Nitrochlorobenzene companies reduce output and reduce production

The nitrochlorobenzene market, which has maintained its upward trend for the past three months, has fluctuated sharply in recent days. The mainstream transaction price of nitrochlorobenzene suddenly dropped by 1,100 yuan (ton price, the same below) on October 8 and fell to 5,500 yuan. It dropped to 5,200 yuan in mid-October, setting a new low this year; o-nitrochlorobenzene also fell to 7700. Yuan, a drop of 6%. After comprehensive cost accounting, all domestic companies have entered a deficit state and started to reduce production and reduce the burden on a large scale. In late October, due to severe reduction of nitrochlorobenzene, there was a gap in the market. In some areas, high-end prices rebounded to more than 5,500 yuan, and high-end quotations even reached 6,000 yuan. They rebounded in the short-term and formed a large shock market. However, due to high costs and continuous losses, some supporting manufacturers in the south have considered discontinued outsourcing. Affected by the current downstream mentality differentiation and negative corporate negatives, it is expected that the market will continue to fluctuate in the near future.

- The shrinking demand led to the sudden drop of the market began at the end of September, the international turmoil caused internal and external disk suspension, the domestic ** market continued to decline, as of mid-October decline of 9.4%. Nitrochlorobenzene companies have seen negative sentiment in their bearish tone and passively cut prices. At the same time, nitrochlorobenzene as an important intermediate product in the dyes, pharmaceuticals, auxiliaries and other industries, many of its downstream products once there is a price-free market situation, the demand has shrunk dramatically, some SMEs have been discontinued or half of the majority of the time since the second half of the year In the state of production suspension, the overall demand for nitrochlorobenzene has continued to decline. According to incomplete statistics, as of mid-October, the total demand for nitrochlorobenzene fell by more than 15%, which was one of the major negative factors that caused the sudden and significant market decline.

In recent years, the direct export volume of nitrochlorobenzene has not been greatly improved, mainly through indirect exports of downstream derivatives, such as p-nitroaniline, p-phenylenediamine, o-nitroaniline, o-phenylenediamine, p-aminobenzene Methyl ether, o-anisidine, p-aminophenol, o-aminophenol, 2,4-dinitrochlorobenzene, 3,3-dichloroaniline and other intermediate species, as well as terminal dyes, pharmaceuticals, pesticides, additives etc. Since the second half of the year, affected by the sharp fluctuations in crude oil prices and the weakening of the international economy as a whole, the export volume of downstream products has shrunk dramatically. Individual products have even experienced zero orders. This has greatly affected the domestic consumer market of nitrochlorobenzene, which is also nitrochlorine. One of the reasons why benzene companies are forced to cut output and reduce their revenue.

——High cost has forced the company to reduce production Currently, about 80% of the main raw materials used by nitrochlorobenzene enterprises are coking benzene series, which is affected by the limited output of coking companies, and the price of coking benzene is always at a relatively high level, although recently It was downgraded, but the magnitude of its downward adjustment was much lower than that of p-nitrochlorobenzene. 30% of domestic nitrochlorobenzene enterprises adopt the production route starting from chlorinated benzene, and the decrease in chlorinated benzene is far lower than the decline in nitrochlorobenzene, and there is an unbalanced adjustment in the entire industry chain. As a result, nitrochlorobenzene companies have always been unable to escape the current high cost of the status quo, companies are forced to significantly reduce production and reduce the burden. It is reported that major manufacturers such as Zhejiang Changshan Chemical, Jiaxing Zhonghua and Liaoning Shixing are considering whether to stop the installation and purchase nitrochlorobenzene to reduce losses based on the current high cost situation.

——The capital tension has dragged the market. In recent days, many companies have experienced tensions in the capital chain, and SMEs have even worsened. Some chemical companies in Jiangsu, Hebei, Shandong and other provinces reported that due to the shortage of liquidity, they turned to private lending. However, based on the current product structure with a very low profit margin, coupled with high interest expenses, corporate costs are higher. Some companies have suffered continuous losses and are forced to stop production. Such as Hebei, Inner Mongolia, Jiangsu, Henan, Zhejiang and other places, 2,4-dinitrochlorobenzene enterprises have a large-scale production or production cuts, other para-nitroaniline, o-nitroaniline, p-aminoanisole, o-aminobenzol Ether, p-aminophenol and other companies are also in a half-open semi-state, dragging down the entire nitrochlorobenzene market sharp shock adjustment.