In recent days, Henan and other places have continued to experience heavy rainfall, and serious waterlogging has occurred in cities such as Zhengzhou. The flood control situation is very severe. The heavy rain caused Henan railway and expressway travel to be affected to varying degrees. As of 23:30 on July 20, trucks were banned from the expressways in the province due to rainfall, and all vehicles were prohibited from entering the station on some road sections.
Logistics and transportation are an important part of product transactions. The stagnation of transportation in Henan Province affected by heavy rains will have a certain impact on some chemical products, especially coal chemical products. In addition, transportation is blocked, and the pace of product demand will also be affected to a certain extent.
Henan is relatively scarce in oil and gas resources, but the coal chemical industry is at the forefront of the central region. Its main products include methanol, dimethyl ether, acetic acid, synthetic ammonia, and coal tar processing products.
The impact of the heavy rain in Henan on the product is mainly reflected in the demand and transportation links. From the demand side, heavy rain will not have a significant impact on the total demand, but will affect the pace of demand. It will have a relatively small impact on the production side. Short-term transportation will be blocked or will lead to an increase in product inventory, which will then suppress product prices.
From the perspective of transportation, heavy rain caused transportation to be blocked, and the transportation of some products needed to be detoured, resulting in a prolonged transportation cycle. In addition, local products in Henan will also be unable to be digested in time due to transportation obstructions, and downstream companies such as insufficient stocking will also lead to the possibility of production restrictions.
