Supply Situation Chinese Chemicals

Oktober 24, 2018
blog

The supply situation for Chinese chemicals is more volatile than we’ve seen in 10 years. A new raft of stringent anti-pollution measures is forcing thousands of China’s chemical factories into permanent or temporary shutdowns. At Partners in Chemicals we’re seeing a new reality for the chemical business in China: shortages of raw materials, longer lead times and rising prices.

The main purpose of China’s “Cease-Work Orders” is to optimize the atmospheric environment and control increasingly severe haze weather especially in the winter season. The specific measures include stopping and limiting production for industrial enterprises that may cause atmospheric pollution. It will affect the supply situation of Chinese chemicals.

Illegal dumping of chemical waste hits clean factories too

China is focusing not just on reducing its infamous haze but also on cleaning up the disposal of chemical waste. Traditionally many parties have resorted to illegal dumping rather than pay high disposal prices (USD 2,000 per metric tonne). The authorities are now introducing severe measures to tackle the problem. But the infrastructure just isn’t in place to deal effectively with all the waste. So it’s a vicious circle. If a plant can’t access proper facilities for chemical waste disposal, it’s deemed to breach regulations and will be closed down

There’s a random element too. If one producer on an industrial park breaches regulations, the Chinese authorities can temporarily close all the facilities on the complex: even companies like ours which have invested in modern state-of-the art facilities. And even if you make 100% of the changes required, you could be still closed down if someone dumps waste near your plant.

Of course we applaud the Chinese authorities for taking action on the environment. But as far as we can see, the severity and speed of the new measures are taking everyone by surprise.

Prepare for chemical price rises and longer lead times from China

In a volatile situation, one thing you know for sure is that prices of chemical supplies will rise along with lead times. Our advice is to order as early as you can. Our factories in Jiangsu and Hebei province have implemented most of the new regulations and are producing at full capacity. This is also the case for our contract partners in China.  We’re working round the clock with our partners to manage the situation and obtain up-to-date and reliable information. To assess the options for our production partners and our clients.

What we know:

  • The Cease Work Order will run for 6 months from October 1 2018 to March 31 2019 in the Beijing – Tianjin and Hebei province.
  • The geographical scope has also been extended to the Yangtze river delta region. Many chemical manufacturers currently located along the Yangtze river will be shut down, relocated or renovated by 2020.
  • In the Shandong province alone the authorities have already permanently closed 620 chemical facilities this year and stopped production at 2,614 others pending rectification measures.
  • The number of cities involved is increasing from 28 to 80.
  • The shutdown affects several industries in China including: chemicals, petrochemicals, thermal power, steel, non-ferrous (non-alumina), cement.

What we expect short-term

  • Lead times for Optical Brighteners, UV Absorbers and Light Stabilizers of between 10 to 12 weeks (if the product is available)
  • Price rises
  • Shift from long-term pricing to spot pricing for chemicals
  • Increased pressure on the Chinese chemical manufacturers that are open
  • More stringent environmental measures in China through to 2020

What you can do

  • Contact us to make a clear forecast together and discuss the current local stock levels available
  • Lay in a stock of products
  • Keep in touch for the latest information

Better weather resistance of polypropylene fabric

Polypropylene (PP) fiber is a synthetic fiber spun from isotactic polypropylene, which is polymerized by…

Weiterlesen

Dubai branch office management buy-out

Since 2014 Partners in Chemicals is, under the name of ICG Specialty ChemicalsFZCO, operational in…

Weiterlesen

Thank you for visiting us!

Thank you for visiting us during Plasteurasia 2022 at the booth of our partner Etkin…

Weiterlesen

Hindered phenolic antioxidants for protection of polymers

Hindered phenolic antioxidants are compounds that have substituents on one or both sides of the…

Weiterlesen

K fair 2022 in Düsseldorf 

We will be exhibiting at the upcoming K fair in Düsseldorf for the 5th time…

Weiterlesen

Thermoset plastics – how to improve its durability and color stability?

Thermoset plastics, with thermosetting resin as the main component. It is a plastic that forms…

Weiterlesen

How to obtain better performance with Polyurethane adhesives?

Polyurethane (PU) adhesives are adhesives that contains -NHCOO- and/or isocyanate group (-NCO-) in the molecular…

Weiterlesen

Modified plastic in lightweight cars

In recent years, the development of the automotive industry revolves around lightweight, environmental protection and…

Weiterlesen

How to alleviate polyurethane yellowing?

In this article we will explain how to alleviate polyurethane yellowing. Polyurethane products are widely…

Weiterlesen

Making high-end textiles UV-resistant

UV-resistant treatment is an essential part of the functional textile finish for making high-end textiles…

Weiterlesen

Silicone adhesives

The silicone adhesives used in the early days came from natural materials. For instance, animal…

Weiterlesen

Optical Brighteners

Optical Brighteners are additives to mask the inherent yellowness and improve colors and make your…

Weiterlesen

Water-based sustainable paint

As people’s awareness of health and environmental protection is gradually improving, water-based sustainable paint is…

Weiterlesen

Omnistab Benzotriazole UV absorbers

Omnistab Benzotriazole UV absorbers have exceptionally strong and broad UV absorption properties throughout the UV…

Weiterlesen

Limit electricity for carbon reduction

The Chinese government has decided to limit electricity for carbon reduction. China is aiming to…

Weiterlesen

Excellent hydrolysis resistance phosphite antioxidant

Do you choose the right antioxidant to increase the heat aging resistance of materials? The…

Weiterlesen

Plastics with UV absorbers, a “Protective umbrella”

Almost all plastics that are exposed to sunlight or other outdoor weather conditions require protection….

Weiterlesen

Efficient liquid UV absorber

The Omnistab UV 1 is an efficient liquid UV absorber, which can absorb ultraviolet light…

Weiterlesen

Nucleating agent for polyamide

The amorphous form of polyamide is obtained by rapid quenching of molten polymer to a…

Weiterlesen

Omnistab series for automotive coatings

Automotive coating is one of the fastest developing coatings worldwide. New products are usually better…

Weiterlesen

UV Filter Sunscreen

Meteorologically, it is still winter in the Northern Hemisphere. However, the first rays of the…

Weiterlesen

What do you know about Powder coating?

What is powder coating? It is quite simple, but we would like to explain it…

Weiterlesen

Adhesives and Sealants protective products

Adhesives and sealants are essential products in many industries. Their applications range from paper, packaging,…

Weiterlesen

The world of fiber applications

What are fiber applications? Today, more than half of all fiber consumed is synthetic. For example,…

Weiterlesen

„Gorgeous modification“ of Benzotriazole UV absorber

Omnistab UV 360 is a very efficient benzotriazole UV absorber. It has good UV absorption…

Weiterlesen

Expectations early 2021

This year was different from other years and a huge challenge for everyone. Working differently…

Weiterlesen

New product groups

New product groups coming soon! We are continuously working on our product portfolio to serve…

Weiterlesen

Today’s highlight is a triazine UV absorber

A triazine UV absorber has excellent properties. In addition, the dosage you need to put…

Weiterlesen

Antioxidant for long-term thermal stabilization

Looking for an antioxidant for long-term thermal stabilization? You probably need an asymmetric hindered phenol…

Weiterlesen

UV Absorber used in a wide wavelength spectrum

In this article we will explain more about the UV absorber used in a wide…

Weiterlesen

Temperature resistant anti oxidant

An excellent temperature resistant anti oxidant is the Omnistab AN 80. The organic combination of…

Weiterlesen

PP Fibers

Looking for more stability of your polypropylene fibers (PP fibers)? Our Omnistab LS 119 is…

Weiterlesen

PE wax

In this article we will explain the characteristics and features of polyethylene wax (PE wax)….

Weiterlesen

Evaluation of new light stabilizers

Choosing your product among all available light stabilizers in the market is challenging. Based on…

Weiterlesen

Light stabilizer 2020

As of June 2020, we expand our product range with the development of, ironically, Light…

Weiterlesen

Sustaining Textile

Producing sustainable products is a hot topic. Especially in the field of clothes, it all…

Weiterlesen

Prolong the lifecycle of your engineering plastics

Engineering plastics and resins instead of metal? Yes we can. In this article we will…

Weiterlesen

UV absorbers in cosmetic industry

Sunscreen is an eternal topic in cosmetics, but it cannot exist without UV absorbers in…

Weiterlesen

Chinaplas 2021

Under current circumstances of the COVID-19, the Chinaplas will be postponed again. The 34th Chinaplas…

Weiterlesen

Omnistab Additives in Water-based Coatings

Water-based coating are coatings that uses water as a diluent and does not contain organic…

Weiterlesen

Corona virus

In this news letter we give you an update regarding to the latest Corona virus…

Weiterlesen

Additives for polyolefins

What are polyolefins? Polyolefin is a type of polymer of olefins. For example, polypropylene or…

Weiterlesen

Principles of stabilizers

Light stabilizers are important additives in rubber and plastic applications. In this article we focus…

Weiterlesen

Happy Chinese New Year

It has been a pleasure to work with you this year, we wish you a…

Weiterlesen

Anti yellowing agents

We launched two anti yellowing agents, Omnistab HN 130 & Omnistab HN 150. Both are…

Weiterlesen

Happy holidays

On behalf of our team: we wish you happy Holidays, all the best to you…

Weiterlesen

Comparison test PA6 with Omnistab LS 5519

In October we introduced the new light stabilizer for Polamide (PA); Omnistab LS 5519. To…

Weiterlesen

Light stabilizer for nylon – Omnistab LS 5519

Omnistab LS 5519 is a highly efficient light stabilizer for nylon. For example, polyamide (PA)….

Weiterlesen

Liquid Anti Oxidant

In the world of additives you see a large group of anti oxidants in powder, granular and flake form. However, if you are looking for a liquid anti oxidant

Weiterlesen

UV absorber for agriculture film

There are many different UV absorbers, but there is one that really stands out if…

Weiterlesen

Natural Rubber Latex

Since the start of Partners in Chemicals we offer the market Natural Rubber Latex. Natural…

Weiterlesen

Explosion Eastern China

An explosion at a pesticide plant in eastern China is the latest in a series…

Weiterlesen

End of cooperation with the NRC Group

Partners in Chemicals has decided, in mutual agreement with Nordmann Rassmann (NRC), to end our…

Weiterlesen

Evaluation of three UV absorbers

In this article we evaluate three different UV absorbers. They have advantages and associated characteristics….

Weiterlesen

High performance light stabilizer for coatings

In this article we highlight the performances of our Omnistab LS 123. This product is…

Weiterlesen

Near Infrared Absorber for Laser Beam Welding

Laser Technology Laser technology was originally used in 1970 to weld plastic film with CO2…

Weiterlesen

Introducing N3coat

It’s all about people “I believe in an honest and open way of doing business….

Weiterlesen

Omnistab NIR LW

The right laser absorber The diode laser has a wavelength of 800 ~ 1000nm and…

Weiterlesen

How to stop the yellowing of polyurethane flexible foam

A great number of manufacturers, including those that make high-grade sponge, have tried different solutions….

Weiterlesen

Liquid triazine UV absorber

Omnistab UV 400 is a liquid triazine UV absorber for coating products. We specially developed…

Weiterlesen

Chinaplas 2017

Partners in Chemicals presents Together with Longquan Chemicals, our booth in Hall 9.3 on stand…

Weiterlesen

Daniel Knegt

ITU WPS Gold Coast Recently he participated in the ITU WPS Gold Coast with his…

Weiterlesen

OMNISTAB UV 1600

Therefore, polymer additives are essential during manufacturing processes. It safeguards the exquisite look of surfaces…

Weiterlesen

Restrain on Chinese chemical production

The Chinese government started a straightforward campaign to decrease water pollution to control the waste…

Weiterlesen

ICG Specialty Group expands portfolio

The ICG Specialty Group is a global supplier of polymer additives whose proprietary Omnistab brand…

Weiterlesen

European Coatings Show 2016

During the European Coatings show we also showed the new generation product: Omnistab NIR. Its…

Weiterlesen

New environmental laws implemented

Why is the Chinese Chemical industry struggling? “There is still large gap in result between…

Weiterlesen

Introducing partnership with Deltachem

A Chinese partner of choice “We work with people from the Netherlands, China, Israel, Dubai,…

Weiterlesen