Recently, the global situation is in a state of tension. In a statement, the G7 countries said they are considering a global embargo on Russian oil and petroleum products unless there is a purchase price equal to or lower than the price negotiated with international partners, according to Rosatom.

The news sparked heated discussions in the market. A total global ban on Russian oil and its products would exacerbate the already tight supply of raw materials and even lead to the risk of skyrocketing unemployment and industrial collapse in countries that depend on imported energy, such as those in the European Union.

The previous gas force majeure forced EU member states to cut gas usage by 15% from August 1, 2022 to March 31, 2023. If the global embargo on crude oil and its products will lead to a number of global companies out of stock and production, chemical raw materials may again climb to higher levels than ever before. Previously, Germany reported that about 32% of energy-intensive companies have been forced to cut all or part of their production.

The crude oil industry chain is involved in a wide range, this ban once issued, or cause the entire chemical industry chain “earthquake”.

Into August, Dow, Cabot and other manufacturers have also issued a price increase notice, chemical raw materials up to 6840 yuan / ton.
From August 1, Yuntianhua Group will increase the price of all grades of Yuntianhua polyformaldehyde (POM) products, an increase of 500 yuan / ton.

On August 2, Yankuang Luhua increased the price of all paraformaldehyde products by RMB 500/ton, and also plans to continue the increase on August 16.

Ltd. will increase the price of epoxy plasticizers from August 5, the specific rate of increase for epoxy linseed oil rose 75 yen / kg (about 3735 yuan / ton) or more; other epoxy plasticizers rose 34 yen / kg (about 1693 yuan / ton) or more.
From September 1, Japan’s well-known plastic company Denka will increase the price of neoprene “Denka chloroprene”. The specific rate of increase for the domestic market up 65 yen / kg (3237 yuan / ton) or more; export market up $ 500 / ton (3373 yuan / ton) or more, exports 450 euros / ton (3101 yuan / ton) or more.
Upstream price increases have been transmitted to the downstream, the automotive industry chain again because of the upstream raw material prices, chip shortages and other reasons collective price increases.
The current international situation is complicated. With the escalation of sanctions against Russia in Europe and the United States, international crude oil continues to hover at high levels, coupled with central banks continue to raise interest rates, global inflation is gradually increasing.
Global oil inventories are expected to be low in the second half of the year, and with OPEC+ production increases not expected and remaining capacity tight, crude oil supply and demand will tend to be in balance. If the G7 insists on imposing a “global ban” on Russia, the probability of a rise in crude oil increases. At that time, oil industry chain-related products may be warmed up, but downstream demand is still in a sluggish state, and prices are expected to be inflated, so you should be cautious in purchasing

Chemwin is a chemical raw material trading company in China, located in Shanghai Pudong New Area, with a network of ports, terminals, airports and railroad transportation, and with chemical and hazardous chemical warehouses in Shanghai, Guangzhou, Jiangyin, Dalian and Ningbo Zhoushan, China, storing more than 50,000 tons of chemical raw materials all year round, with sufficient supply, welcome to purchase and inquire. chemwin email: service@skychemwin.com whatsapp: 19117288062 Tel: +86 4008620777 +86 19117288062