As of 3 pm on December 12, a total of 138 confirmed cases and 1 asymptomatic infection have been reported in Ningbo, Shaoxing and Hangzhou in Zhejiang Province.
A few days ago, the Zhejiang Provincial Office of Prevention and Control issued the "Emergency Notice on Comprehensively Strictly Strengthening Epidemic Prevention and Control", and the epidemic control in various parts of Zhejiang continued to upgrade.
After Zhengguang shares and Yangfan New Materials announced the temporary suspension of production last week, Xinhecheng, Longsheng Group and many other chemical companies located in Shangyu District, Shaoxing City have also joined the ranks of temporary suspension of production.
Zhejiang Huishi, a subsidiary of Yaoshi Technology:
Affected by the epidemic, gradual reduction and orderly temporary suspension of production
Yaoshi Technology (300725.SZ) issued an announcement on the evening of December 10, according to the announcement issued by the Leading Group for the Prevention and Control of Novel Coronavirus Pneumonia in Shangyu District, Shaoxing City on December 9, 2021. ": "Except for the needs of epidemic prevention and people's livelihood protection, all other companies will suspend operations. Hazardous chemicals companies must suspend production in an orderly manner to ensure safety. Strictly implement the main responsibility of the company and implement closed management with the company as a unit."
The company’s holding subsidiary, Zhejiang Huishi Pharmaceutical Co., Ltd. ("Zhejiang Huishi"), has begun to gradually reduce production volume and temporarily suspend production in an orderly manner on the afternoon of December 9 as required. The specific resumption of normal production and operation time will be in accordance with the government's epidemic control requirements Make arrangements. It is expected that this gradual reduction and orderly temporary suspension of production will delay the production and delivery of Zhejiang Huishi products, which will have a certain adverse impact on Zhejiang Huishi's operating results.
Affected by the epidemic, gradual reduction and orderly temporary suspension of production
Zhejiang Longsheng (600352) announced on the evening of December 10 that all subsidiaries of the company located in Shangyu Economic and Technological Development Zone, Hangzhou Bay, Zhejiang Province, have begun to gradually reduce production and temporarily stop production in an orderly manner due to the impact of the epidemic. The above-mentioned subsidiaries currently mainly produce chemical products such as dyes, chemical intermediates, and water-reducing agents. It is expected that the temporary suspension of production will delay the production and delivery of the company's related products, which will have an adverse impact on the company's operating results this month, but it will have a negative impact on the company in 2021. The impact of the overall annual performance is relatively limited.
Real Madrid Technology:
Temporary suspension of production due to the epidemic
On the evening of December 10, Real Madrid Technology (603181) issued an announcement stating that, affected by the epidemic, the company’s wholly-owned subsidiaries Zhejiang Lvkean Chemical Co., Ltd. and Zhejiang Real Madrid Shangyi New Material Co., Ltd. began to gradually start from the afternoon of December 9. Volume reduction and orderly temporary suspension of production.
Real Madrid Technology stated that the company’s wholly-owned subsidiaries Zhejiang Lvke’an Chemical Co., Ltd. and Zhejiang Real Madrid Shangyi New Material Co., Ltd. are located in Hangzhou Bay Shangyu Economic and Technological Development Zone (Shangyu Economic Development Zone, Zhejiang Province). It is produced by a wholly-owned subsidiary, which accounts for the company’s entire production capacity. It is expected that the gradual reduction and orderly temporary suspension of production will delay the production and delivery of the company’s products, which is expected to have an adverse impact on the company’s operating performance this month, and the impact on the company’s overall performance in 2021 is relatively limited. The specific impact is based on audited The 2021 financial report shall prevail.
The company temporarily suspends production in some factories affected by the epidemic
On the evening of December 10, Besmeet announced that in order to actively respond to and cooperate with the epidemic control requirements of the new coronavirus pneumonia prevention and control work leadership group of Shangyu District, Shaoxing City, Zhejiang Province, where the parent company of Shaoxing Besmeet Chemical Co., Ltd. is located, Shaoxing Besmeet decided to Production will be temporarily suspended from December 10, 2021. The suspension of production is expected to have a certain adverse impact on the company's operating results in the fourth quarter of 2021. At present, the company has not found any cases of infection, and all other businesses of the company are operating normally.
The company's Shangyu base subsidiary received a notice of orderly suspension of production
Guobang Pharmaceutical (605507.SH) stated on the investor interaction platform on December 10 that the company’s Shangyu base subsidiary has received an orderly suspension of production. The company strictly abides by the government’s epidemic prevention policies and fully cooperates with the epidemic prevention work. It has stopped supplying materials in an orderly and safe manner. Production is discontinued, and the impact is currently being assessed and relevant measures are being taken. The company's Weifang base and Xinchang base are in normal production.
Yangfan new materials:
The company's Shangyu production base temporarily suspends production affected by the epidemic
Yangfan New Materials Announcement: The company’s Shangyu production base received the "Notice on Comprehensively Strengthening Control Measures in the Region" issued by the New Coronavirus Pneumonia Prevention and Control Work Leading Group in Shangyu District, Shaoxing City, requiring the region to "eliminate the need for epidemic prevention, Except for the protection of people's livelihood, all other companies will suspend operations. Hazardous chemicals companies must suspend production in an orderly manner to ensure safety." The company actively responded to the government's epidemic prevention policy and started to suspend production in an orderly manner on December 10 in accordance with the spirit of the document. The time for the resumption of production is to be determined by the relevant departments based on the situation of epidemic prevention and control. The Shangyu base mainly produces some photoinitiator products. The temporary suspension of production has a relatively limited impact on the company's overall performance in 2021.
Received an orderly discontinuation notice and is assessing the impact
Xinhecheng's Shaoxing Shangyu base received an orderly shutdown notice on December 10, and Zhejiang Xinchang base was operating normally. The relevant person in charge said: "I was notified yesterday afternoon that the company is still evaluating the impact and making arrangements, and it will definitely comply with government requirements."
The current epidemic has a major short-term impact on enterprise production and transportation, but under the effective control of the government, it is believed that this round of the epidemic will soon be brought under control, and companies will also "lift the ban."
Affected by the prevention and control of the epidemic, many places in Zhejiang have been caught in the storm of "stopping production and limiting production."
It stands to reason that large factories have centralized maintenance and production capacity is limited. The prices of various raw materials should be maintained at the original prices even if they do not rise. However, due to the increasingly severe economic situation this year, more than 400,000 downstream companies have gone bankrupt since the beginning of the year. This means that the number of orders in the chemical industry has plummeted, and "more monks and less porridge" has become a true portrayal of the chemical industry.
Let's take a look at the dynamic analysis of some chemical products in East China.
Dynamic analysis of some products in East China
01 Ethylene oxide (EO)
Entering December, there are many uncertain factors in the production and sales of ethylene oxide. Among them, East China is affected by the epidemic situation in Zhenhai and other places. The transportation of products and raw materials is blocked, the inventory is high, and the supply of raw materials is not up. Production shutdown pressure.
On December 13, the average market price of ethylene oxide in East China was RMB 7,500/ton, and the average weekly price was flat, and the market supply was relatively stable.
Recently, the supply and demand of ethylene oxide in the five major regions in China have been relatively stable. East China is the main spillover area. Affected by the uncertainty of local supply and demand, the impact of changes is relatively direct, especially in Zhejiang.
From the supply side, it is expected that the output of ethylene oxide will be significantly reduced due to the support of regional maintenance and load reduction in the later period. Affected by Zhenhai in East China, production and sales have tightened significantly. In addition, some manufacturers are not enthusiastic about production, and the load output will be reduced accordingly.
On the demand side, due to the seasonal off-season, the demand is not tepid, and the speculative demand is temporarily unsupported, it is difficult for the terminal to make a big improvement. The downstream ethylene glycol supply and demand relationship still has loose expectations in the near future, the market performance is weak, and the difficulty of balancing for the integrated device continues.
In terms of cost, the upstream ethylene price of ethylene oxide is still strong, and the cost of ethylene oxide is still not low. After entering this week, the market is basically facing the relatively direct impact of the price of ethylene oxide, and when the supply and demand are in balance, the price will also stabilize and develop.
In summary, the stability of the ethylene oxide market will be the main focus in the later stage, focusing on the production and sales of manufacturers.
02 Polycarboxylic acid water reducer
Today, the monomer market of polycarboxylate water-reducing agent in East China is temporarily operating steadily.
Entering December, the average market price of polycarboxylic acid water-reducing agent monomers in East China has stabilized at 8,900 yuan/ton. The current TPEG cash ex-factory reference price is 8,600-9,000 yuan/ton. The end of 2021 is coming soon, and the market outlook for polycarboxylic acid water-reducing agent monomers will stabilize. If there is any change, it may depend on the upstream raw material market and the downstream policy impact. In the short-term, stability is the mainstay.
03 Acetic anhydride
On December 13, the average market price of acetic anhydride in East China was RMB 10,550/ton, down 0.47% from yesterday.
Last week (12.3-12.9), the domestic acetic anhydride market price fell after finishing. As of December 9, the weekly operating rate was about 60.6%, and the average market price in East China was 10,500-10,700 yuan/ton. The market price of raw material glacial acetic acid has declined, the cost-side guidance is slack, downstream demand is weak, and the bearish mentality still exists. It is expected that the industry operating rate will decline in the later period, and the market price of acetic anhydride will stabilize.
It is expected that the raw material glacial acetic acid market will fluctuate this week, and the downstream will be dominated by rigid demand, the supply and demand side will continue to play, and the acetic anhydride market will fluctuate.
Post time: Jan-05-2022