Polyurethane sector fluctuations, multiple companies respond: downstream products may be affected to some extent

As of the midday close on April 7, the polyurethane (Yangtze) index closed up 3.91%. Staff from Huide Technology’s Securities Department told China Securities Journal · CSM Bull, exclusively, that the company had already carried out a round of price increases for polyurethane in March, mainly due to higher crude oil prices. There is no plan for a price increase in April for the time being. The company’s polyurethane is mainly used for synthetic leather, automotive accessories, and other products. Downstream demand is relatively stable. It is relatively easy for the company’s polyurethane price increases to be passed on to downstream sectors, which is a rigid transmission mechanism. The company expects that downstream players may engage in some stockpiling behavior. An insider from Huanfeng Chemical told the reporter that the company is one of the largest polyurethane pure liquid producers in China. Its downstream customers mainly include shoe manufacturers. In addition, polyurethane pure liquid used in the company’s products can also be used to manufacture low-speed tires, high-speed rail spacers, sports equipment, furniture, memory pillows, 3D printing, new energy batteries, and other fields. In the recent period, affected by higher prices of raw materials, the price of the company’s polyurethane pure liquid products has shown fluctuations, and downstream related products may be subject to some impact. Meirui New Materials responded to the reporter exclusively that its polyurethane products mainly include TPU and specialty isocyanates, with widely used downstream applications, including electronic injection molding, films, pipes, coatings, and more. Affected by upstream raw material price increases, the company has raised its product prices recently, and it will also adjust them in a timely manner in the future based on fluctuations in raw material prices and market supply conditions. Another listed company also acknowledged that downstream demand for polyurethane and the situation of enterprises are both relatively complex. For domestic listed companies, overall downstream demand remains stable. Regarding the market impact of polyurethane varieties, Ren Xiaona, an analyst in the polyurethane industry at Longzhong Information, told the reporter that this explosion incident may further intensify the already tight global polyurethane supply situation. Since the Strait of Hormuz has been closed, some polyurethane products have been unable to circulate normally; if related production units in the industrial zone are damaged, the subsequent recovery period may be longer. (CSM Bull)