There are only ten days left in 2023, and there will suddenly be a collective price increase around the world, the most eye-catching of which is the skyrocketing price increase. BP reportedly announced on December 18 that it would suspend the passage of oil tankers through the Red Sea, becoming the first international oil major in the world to take a stand. By this time, WTI had reached 79 per barrel94 dollars, Brent *** is 79 per barrel$37, a strong rally, accumulating **10%, is expected to break through the $80 mark soon.
*The skyrocketing price has directly affected the ** of many downstream industrial chains, and price increase letters have been issued. The plastic industry is one of them, and the two major PS plastic companies announced a price increase of up to 800 yuan. DIC Corporation of Japan announced that it will increase the price of polystyrene (PS) products and styrene series products from January 1, 2024. The products that have been raised upwards include styrene, GPPS, HIPS and elastic ethylene, all of which rose by more than 16 yen per kilogram. Toyo PS Co., Ltd. also announced that it will increase the company's polystyrene (PS)** effective January 1, 2024. The products that have been raised include GPPS, HIPS, special grade PS and flame retardant grade PS, all of which have increased by more than 15 yen per kilogram.
The titanium dioxide industry has also been impacted, and leading enterprises led the rise of 700 yuan. Longbai Group issued a price adjustment letter, announcing that from January 1, 2024, various types of titanium will be raised by 100 US dollars per ton for various international customers. CNNC Huayuan titanium dioxide also issued a price adjustment letter, announcing that it will raise all types of titanium by $100 per ton from January 1, 2024.
The chip industry has not been spared, and the first of the whole series of products has risen by 20%. ADI, the American analog chip giant, recently issued the latest price increase letter to dealers, and according to the industry, the increase is between 10% and 20%. According to the price increase letter, from February 4, 2024, the product** of ADI materials will be increased. This price increase will impact new bookings and existing booking demand.
Freight rates have also been pushed up, with signs of a rise in 2024 already in sight. The continuous fermentation of the Red Sea incident led to the rise of naphtha**, and the domestic chemical market performed strongly. Styrene, ethylene glycol, PVC, PP and other varieties have bucked the trend**. Although the impact of the Red Sea incident is difficult to predict, looking back on history, the Suez Canal grounding incident in 2021 has led to a sharp rise in international shipping**, which has played a role in fueling the price increase of bulk chemicals. Therefore, in the short term, ** and bulk chemicals are driven by market concerns and are bound to continue to be strong**, but with the actions and statements of all parties, this impact may be limited.
Behind the scenes, there are the twin factors of soaring raw materials and ** tension. The phenomenon of global price increases is not limited to the first field, and there are many reasons for the influx of price increase letters. At the same time, the shortage of raw materials is also continuing, and the shortage of raw materials is common in various industrial chains.
One of the reasons for the surge was the Red Sea tanker incident, which led to uncertainty in the oil chain. After BP announced the suspension of tanker passage through the Red Sea, other international oil majors also made statements, further adding to the market's fears. In addition, the recovery of the global economy has also increased the demand for energy, but it has not increased accordingly, resulting in an imbalance between supply and demand in the market, which has become an inevitable result.
In the plastics industry, the high quality of raw materials also makes enterprises unable to withstand the pressure. One of the main raw materials of plastic products is polystyrene (PS), which directly determines the cost of plastic products. The price increase measures of Japan DIC Co., Ltd. and Toyo PS Co., Ltd. are precisely the reaction to the raw material ***. The shortage of raw materials and rising costs not only put enterprises under operating pressure, but also bring pressure to consumers.
As a white inorganic pigment widely used in coatings, plastics, paper and other fields, titanium dioxide has had a significant impact on related industries. The main raw material of titanium dioxide is ilmenite ore, and the tension in the global market has led to ilmenite ore and then promoted the price increase of titanium dioxide Longbai Group and CNNC Huayuan titanium dioxide, which is a response to raw materials and to ensure the normal operation of corporate profits.
The chip industry also stems from the shortage of raw materials. Chips are the core components of electronic products, and chip manufacturing requires a large number of scarce raw materials. With the continuous growth of global chip demand, the production of raw materials cannot quickly keep up, resulting in an increasingly prominent contradiction between supply and demand in the chip industry. The price increase letter of the American analog chip giant ADI can be said to be a direct response to the tight supply and demand in the market.
To sum up, the global surge is not just a phenomenon of a single industry, but a common problem in multiple industrial chains. The soaring raw materials and the strain became the main reasons for the push.
As one of the most important energy resources in the world, its tension will directly lead to the occurrence of the Red Sea oil tanker incident, which undoubtedly exacerbates the market's worries about the market. BP's decision to suspend the passage of oil tankers through the Red Sea has sparked widespread concern and discussion in the industry. Other international oil majors have also taken a stand, further increasing the uncertainty in the market. **Limited, the market's worries are driving ***fast**.
However, the actual impact of the Red Sea tanker incident on the global market needs to be further observed. Countries** and companies are stepping up their investigations to ensure the safe and smooth flow of shipping lanes in the Red Sea. Although there is a certain volatility in the market, it is expected that with the actions and statements of all parties, the impact on *** may be limited.
The plastics industry is an important part of the global bulk chemical industry chain, and the quality of its raw materials directly affects the final product. At present, there is a significant increase in the number of plastic raw materials. Polystyrene (PS) is one of the main raw materials in the plastics industry, which directly leads to the development of plastic products.
According to the price increase letter issued by Japan's DIC Co., Ltd. and Toyo PS Co., Ltd., they have decided to increase the ** of polystyrene (PS) and its series of products. The shortage of raw materials** and the rising cost are the main reasons for the price increase in the plastics industry. Plastic products are widely used in various fields, such as home appliances, automobiles, construction, etc., so the first plastic products will have a certain degree of impact on various industries.
Titanium dioxide is a white inorganic pigment widely used in coatings, plastics, paper and other fields, and its first and foremost has had a significant impact on related industries. The production of titanium dioxide mainly depends on ilmenite, but the shortage of ilmenite in the global market has led to the development of ilmenite, which in turn has promoted the growth of titanium dioxide
The price increase measures of Longbai Group and CNNC Huayuan titanium dioxide are to cope with the cost pressure brought by ilmenite ore, and also to ensure the normal operation of corporate profits. Titanium dioxide has a wide range of applications in construction, coatings, plastics and other industries, and its first application will have a certain impact on related industries.
As the core component of electronic products, chips are essential to the development of various industries around the world. However, chip manufacturing requires a large number of scarce raw materials, and the growing global demand for chips has led to a shortage of raw materials. The shortage of raw materials and strong market demand have jointly promoted the chip industry
American analog chip giant ADI recently issued a price increase letter to its distributors, with an increase of between 10% and 20%. This is a direct response to the tight supply and demand in the market, and it is also an adjustment made by the chip industry in order to maintain normal operations. Due to the wide application of chips in electronic products, the largest will have a greater impact on the entire electronics industry.
To sum up, the reason for *** worldwide is mainly due to the soaring raw materials and ** tension. Restrictions, rising raw material costs in the plastics industry, shortage of ilmenite ore in the titanium dioxide industry and shortage of raw materials in the chip industry are all important factors leading to the development of various industrial chains. This phenomenon not only brings challenges to business operations, but also puts certain pressure on consumers' lives. With the adjustment of the global market and the change of supply and demand, the pressure is expected to ease.