the price has risen 1,700 yuan/ton, an increase of 3.96%, reaching a new historical height.
Bisphenol A is quoted at RMB 30,000/ton, which is an increase of RMB 1066.67/ton from last week.
The average ex-factory price of methyl ethyl ketone in the domestic market is 8666 yuan/ton. Compared with the previous working day, the average price is raised by 500 yuan/ton, a single-day increase of 6.12%, and an increase of 7.88% compared to April 1.
Isobutyraldehyde was quoted at RMB 13,400/ton, an increase of RMB 1,150/ton or 9.39% from the beginning of the month.
Wanhua Chemical’s MTBE price in Shandong area is 6,450 yuan/ton, up by 600 yuan/ton from last week, and the North China area’s price is 6,350 yuan/ton, up by 400 yuan/ton from last week.
The average ex-factory price of methyl ethyl ketone in the domestic market is 8666 yuan/ton. Compared with the previous working day, the average price is increased by 500 yuan/ton, a daily increase of 6.12%; compared with the daily price, the average price is increased by 633 yuan/ton, an increase 7.88%.

The price of n-butanol was 11,333.33 yuan/ton, an increase of 400 yuan/ton from last week.
Epichlorohydrin is quoted at 16067 yuan/ton, an increase of 400 yuan/ton per day. Jinan Aochen Chemical Co., Ltd. quoted RMB 16,500 per ton of epichlorohydrin, and merchants’ spot prices follow the market.
Wanhua Chemical’s propylene oxide quoted price was 18,700 yuan/ton, an increase of 400 yuan/ton from last week.
The domestic acetic acid price was 7116.67 yuan/ton, an increase of 303.34 yuan/ton or 4.45% from last week. In East China and North China, some acetic acid manufacturers have failed to store and shut down equipment, and it is difficult to reverse the tight supply of market resources in the short term.
Wanhua Chemical’s diisobutylene price was 11,800 yuan/ton, up by 300 yuan/ton from last week.
Diethylene glycol was quoted at 7663 yuan/ton, a daily increase of 280 yuan/ton.
Styrene was quoted at RMB 9,250/ton, a daily increase of RMB 262/ton.
The price of hydrogenated benzene in East China is 6,725 yuan/ton, up 200 yuan/ton per day.

At present, the production and consumption growth of petrochemical products have not encountered bottlenecks. Under the influence of the epidemic last year, there was a shortage of orders in the first half of the year, chemical product inventories were high, and prices continued to fall. In the second half of the year, downstream industries continued to recover, and demand growth also drove the price of chemical products, but more often they were “rising to falling”, and the landing price was still based on actual negotiations. This year, the chemical industry has seen a subversive market situation, and the tensions of geopolitical remediation have escalated. International crude oil hit a new high in 13 months, and then continued to fluctuate at a high level. The supply of the overseas chemical industry has decreased and the demand for domestic chemicals has soared. Under the supply reduction, the price speculation brought about by the global economic recovery is superimposed. It is expected that the chemical industry will continue to rise in the future, and the supply and demand imbalance in the first half of the year will not be quickly alleviated.

https://www.echemi.com/cms/200208.html

April 15, 2021

Middle East Update

Mideast petrochemical supply mixed; demand slows amid Ramadan

Author: Felicia Loo

2021/04/15

SINGAPORE (ICIS)–Petrochemical supply conditions are mixed in the Middle East, with trade limited for some products while cargo availability is tight when it comes to base oils, polyols and polystyrene in the first week of Ramadan.

The bulk of the region’s polyethylene (PE) and polypropylene (PP) business for April in the Middle East has been completed before the Muslim fasting month started on 12 April.

Demand is set to taper off due to shorter working hours in place in most Middle Eastern countries during Ramadan, which will end with the Eid ul-Fitr holiday.

Markets across the region are generally expected to pick up pace around mid-May.

In the East Mediterranean market, demand remains restricted with purchases being done on a need-to basis amid a sharp resurgence in coronavirus cases in Jordan and Lebanon.

With regards to polyethylene terephthalate (PET), imports Asian cargoes into the Middle East have slowed down.

Sellers were mostly looking to sell June or later deliveries, but buyers hesitate to commit on purchases amid recent price softening.

Downstream consumption in the Gulf Cooperation Council (GCC) may not experience the usual boost during the Eid holidays after Ramadan this year since big gatherings are restricted amid the pandemic.

PET bottle grade resins are typically used in bottle and sheet packaging applications

For isocyanates, trade is limited for polymeric methylene diphenyl diisocyanate (PMDI) and toluene diisocyanate (TDI) in the region.

Demand is slow and there have been few enquiries, also due to soft macroeconomic conditions.

Buyers are cautious, adopting a wait-and-see stance on the market, with a pick-up in consumption expected in mid-May while supply remains modest amid an outage at a regional facility.

For PMDI, supply from European suppliers is tight which coincides with slow demand in the GCC.

In the base oils market, supply is tight in the Middle East, with Group I supply not expected to improve soon.

Iranian producers may continue to float small-volume export tenders for the grade.

Over the last two weeks, Iranian producers have issued export sales tenders totalling just under 10,000 tonnes of Group I SN500 product, less than half the estimated monthly requirement of the UAE market.

In addition, Group II and III spot supply is expected to remain short.

There are minimal known turnarounds among base oils producers in the Middle East through the second quarter, but spot supply is likely to remain challenged as many producers have had to reduce output in part due to lower feedstock availability.

For 10-13.5% polyether polyols (POP), most customers in the Middle East have assumed a wait-and-see stance on the market this week amid tight supply in northeast Asia.

Less supply is available to the Middle East as most cargoes from northeast Asia had previously been sold to the US and Europe.

GCC polyols supply is seen to be limited due to unexpected upstream issues at a regional facility.

Meanwhile, polystyrene (PS) buyers in the Middle East reported a shortage of supply from a major regional producer, preventing it from making offers to some customers.

Spot availability was also hard to come by from other suppliers in Asia and Europe.

Focus article by Felicia Loo and Veena Pathare

https://www.icis.com/explore/resources/news/2021/04/15/10628222/mideast-petrochemical-supply-mixed-demand-slows-amid-ramadan

April 15, 2021

Middle East Update

Mideast petrochemical supply mixed; demand slows amid Ramadan

Author: Felicia Loo

2021/04/15

SINGAPORE (ICIS)–Petrochemical supply conditions are mixed in the Middle East, with trade limited for some products while cargo availability is tight when it comes to base oils, polyols and polystyrene in the first week of Ramadan.

The bulk of the region’s polyethylene (PE) and polypropylene (PP) business for April in the Middle East has been completed before the Muslim fasting month started on 12 April.

Demand is set to taper off due to shorter working hours in place in most Middle Eastern countries during Ramadan, which will end with the Eid ul-Fitr holiday.

Markets across the region are generally expected to pick up pace around mid-May.

In the East Mediterranean market, demand remains restricted with purchases being done on a need-to basis amid a sharp resurgence in coronavirus cases in Jordan and Lebanon.

With regards to polyethylene terephthalate (PET), imports Asian cargoes into the Middle East have slowed down.

Sellers were mostly looking to sell June or later deliveries, but buyers hesitate to commit on purchases amid recent price softening.

Downstream consumption in the Gulf Cooperation Council (GCC) may not experience the usual boost during the Eid holidays after Ramadan this year since big gatherings are restricted amid the pandemic.

PET bottle grade resins are typically used in bottle and sheet packaging applications

For isocyanates, trade is limited for polymeric methylene diphenyl diisocyanate (PMDI) and toluene diisocyanate (TDI) in the region.

Demand is slow and there have been few enquiries, also due to soft macroeconomic conditions.

Buyers are cautious, adopting a wait-and-see stance on the market, with a pick-up in consumption expected in mid-May while supply remains modest amid an outage at a regional facility.

For PMDI, supply from European suppliers is tight which coincides with slow demand in the GCC.

In the base oils market, supply is tight in the Middle East, with Group I supply not expected to improve soon.

Iranian producers may continue to float small-volume export tenders for the grade.

Over the last two weeks, Iranian producers have issued export sales tenders totalling just under 10,000 tonnes of Group I SN500 product, less than half the estimated monthly requirement of the UAE market.

In addition, Group II and III spot supply is expected to remain short.

There are minimal known turnarounds among base oils producers in the Middle East through the second quarter, but spot supply is likely to remain challenged as many producers have had to reduce output in part due to lower feedstock availability.

For 10-13.5% polyether polyols (POP), most customers in the Middle East have assumed a wait-and-see stance on the market this week amid tight supply in northeast Asia.

Less supply is available to the Middle East as most cargoes from northeast Asia had previously been sold to the US and Europe.

GCC polyols supply is seen to be limited due to unexpected upstream issues at a regional facility.

Meanwhile, polystyrene (PS) buyers in the Middle East reported a shortage of supply from a major regional producer, preventing it from making offers to some customers.

Spot availability was also hard to come by from other suppliers in Asia and Europe.

Focus article by Felicia Loo and Veena Pathare

https://www.icis.com/explore/resources/news/2021/04/15/10628222/mideast-petrochemical-supply-mixed-demand-slows-amid-ramadan

April 14, 2021

RV Surge

“Unprecedented Demand”: RV Sales Hit Record In February, On Pace For Blowout 2021

by Tyler DurdenWednesday, Apr 14, 2021 – 11:05 AM

With median prices for both existing and new homes at all time highs, and soaring at a record annualized rate of almost 20%…

… increasingly more Americans find themselves priced out of homeownership and, unwilling to rent shoeboxes in those liberal bicoastal, record tax incubators, are instead opting to not purchase expensive (and stationary) homes altogether, and are picking a far cheaper (and mobile) option.

According to the RV Industry Association (RVIA), an industry association trade group that monitors the RV industry, manufacturers are shipping a record number of new units to dealer lots across the county that are being snapped up almost as soon as they arrive.

A February survey of manufacturers showed total RV shipments for the month topping out at 48,286 units, an increase of 30.1% compared to the same period last year, making February 2021 the best February on record.

“As people begin to think about their spring and summer vacations, RV trips continue to be the preferred way to travel for millions of Americans,” said RV Industry Association President & CEO Craig Kirby. “As evident in this month’s record shipment report, RV manufacturers and suppliers are committed to meeting the demand from new consumers as well as those looking to upgrade their existing RVs. According to the report, the industry remains on track to build more RVs in 2021 than in any previous year.”

It’s part of a continuing trend the RVIA has been watching closely: “We’re on quite a streak right now,” said Monika Geraci, a RVIA analyst and spokesperson. “November and December were record-breaking months, too.”

According to the recent study commissioned by RVIA, RV wholesale shipments appear to be headed to their highest levels in 2021. Those projections show total RV shipments ranging between 523,000 units and 543,000 units for the coming year, representing a 23% increase over the 2020 year-end total of 430,412 units. It suggests a 5% gain over the record high of 504,600 units shipped in 2017.

“RV shipments in 2021 are forecast to reach record highs as the industry continues its over 40 years of long-term growth,” said Kirby. “We expect consumers to continue to turn to RVs not only because they allow people to recreate responsibly, but also because RVs allow people the freedom to live a fun, active outdoor lifestyle.”

Those numbers surprised even RV insiders, who said they thought 2020 would be a down year.

“A year ago when RV plants shut down for nearly two months, who would have thought we would be talking about record-breaking shipments less than a year later?” said Jeff Rutherford, president and CEO of Airxcel Inc. and RV Industry Association chairman. “The fact that 2021 is projected to be the best year ever for RV shipments speaks to the strengths of our industry and the incredible appeal of the RV lifestyle.”

One factor helping drive the stronger demand for RVs seems to be that they have found a new audience with younger customers. Studies show that 18- to 34-year-olds now make up 22% of the market of new RV buyers, a significant increase.

That study also found RV ownership has increased over 62% in the last 20 years, and now a record 11.2 million American households own RVs. Those numbers are split almost equally between those over and under the age of 55. Additionally, the study found 9.6 million households intend to buy an RV within the next five years. And of that, 84% of Millennials and Gen Zers who own RVs plan to buy another RV within the next five years, and 78% of them saying they want to buy a brand-new model.

According to the report, usage for RV owners remains steady at 20 days a year, while people who say they now intend to buy an RV also say they plan to use their new units for an average of 25 days per year. This increase is thought to be the result of changing attitudes toward working remotely and distance learning. Both give families more ability to be away from home, but still working, than in the past.

Nearly a third of the respondents in the study are “first-time owners,” underscoring the growth of the industry in the past decade. Ownership is spread widely not only across age levels, but also across genders.

In 2017, the industry’s best year to date, manufacturers built and moved just over half a million new units to dealer lots around the county, but those numbers pale when placed against the anticipated growth expected throughout this year.

“It looks like a significant increase over our best year ever,” Geraci said. “And that’s because many people are still looking forward to taking that RV trip they dreamed of. There’s really continued customer demand. Inventory on dealer lots continues to be at historic lows because of the demand by consumers. Based on those two factors alone, it should be a really strong year for the industry.”

Demand for new RVs was strong before the pandemic and stronger still during and after. Geraci said RVIA has been watching demand steadily grow over the last decade.

“If we look back 13 months ago, the RV numbers were really strong. They were up over 2019. So even pre-pandemic, people were looking at RVs. Add the pandemic on top of that, where you had people who had maybe thought about RVing suddenly jumping in,” she said.

While large segments of the travel industry suffered due to the pandemic, it appears that people’s appetite to travel failed to decrease, making RVs a great alternative. Geraci said an RV allows people bring along their own bedroom, kitchen and bathroom, giving most the travel solution they were looking for.

RVs became hot in 2020 when more traditional travel and vacation plans, including air travel, cruising and hotel stays, were crushed by the pandemic. Instead, Americans opted to snap up RVs and hit the road as a safer alternative for their time off.

“It’s easy to social distance in an RV,” she said.

Traditional trailers, units that are pulled behind a truck, still dominate the industry and account for the lion’s share of all sales. But demand for fifth wheels, vans and motorhomes are all up by as much as 20%.

https://www.zerohedge.com/technology/unprecedented-demand-rv-sales-hit-record-february-pace-blowout-2021