The wind direction suddenly changed, and dozens of chemical giants collectively stopped production due to “force majeure”!
Suspension of delivery, delay in delivery, and the crisis of “cutting off supply” is approaching again!
Cut off supply! Discontinued! Chemical giants have joined the ranks of “stopping production”!
Recently, chemical emergencies have increased frequently, and many giants have collectively announced “stop production.”
▶▶ LyondellBasell: The 5 million-ton production unit encountered force majeure!
According to LyondellBasell’s letter to users, LyondellBasell has closed its Quantum Chemical Company in Louisiana after suffering extreme lightning strikes in recent days. (equistar chemicals) PP factory.
It is reported that the lightning strike occurred on July 13. This unexpected event caused the interruption of public utilities in the factory and the shutdown of all production lines. The company is assessing the overall impact of the incident on the plant and is working to restart it, but LyondellBasell still does not have a complete start-up timetable. ”
According to S&P Global Platts Analytics, the plant’s PP production capacity totals 509,000 tons/year.
▶▶South Africa’s largest oil refinery has suspended production and deliveries!
South Africa’s largest oil refinery, Sapref, announced that due to domestic protests The incident suspended production and caused difficulties in the supply of all petroleum products. Routes in and out of Guazulunata Province were disrupted. Sapref’s key raw material supplier informed that transport vehicles were damaged and the safety of employees was concerned, so deliveries would be suspended.
On July 13, an oil refinery in Durban, South Africa also announced the suspension of production due to safety concerns.
▶▶Sasol suspends production
Currently, SASOL, the only international company in the world that engages in large-scale coal liquefaction to produce synthetic fuels, has declared force majeure.
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▶▶Chevron permanently closes refinery in this region
According to Reuters Chevron is considering permanently shutting down the gasoline-producing fluid catalytic cracking unit at its 112,000 barrels per day (bpd) refinery in Pasadena, Texas, as part of a possible restructuring of the plant, the agency reported.
▶▶Saudi Arabia and the Netherlands have stopped production!
According to market sources, Saudi Arabia and the Netherlands have stopped production! Yanbu National Petrochemical Company (Yansab), a subsidiary of Sabic, recently unexpectedly stopped production at its PP and LLDPE plants. The factory is located in Saudi Arabia and has polypropylene (PP) and LLDPE (LLDPE) plants with a production capacity of 400,000 tons/ year, the company has not yet given a clear recovery plan.
▶▶Chemical giants are collectively “force majeure”!
Due to the increase in extreme weather, many chemical giants have recently suspended production due to force majeure.
Most of the companies that have recently encountered force majeure and suspended production will follow up. Also following up are issues such as delayed delivery, because they have a pivotal position in the industry. Their production procedures and extended delivery time will undoubtedly have an impact on the product supply of the entire industry chain.
Qilu Petrochemical and other major domestic plants are also shutting down for maintenance!
Abroad, chemical spot supply is tight In China, major raw material manufacturers are shutting down for maintenance more frequently.
From the compiled list, the products involved in the recent shutdown for maintenance include PTA, caprolactam, styrene, methanol, MDI, etc. The maintenance time is generally about 15 to 30 days. Although some devices are under normal planned maintenance, some manufacturers have made it clear that products will be suspended during the maintenance period, which still arouses suspicion in the market about “tight supply.”
Surge of 219%, the chemical market is booming!
Data statistics show that due to the tight supply caused by the early maintenance of production companies + the increase in liquidity inflation caused by the large water release in the United States, the market price of n-butanol in China began in late March 2020 It has risen for 15 consecutive months, with a cumulative increase of more than 219%.
In terms of the market this month, “up” is still the main tone. Among the 64 chemical products monitored by Guanghua Data, products that have surged by 20% in the past 20 days include: butadiene, caprolactam, nitrile rubber, sulfuric acid, and bisphenol A. Among them, the prices of butadiene, nitrile rubber and bisphenol A increased by more than 4,000 yuan/ton.
From the perspective of supply factors such as the frequent increase in production shutdowns, products in the chemical market will still have an upward trend in the short term. However, based on the country’s frequent policy actions to suppress speculation, it is expected that the chemical market will be affected in the future. The main tone is gradually small increases, and phenomena such as single-day sudden increases rarely occur.
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