Dozens of chemical raw materials soared after the Lunar New Year holidays
The severe winter storm and ultra-low temperatures on the US Gulf Coast put a deep freeze on the nation's petrochemicals sector with multiple crackers and refineries shutting down amid already tight markets. At least 2.6 million barrels were confirmed to be completely closed, for a total of approximately 5.9 million barrels of refining capacity.
As of Feb 19, nearly 70% of US ethylene capacity is offline because of the winter storm and freezing temperatures, along with over 80% of propylene capacity. Propylene and ethylene industry chain is going crazy.
At the same time, the cold temperatures have also reduced U.S. crude oil and natural gas production. Natural gas prices continue to skyrocket! Up to 4000%!
From Feb 9 to Feb 20, among the 64 chemical raw materials monitored, only 3 raw materials have been reduced in price, 7 raw materials stabilized, and all other raw materials have increased! Among them, DBP, octanol, n-butanol, DOP, butyl acetate, DOTP, BDO, isobutanol, butyl acrylate, phthalic anhydride and other raw materials increased by more than 20%.
Above all, the chemical market is expected to continue the trend of strong price increases under the imbalance of supply and demand.