New energy chemicals lead the way

In 2022, the domestic chemical market as a whole will show a rational downward trend, and under the background of rising less and falling more, the new energy chemical market will perform better than traditional chemicals, leading the market
.

Driven by the concept of new energy, upstream raw materials have increased significantly
.
According to statistics, the top five chemical products with the highest growth rate in 2022 are lithium hydroxide, lithium carbonate (industrial products), butadiene, lithium iron phosphate, and phosphate ore
.
Among them, except for phosphate ore, they all involve the concept of
new energy.
In 2022, driven by the strong pull of the new energy vehicle industry, the prices of lithium hydroxide, lithium carbonate, lithium iron phosphate, which are closely related to lithium batteries, will show an upward trend
.
Butadiene, as a product closely related to new energy vehicles, recorded a 144% increase in the first half of 2022
.
Phosphate ore, on the other hand, has benefited from the increase in demand for phosphate fertilizers and the impact of limited resources, which has been continuously boosted
since 2021.

The rational correction of the traditional chemical products market has a general decline effect
.
In 2022, most traditional chemical products will show a high downward trend, and the correlation effect of the industrial chain is obvious
.
For example, 1,4-butanediol, tetrahydrofuran, N,N-dimethylformamide (DMF), dichloromethane, sulfuric acid, acetic acid, hydrochloric acid, etc.
, which fell in the forefront of 1,4-butanediol, tetrahydrofuran, N,N-dimethylformamide (DMF), dichloromethane, sulfuric acid, acetic acid, hydrochloric acid, etc.
, fell by 68%, 68%, 61%, 60%, 56%, 52%, and 45%
respectively.
In addition, maleic anhydride, sulfur, titanium dioxide, phenol and other products fell by 22%~43%.

It can be seen from the trend of these products that the early growth rate of traditional chemical products began to fall rationally, and the hype component gradually weakened, and once triggered the general decline effect
of the related product chain.

The basic raw materials have stabilized at a high level, and generally returned to the market law
.
Another feature of the chemical products market in 2022 is that basic raw material products stabilized at a medium and high level, hitting a new high in the first half of the year, and rationally pulling back
in the second half of the year.
Although the prices of some bulk resources, organic, inorganic and chemical fertilizer varieties fell in the second half of the year, they rebounded in the later stage, basically returning to the market
law.
For example, caustic soda, phthalic anhydride, nitric acid and aniline, which rose by 13%, 12%, 9% and 5% respectively, all fell rationally in mid-2022 or October market
highs.
Due to the wide demand for these chemical products as bulk basic raw materials, they can still maintain a strong market position
after the adjustment of the decline.
In addition, cyclohexanone, benzene, ethylene oxide, styrene, propylene and other products fell by 14%, 10%, 9%, 5% and 4%
respectively.
These products that fell back to less than 14% after the sharp rise and those that fell within 14%, the absolute price is in a medium and high position, and is relatively stable, and the role of the law of market supply and demand is gradually strengthening
.

Comprehensive analysis, the chemical products market in 2022 shows a market repair process
of returning to rationality and complying with market laws.
At the same time, the market speculation factor has cooled, which is especially obvious
in the traditional chemical products market.
Looking forward to the future, basic raw material products are expected to stabilize in 2023, traditional chemical products do not rule out the possibility of downward consolidation, and it is difficult for new energy products to increase in 2022, but the development prospects are still promising
.