Multiple refinery closures! Crude oil soars to new 13-month high!

As the cold weather extends into southern Texas, the entire state of Texas has been forced to implement rotating power outages to reduce demand and avoid more protracted “catastrophic blackouts”. The widespread power outages and falling trees have led to massive closures of oil production and refineries.

Photo* Photo credit: CCTV Finance

Motiva Enterprises, North America’s largest oil refinery, said it will close its Port Arthur refinery in Texas due to severe cold weather.

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Chevron Phillips Chemical reported that the company will prepare to shut down its facilities due to severe cold weather at its Pasadena, Texas, plant.

Enbridge said the Line 59 crude oil pipeline is closed after a power outage.

Saudi Aramco’s Motiva Enterprises LLC will also cease operations at its refinery in Port Arthur, Texas.

Marathon Oil’s Galveston Bay refinery south of Houston is also temporarily closed due to weather issues.

The outage caused several Texas refineries to close or reduce operations, with at least 2.6 million barrels confirmed to be completely shut down for a total of about 5.9 million barrels of refining capacity status, according to a report from S&P Global Platts late Tuesday. Also cold temperatures have reduced U.S. crude oil and natural gas production, the report said.

Crude oil futures prices continued to climb as extreme cold in the South led to millions of barrels of refining capacity shutdowns, with crude oil topping $60, the highest level since Jan. 8 last year.

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“All in” turned red! Chemical market rises strongly!

The chemical market also joined the buzz of the Chinese New Year, with strong price increases. According to monitoring, from February 9 to February 20, monitoring of 64 kinds of chemical raw materials, only 3 kinds of raw materials to reduce prices, 7 kinds of raw materials to maintain stability, the rest of all raw materials up! Among them, DBP, octanol, n-butanol, DOP, butyl acetate, DOTP, BDO, isobutanol, butyl acrylate, phthalic anhydride and other raw materials rose by more than 20%.

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* Chemical raw material price list

Crisis hit the supply chain! Chemical raw materials frequently new high!

Polymerized MDI increased by 2270 RMB/ton!

Dongchao Specialty Chemicals (USA) Inc. issued a notice to increase the price of MDI of Millionate grade in North America, saying that from March 1, 2021, or as stipulated in the terms of the contract, Dongchao Specialty Chemicals (USA) Inc. will raise the price of MDI of this grade by $0.35/kg (about RMB 2270/ton).

The U.S. was affected by the cold weather, and the domestic polymeric MDI market was finishing at a high range before the holiday, and is expected to rise more after the holiday. Domestic heavy bus MDI plant overhaul at the end of February, foreign Europe Huntsman MDI plant overhaul in March, in addition, the United States by the sudden cold wave, BASF MDI plant freeze loss, Kostron MDI plant to reduce the negative. Foreign device failures and overhaul news, Europe and the United States is in the post-epidemic economic recovery, urban to suburban areas to support polyurethane applications in the construction, automotive, home appliances and furniture and bedding industry demand, support the demand for isocyanates, domestic raw material exports will have a positive trend, the domestic polymeric MDI market prices are likely to be in a steady rise.

Natural gas prices continue to soar! Up to 4000%!

A serious imbalance between supply and demand has pushed up natural gas and electricity prices, as natural gas is the main fuel used by power plants in Texas. The state’s grid operator expects electricity demand to soar to record levels this year as people increase their use of heaters. According to data compiled by foreign media, average spot electricity prices in Texas rose more than 2,400 percent on Saturday morning to more than $4,200 per megawatt-hour; prices in some areas have exceeded $5,000 per megawatt-hour, such as an average electricity supply price of $5,475.95 per megawatt-hour in the West Texas hub, the highest since 2010.

Other states have also been hit, with gas prices in Oklahoma rising more than 4,000 percent in two days over the weekend, according to foreign media reports. It closed at $377.13 on Friday, but opened at less than $4 at the beginning of last week.

Propylene, ethylene chain pull up wildly

On February 19, widespread plant shutdowns led to new highs in propylene and ethylene prices, with multiple crackers and all three propane dehydrogenation units shutting down. Prices of derivative polymers have not yet been significantly affected. However, sources expect prices of polyethylene, polypropylene and PVC, which are already at high levels, to rise further as unit shutdowns lead to a sharp tightening of already tight supplies before the frost.

Athena CEO

Whatsapp/wechat:+86 13805212761

Mit-ivy industry company

ceo@mit-ivy.com

ADD：Jiangsu Province, China

MIT –IVY Chemicals Industry with 4 factories for 19years，* dyes Intermediates & pharmaceutical intermediates &fine &specialty chemicals * . *TEL:008613805212761 Athena*

Bisphenol A up 6,700 yuan per ton! An increase of over 50%!

The epoxy resin industry chain continues to take off in the new year. Yesterday (19th), Bisphenol A quotes broke through RMB 20,000/ton. 20, Bisphenol A quotes rose strongly by RMB 650/ton and quotes have gone to RMB 21,000-214,000/ton. Up 1,000 yuan / ton from the beginning of the month, up 6700 yuan / ton from the low value of the year, an increase of more than 50%.

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Strong trend of chemical market is expected to continue!

The chemical market is expected to continue its strong price increase trend under the imbalance of supply and demand due to the continued economic improvement, the gradual popularization of vaccines, and the closure and shutdown of many types of chemical plants in the United States due to cold weather.

Athena CEO

Whatsapp/wechat:+86 13805212761

Mit-ivy industry company

ceo@mit-ivy.com

ADD：Jiangsu Province, China

MIT –IVY Chemicals Industry with 4 factories for 19years，* dyes Intermediates & pharmaceutical intermediates &fine &specialty chemicals * . *TEL:008613805212761 Athena