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A Number Of Chemical Giants Announced 19 Years Of Price Increases
- Dec 28, 2018 -

2018 is about to pass. At the beginning of the year, the price increase of many PA66 giants made the price of PA66 “single-leading” for more than half a year. Although there were many factors in the latter period, the price of PA66 could be described as “roller coaster” and fell all the way. In the silence for a few months, PA66 price increase "reproduce the rivers and lakes."

Recently, the chemical giant Dutch DSM issued a price increase letter. Due to the current rising manufacturing cost of raw materials, DSM Engineering Plastics announced that it will raise the prices of all the following products. Including: Arnite® PBTandPET series, Arnitel® copolyester elastomer series, Stanyl® polyamide series, Akulon® and Novamid® polyamide series. The categories involved are: PA66, PET, PBT, TPE, etc., of which PBT and PET prices are raised by 1,250 yuan / ton; and PA66 will be raised by 2,430 yuan / ton. (Note: The price of RMB converted by price increase does not include VAT, customs duties and other customs declarations.) The price increase has been effective since January 1, 2019.

At the same time that DSM started the 2066 PA66 price increase, other chemical giants also chose to start raising prices for their own products next year.

Evonik recently announced that it will increase its price of its methacrylic resin product series by at least 10%, and some products will increase by 20%~25%. The effective date is January 1, 2019.

Celanese, a global specialty materials company, recently announced an increase in its GUR® and GHR® grades (UHMW-PE). For orders placed on or after January 1, 2019, or as permitted by the contract, the following price increases will take effect. The price of individual products may be higher than the price set by the price increase letter.

Last week, BASF announced that from January 1, 2019, or under existing contract, BASF will use 1,6 hexanediol (HDO), caprolactone (CLO) and polycaprolactone (Capromer) in North America. The price increased by $0.10/lb. After raising the price of products at the beginning of this year, since the beginning of 2018, BASF has raised the price by 5% to 6% within the product range, but it still said that this is not enough to offset the temporary increase in oil and gas prices affecting its downstream business. The cost has risen.

In the first few quarters of this year, factors such as soaring international crude oil prices and force majeure in production facilities have led major manufacturers to issue price increases for some of their products. However, some manufacturers have not raised their prices for comprehensive consideration. For example, there are data showing that the price of natural gas per kWh this year is 4 to 5 euros more than last year, but the higher cost does not allow BASF to raise prices to offset the cost increase.

At the end of 2018, many manufacturers announced that they will raise prices next year due to factors such as rising raw material costs. However, it is not a good time to announce the increase in information at this time. In the past two months, the price of international crude oil has ushered in many times. Falling, combined with changes in market demand, and other factors, BASF, for example, did not raise prices at an earlier time, which may lead to customers now unable to cope with price increases or simply do not want to pay higher prices.

Although some manufacturers have announced that the price increase is not a good thing in the current situation, for some industries, it may mean a "strong shot". Take the price increase of DSM PA66 as an example. This is the first time to start the price increase in 2019* Cannon, can not help but want to ask who is next, and this price increase can play a role in the domestic PA66 market to support the rebound?

At the end of the year, many giants started to raise the price of "cannons". This will affect the geometry of the market in the coming year. Let us go and see.