Globalized industrial cost pressure is mounting

In recent weeks, the market pressure on chemical products has increased
.

On the one hand, international oil prices are rising rapidly; on the other hand, the shipping pricing of global shipping companies is also increasing sharply, and the cost pressure of chemical companies due to freight is also rising, further increasing the cost pressure of globalized industries

Significant rise in international oil prices

Significant increase in international oil prices Significant increase in international oil prices

On June 1, the price of Brent crude oil futures closed above US$70/barrel for the first time in two years.
Since then, international oil prices have exceeded US$70/barrel and continue to rise
.

As of June 16, Brent crude oil reported US$74.

In such a market situation, market participants are more optimistic about the outlook for international oil prices
.

Recently, executives of large oil trading companies such as Victor, Glencore and Trafigura have all stated that there is a possibility that oil prices may rise to US$100 per barrel

Trafigura Executive Chairman Jeremy Weir said there is still room for oil prices to rise
.

The world is not yet ready for clean energy and electrification to fully roll out, which guarantees oil demand

Large increase in transportation costs

Large increase in transportation costs, large increase in transportation costs

International oil prices directly affect the production costs of chemical companies
.

The freight rate of international shipping also directly affects the operating costs of chemical companies

Recently, many international shipping companies such as Hapag-Lloyd, MSC, and Kambara Motors announced that they would increase their fees starting in mid-June
.

Among them, Hapag-Lloyd announced a substantial increase in freight rates from Asia to North America from June 15th, with an increase of US$2,400 for 20-foot containers and US$3,000 for 40-foot containers

　　For the chemical industry, the cost of shipping is directly related to the profit of the enterprise
.

However, the current violent fluctuations in the shipping market and high shipping prices are eroding the profits of the international industry

　　A variety of chemical products are affected

A variety of chemical products are affected

　　Due to the soaring prices of crude oil and international shipping, the chemical industry market is being affected
.

　　Since June, although the global price increase of a variety of chemicals has eased for a while, with the recent increase in crude oil and shipping prices, the prices of some products have begun to rise again, and many companies have further increased their product prices
.

On June 14, LANXESS announced that it would increase the price of inorganic pigments globally by at least EUR 150/ton or its equivalent in local currency

　　In addition to organic chemicals, tire prices are also rising
.
Recently, Kumho Tire announced that it will increase tire prices in the Japanese market by an average of about 3%, and the implementation time will start on July 1, 2021
.
Prior to this, Michelin, Pirelli, Bridgestone, Goodyear, Sumitomo Rubber, Hankook, Yokohama and other international tire giants also announced price increases
.
In just two months, many manufacturers have increased their prices twice or even three times in a row, and the increase has been superimposed by more than 10%
.
Most tire manufacturers said that the reason for the price increase is the rising raw material prices, logistics transportation and labor costs
.