Dozens of chemical raw materials prices fall

With the multiple interest rate hikes by central banks around the world and the intensification of concerns about economic recession, the downward trend of international oil prices since July is still obvious.
Brent crude oil closed at $111.
48 per barrel on July 1 and closed at 99.
64 on July 26.
USD/barrel, down more than 10%
.

With the falling oil price, the cost support of bulk commodities gradually weakened, and the downstream raw materials fell faster than each other, and some products even showed negative prices, to the point of paying a discount to pick up the goods! Let's take a look at the specifics of the crash!

All green! Bulk raw materials welcome the collective plummet!

With the start of the global interest rate hike wave, people's worries about economic recession have intensified.
Since July 1, the bulk has continued to decline, and the situation of falling more and rising less has been going on for a month.
Among the July block price risers, there are more products with falling prices.
There are 63 kinds of products, of which the product with the largest decline is liquid chlorine, which has a decline of -179%
.

July's biggest gainers and losers

Source: Guangzhou Chemical Exchange Center

The crazy decline of raw materials is not enough.
The traditional off-season in China is coming, and downstream demand is even more bleak.
The pressure on enterprises is serious, and the compression of profits makes the enterprises have no money to make, and there is a situation of large-scale losses
.

Stop production! The market is shutting down!

The market is sluggish, and the company has suffered serious losses.
Affected by the risk aversion, companies have to press the pause button to reduce losses.
Since July, many regions have begun to stop for maintenance.
If the subsequent market continues to decline, the scale of maintenance will also increase.
Further expansion is possible
.

▶ Yichang Western Chemical Monoammonium Parking

▶Lingbao Jinyuan Chenguang Monoammonium Parking

▶Shandong Weihai Hengbang Ammonium Parking

▶Hubei Chenao Technology One Ammonium Parking

▶Shaanxi Shaanxi Diammonium Parking

▶Jiangsu Heyou liquid ammonia plant stopped

Shutting down for maintenance also means reducing production and reducing the burden of the enterprise.
Although appropriate production reduction and production suspension can help companies avoid risks and reduce losses, once a consensus is reached that demand is sluggish, market conditions are bleak, and profits decline, a large number of production capacity will be idle and the operating rate will drop.
Bring the risk of shortage to the follow-up market
.

Be alert to downside risks in the market, the scale of production cuts may expand!

In terms of crude oil, although Saudi Arabia said that its crude oil production capacity was limited and refused to increase production significantly, it brought some support to oil prices
.
However, the market is still worried about the global economic recession and the reduction of crude oil demand, and the oil price has shown a significant downward trend in the sharp shock.
Therefore, Guanghuajun speculates that there is still room for downside in the follow-up international oil price
.

At the same time, the prices of most chemical raw materials in China have fallen seriously, the market is in a traditional off-season again, downstream demand is bleak, and enterprises are operating in difficulties.
It is expected that the atmosphere of production reduction may continue.
All chemical industry friends need to be alert to the market downturn.
The loss pattern of chemical industry may continue to expand.
Large-scale production cuts may also bring the risk of shortages
.