2020 is more difficult than 2019. The new coronavirus first broke out in Wuhan, China, and then spread across the country. The Chinese government tried to seal the city to stop the epidemic and use the national manpower, financial and material resources to win the epidemic war. At the same time, the epidemic is spreading all over the world, and the number of overseas outbreak diagnoses has exceeded 1.9 million, and many countries have closed their cities. This has caused a significant reduction in demand.
In March, OPEC and Russia talked about the collapse of production reduction agreements, which caused Saudi Arabia to start a crude oil price war. Saudi Arabia planned to increase production to 10 million barrels per day in April. Crude oil futures prices fell in response. This makes the world’s epidemic worse. Countries hoard medicines, foods and masks. Masks established the world’s hard currency, and prices in some countries in Europe and America have skyrocketed to one thousand dollars. Within the EU, the epidemic materials are detained in transit and various plots are staged in turn. The poor control of epidemics by foreign governments changed the name of the new coronavirus to the Chinese virus, and all kinds of pan-tossing pan-and-rolls kept people eye-opening.
The world is already a global village, and it moves the whole body in one stroke. China is the world’s processing plant. When the epidemic began, foreign countries worried about how long the epidemic could last, and whether foreign orders could be completed. When China stabilized the epidemic and began to complete the orders of the previous year, the foreign epidemic quickly rose and orders were cancelled substantially. Except for daily necessities, all materials related to the epidemic are skyrocketing. Masks, ear straps associated with masks, crochet hooks, upstream of masks, meltblown cloth, PP raw materials. Isopropyl alcohol, ethanol, carbomer, etc. related to the disinfectant are skyrocketing.
We know that the raw material of the optical brightener is the most upstream oil starting from benzene, and the downstream is a necessity for people’s life. As the number of confirmed cases in the world continues to rise, orders from various countries are cancelled. Taking clothes as an example, March and April each year is the peak season for summer clothes. From the downstream printing and dyeing factories to textile factories to polyester factories, each order is related to the rise and fall of the entire production chain. The upstream of our optical brighteners, from biphenyl dichlorobenzyl, DSD acid, o-aminophenol, o-amino p-tert-butylphenol, OB acid, KCB acid, p-toluic acid ester, etc., all face downstream demand Wang even stopped production, upstream raw materials plummeted, and both ends were squeezed. Depreciation of raw material inventory, backlog of finished product optical brightener inventory, and rigid production costs for workers. This year is indeed a severe test for our chemical workers. First of all, to face difficulties, reduce production and reduce inventory, and secondly, actively explore other domestic markets, maintain downstream stocks, and actively expand channels to communicate with overseas buyers online to overcome difficulties. This article is provided by Credit Chemical.
Post time: Apr-15-2020