Since the beginning of this year, the prices of raw materials have continued to rise, and the ensuing "price hikes" have made people shocking. The upstream chemical giants have made a lot of money, and their performance and financial reports have been soaring, but the downstream companies have been complaining.
The data shows that so far, 47 listed companies in the chemical sector have disclosed their first quarterly performance forecasts. Except for Hongda New Materials, which continued to lose money, the remaining 46 listed companies have reported positive results (pre-increased, turned losses, and slightly increased). , The pre-happy ratio is as high as 97.87%. Among them, Luxi Chemical is expected to increase its net profit by more than 50 times in the first quarter, Tiantie Co., Ltd. is expected to increase its net profit by more than 60 times in the first quarter, and Duo Fluoride is expected to increase its net profit by more than 70 times in the first quarter.
On the other hand, downstream companies, due to rising raw material prices, have led to rising cost pressures. Many companies said that their profit margins have been negligible. Some said they would not accept orders for the time being and stop production pending, and some simply withdrew. According to the People's Court Announcement Network, since 2020, more than 300 companies have gone bankrupt. According to relevant department data, as of mid-June 2021, more than 100 coating and chemical companies have been cancelled within one year of establishment.
After entering 2021, the chemical industry is booming, and commodity prices such as plastics, PTA, ethylene glycol, and n-butanol have all risen. "Bulky commodities skyrocketing" has become a key word in 2021, and the degree of skyrocketing has attracted the attention of all sectors of society and relevant state departments.
According to statistics, since the beginning of this year, among the 98 monitored chemicals, 80 chemical raw materials have risen, accounting for 81.63%. Among them, polysilicon has skyrocketed all the way due to the "lack of core" problem, with an increase of over 100%. Crude benzene (+89.78%), ammonium sulfate (+87.50%), hydrogenated benzene (+83.99%), pure benzene (+83.48%), and acetic acid (81.77%) increased by more than 80%.
It can be seen that although the prices of chemical products have fallen in the second quarter, overall, there is still a large increase in chemical products this year. Hundreds of price increase letters flooded the chemical market, with one price a day, one single negotiation, and volume inquiries. Various cost pressures caused downstream companies to complain again and again. The various operations such as price increases, market closures, queuing, suspension of sales, auctions, and purchase restrictions have made chemical companies call "too difficult!"
Under this tide of price increases, companies that have no technical barriers and no monopoly nature will be the first to be eliminated.
In addition to rising cost pressures, the successive introduction of related policies has also invisibly raised the industry threshold. In recent years, due to the "high pollution and high energy consumption" characteristics of the chemical industry, it has always been one of the key industries in my country for remediation. Many provinces have already proposed special rectification and closure and withdrawal notices for chemical parks and chemical enterprises, respectively at 2021, 2022, 2025 and other time points.
