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

On the morning of April 7th, the petrochemical sector saw a significant rise, with the polyurethane sector showing unusual activity. Wind data indicates that by the midday close on April 7th, the Polyurethane (Yangtze River) Index had increased by 3.91%.

In terms of news, Xinhua News Agency reports that the Iranian Fars News Agency, citing unnamed sources, reported that an explosion occurred today in the Jubail Industrial Zone in northeastern Saudi Arabia involving U.S. capital, which was a large-scale attack. The report states that Jubail Industrial Zone is one of the world’s major petrochemical production bases, with an annual output of about 60 million tons of petrochemical products, accounting for 6% to 8% of global total output. Public information shows that the main products of well-known chemical companies in Jubail Industrial Zone include basic chemicals (ethylene, propylene), polyurethane, polyethylene, polypropylene, and others. From the perspective of A-shares, companies such as Huafeng Chemical, Huid Technology, and Meirui New Materials all have polyurethane-related production capacities.

A staff member from Huid Technology’s Securities Department responded that the company had already raised prices for polyurethane in March, mainly due to rising crude oil prices. There are no plans to increase prices in April for now. The company’s polyurethane is mainly used in synthetic leather, automotive accessories, and other fields, with relatively stable downstream demand. Price increases for the company’s products are relatively easy to pass downstream, representing rigid transmission, and there may be some inventory accumulation downstream.

An insider from Huafeng Chemical told reporters that the company is one of the largest domestic producers of polyurethane raw liquids, mainly serving footwear companies. Additionally, the company’s polyurethane raw liquids for products can also be used in manufacturing low-speed tires, high-speed rail pads, sports equipment, furniture, memory pillows, 3D printing, and new energy batteries. Recently, due to rising raw material prices, the prices of the company’s polyurethane raw liquids have fluctuated, which may have some impact on related downstream products.

Meirui New Materials responded to reporters that the company’s polyurethane products mainly include TPU and special isocyanates, with broad downstream applications such as electronic injection molding, films, pipes, and coatings. Affected by upstream raw material price increases, the company has recently raised product prices and will adjust them in a timely manner based on raw material price fluctuations and market supply conditions. Another listed company admitted that downstream demand for polyurethane and corporate situations are relatively complex. For domestic listed companies, overall downstream demand remains stable. (CITIC Securities Taurus)