Saudi for China, pricelessness
The trade war between China and the United States has only just begun. Saudi Arabia has gone out of its way! After Saudi Arabia’s largest oil company Saudi Aramco raised the price of Arabian light crude oil sold to its Asian customers on May 1, it raised the price on Wednesday in the United States and Asia. Crude oil sales prices in the market. According to industry sources, Saudi Arabia’s price increase is entirely aimed at China.
For a long time, China lacked sufficient right to speak on oil, and Saudi Arabia and other Middle Eastern countries said that prices have risen. It is not clear that this was the first time that Saudi Arabia arbitrarily increased its price for crude oil exported to China. At the end of last year, they had been supplying Asia. The official price of Arabian ultra-light crude oil was raised by 0.50-0.60 US dollars in January, reaching a new high of 3 years. According to statistics, due to the Saudi price adjustment, China’s annual import of crude oil will have to pay 2 billion U.S. dollars, or approximately 12.6 billion yuan, for China. The price paid is heavy!
Saudi Arabia’s blatant price hikes to China actually ingested China’s heavy reliance on Saudi crude oil. At present, China’s dependence on foreign oil is as high as 70%, and its annual import of crude oil exceeds 900 billion yuan. Among imported oils, Twenty-five percent came from Saudi Arabia. If the price of oil goes up, it will be very bad for us.
Chemical raw materials, plastic raw materials ushered in rising prices, polyester products rose
Most of the chemical raw materials and plastic raw materials are extracted from crude oil. The substantial increase in crude oil prices will lead to a rise in the prices of some chemical raw materials. Currently, PTA, dyes, resins, MDI, propylene oxide and other raw materials have been used. Set off a surge in prices.
As the prices of upstream raw materials continue to rise, downstream products are pressured by rising digestion costs, and price increases are also frequently used. Taking polyester filament as an example, according to statistics, the prices of polyester filaments have all increased by more than RMB 1,000 compared with the same period of last year. / ton or more. Industry analysts said that under the premise of a better overall situation in the industry, it is expected that the high probability of polyester filaments in May will be concussive to rise.
Global dyes increase at the same time, printing and dyeing plants have high production costs
Clariant, the world's leading manufacturer of specialty chemicals, recently announced that it will implement global price increases for most of its pigments and dye products, which will be 5% to 20% due to the impact of rising prices of major raw materials, and in 2018 May 1st took effect or according to the terms of the contract. This is also the domestic rayon dye prices rose by 10,000 / ton, the transnational dye giant also made a substantial increase!
According to statistics, at the beginning of this year, Clariant has already imposed a global price increase on some of its pigment products. Thanks to this, its first-quarter sales increased by 7% year-on-year to 1.722 billion Swiss francs. In terms of distribution, its sales growth in Asia is the highest, achieving a growth of 15%.
The rise of dyes in the world will increase simultaneously. This will have a major impact on the dyeing industry in the later period and even the entire printing and dyeing industry. At present, both dyestuff production companies and printing and dyeing plants are facing tremendous environmental pressure, production capacity cannot be fully released, production costs are continuously rising, and they are forced to go up again and again. Price increase. May or even the entire second half of the year, the role of environmental protection + supply-demand conflict may help the printing and dyeing industry continue to operate at high levels.
How to deal with downstream textile, grey cloth, printing and dyeing plants
Under the background of rising oil prices, labor shortage, and environmental protection safety supervision, textile, greige, dyeing, printing and dyeing manufacturers who are not in the downstream of the polyester industrial chain have been struggling in their 'rising' voice. Many factories are responsible for the situation. People said that compared with last year, production and operating costs have risen by more than 10%, and profits have become less and less.
The dramatic increase in chemical raw materials and plastic raw materials has caused many manufacturers to continuously increase their production and operating costs. Theoretically, they will be paid by end-consumers. However, due to fierce market competition, overcapacity, consumers’ inability to buy, inventory backlog and other issues, some downstream The factory did not dare to shift production costs. Faced with this dilemma, the most immediate response strategy of the downstream factories is undoubtedly open source and throttling.
The purpose of open source is to increase revenue. The most effective method is to raise prices. However, the price increase cannot simply shift the cost. The factory should continuously improve its product value, technological content, and quality in order to achieve high quality and high levels of product quality. Value, high-value, high-price sequential deferral.
The purpose of throttling is to reduce expenditures. The phenomenon of high energy consumption and low output has always existed in downstream factories. Actually, for these chemical raw materials and plastic raw material enterprises, the degree of mechanization, production process management, technical processes, etc. A lot of room for improvement. Energy conservation, emission reduction, cleaner production, environmental protection, increased investment in technological innovation, and creation of core competitiveness. This is the fundamental reason for companies to resolve high cost pressures.