Raw materials skyrocketed under inflation

   According to China SouMao.com, Chemical Products.com, Plastics.com, etc., the price of plastic raw materials has skyrocketed recently and the market fluctuates sharply. For example, the price of Akulon®PA6 compound is increased by 150 Euro/ton, and the price of Akulon®PA66 compound is increased by 200 Euro/ton，It will take effect on March 1, 2021, subject to the contract and agreement.

   In the downstream pure terephthalic acid market, the most actively traded Zhengzhou Commodity Exchange May contract rose 234 yuan/ton, or 5.03%, to 4882 yuan/ton on February 25, continuing the week that began on February 21 Daily increase. The source said that although PX prices and crude oil futures may lead the trend of downstream PTA, the daytime jump has accelerated the bullish sentiment of PX market participants and maintained the trading momentum.

   Looking ahead, market participants agree that the fundamentals of PX have improved compared with the previous year, and the current bullish sentiment is expected to continue. It is expected that two new PTA devices will be put into production in the first quarter, which will increase the demand for PX in an already tight market. The future price trend of PX depends on overall macro factors such as the trend of the relevant market, the recovery speed of supply loss, and the promotion of the new crown vaccine on a global scale.

    Affected by the increase in raw materials, the market price of our fishing nets and gears will also increase. Recently, prices have fluctuated greatly, and the prices of various types of fishing nets have fluctuated. If necessary, customers still need to reconfirm the prices with us.

Javina Cheng

March 3, 2021