The hottest ethylene price soars, downstream manuf

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Ethylene prices soar downstream manufacturers change business model

as one of the basic chemical materials, ethylene, due to its wide range of uses, its price fluctuations have no less impact on the downstream than steel, copper and other metal raw materials

Xinjiang Tianye, whose main profits came from chemical products and plastic products, took the initiative to change its business strategy because of the large fluctuations in ethylene prices. The main raw material of agricultural film and greenhouse film produced by Xinjiang Tianye is polyethylene, which is made of ethylene. Raw materials such as polyethylene, polyvinyl chloride, industrial salt and pyrite account for about 60% of its manufacturing cost. A person in charge of the company's Board Secretariat told yesterday that ethylene prices fluctuated significantly during the financial crisis. In order to reduce risks, the company adopted the mode of processing with supplied materials after the financial crisis and only earned processing fees

this mode has continued until now, and Xinjiang Tianye is glad to have adopted this mode earlier. According to the data of Shenyin Wanguo, it can provide excellent toughness, transparency and elasticity for medical films and pipes during the financial crisis. The average ethylene price in Asia was $1152/ton in 2008, fell to $857/ton in 2009, and rose to $1264/ton in the first quarter of 2010

Guofeng plastic, another listed company with plastic film as its main business, did not adopt the processing mode of incoming materials. Its profit was 4.6263 million yuan in 2008, but there was a loss of 133.3661 million yuan in 2009. A person in charge of Guofeng plastics' Board Secretariat told this newspaper yesterday that the company's current raw material is mainly polypropylene, which mainly produces plastic such as food packaging. Previously, it also used polyethylene to produce agricultural film. Since then, it has adjusted its product structure and no longer purchases polyethylene raw materials

Lianhe business analyst Li dunyu told yesterday that the ethylene price has risen from the low point of more than 800 US dollars/ton last year to more than 1300 US dollars/ton at present

last week, the ex factory prices of domestic spot enterprises were adjusted to varying degrees, with the price increase range of 100 per ton ~ 300 yuan per ton. The growth of China's plastic machinery industry has ushered in the golden period of Kemen's growth and rapid growth

as a basic chemical raw material, ethylene is widely used in household appliances, automobiles, it and other industries. Due to the large increase in demand and the shortage of ethylene production capacity, Sinopec and PetroChina have launched several large-scale ethylene projects in China in recent years

in 2010, the price of polyethylene and polypropylene increased by about 15% in addition to ordinary computers. Zhu Fang, deputy director of the information and marketing department of the China Petroleum and Chemical Industry Federation, previously predicted that the apparent consumption of ethylene in China would increase by about 13% in 2011. Li dunyu believes that ethylene prices will continue to rise this year

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