whe HPMC chemical price higher so much
Many research institutions believe that the rise in crude oil prices has become the main reason for the rise in prices of chemical products, and the two show a positive correlation. Data show that Brent crude oil futures have risen by 19.7% this year; New York light crude oil futures have risen by 20% this year. Acetic acid, ethylene glycol, glyphosate, chemical fiber, urea, etc. all rose to varying degrees.
"Overall, it is caused by multiple factors." Zhu Fang, director of the Market and Information Department of the China Petroleum and Chemical Industry Federation, further analyzed and pointed out to reporters that the reasons for this round of chemical price increases include oil prices. There are three factors: the first factor is that rising oil prices drive up downstream products. Recently, oil prices have risen all the way from more than 40 dollars to more than 60 dollars, and the prices of downstream products will also rise accordingly.
The second factor is market supply and demand. The supply-demand relationship of many price-increasing products is in a relatively balanced state. Because the production capacity is not very sufficient, the balance of supply and demand is relatively fragile, and it is more susceptible to price fluctuations due to downstream demand. And downstream demand is indeed improving. Zhu Fang mentioned that, driven by the massive export of downstream terminal products, the prices of many raw materials and additives have risen.
The third factor is that the operating profit margin of bulk products has been declining in recent years, and many investors have withdrawn. When downstream demand rises, raw material prices have also been pulled up.