What are the trends in energy storage materials?
According to my understanding, energy storage refers to the use of physical or chemical methods, the use of physical or chemical methods, the generation of electricity will be stored first, and when needed to release the technology. Energy storage is a key way to ensure the stability of new energy power system, is currently one of the main trends in the development of new energy industry.
The country has taken the lead in releasing a lot of policies on energy storage with knowledge from a very early stage, for example, in December 2011, the National Energy Administration issued the twelfth five-year plan, focusing on mentioning the layout of the energy storage industry, focusing on the research and development of energy storage technology. released in March 2016, the energy storage and distributed energy is included in the thirteenth five-year plan major development projects. in September 2017, the Development and Reform Commission jointly issued the first on the energy storage industry Development of guiding recommendations. 2020 June Energy Bureau requirements to increase the development of energy storage, and actively explore the application of energy storage in renewable energy and so on. 2022 March, the NDRC issued fourteen five energy storage development and implementation programme, the requirements of energy storage in the development of an important role in the dual-carbon goals. Therefore, the development of energy storage technology is always one of the key industries supported by the state.
According to the type, the energy storage industry can be divided into mechanical energy storage, electrochemical energy storage, hydrogen energy storage, thermal energy storage categories, of which mechanical energy storage can be divided into pumped storage, compressed air energy storage, gravity energy storage. Electrochemical energy storage can be divided into lead-acid battery energy storage, lithium-ion battery energy storage, sodium-ion battery energy storage, liquid flow battery energy storage. Thermal energy storage is currently dominated by lava energy storage technology.

According to relevant data, pumped storage is currently the largest share of global energy storage types, accounting for about 90.3% of the total energy storage. Next is electrochemical energy storage, accounting for about 7.5% of the global energy storage types, of which lithium-ion battery energy storage is the largest type of electrochemical energy storage, accounting for about 92% and more of the total electrochemical energy storage.
Therefore, for the development direction of electrochemical energy storage, but also for the main application direction of new chemical materials, according to the current industry development trend, sodium-ion batteries and liquid current batteries are the main development trend of electrochemical energy storage in the future. Because of its sodium ion in the global market there is a large storage space, belongs to one of the five elements, so the sodium ion battery by the industry is widely concerned.
I. Development trend of sodium-ion battery
Sodium ion battery related materials are as follows: sodium salt (sodium carbonate, sodium bicarbonate, sodium acetate, sodium oxalate, sodium citrate, sodium nitrate, sodium hydroxide), positive electrode materials (a total of more than 100, metal oxides, polyanionic compounds, and Prussian blue compounds system), anode materials (hard carbon, soft carbon, titanium oxides and alloys, etc.), diaphragm materials (ultra-high molecular weight polyethylene diaphragm, fluoropolymer diaphragm, cellulose diaphragm, composite diaphragm, etc.), electrolyte (carbonate, ether, aqueous electrolyte, ionic liquid electrolyte, solid polymer electrolyte, sulfide solid electrolyte, etc.).
According to my understanding, at present, due to the sodium-ion battery energy density is lower than lithium-ion batteries, and the cost difference is not large, can not yet replace lithium batteries, while sodium-ion batteries industrialisation and development of the stability of the need for time to verify. Therefore, the sodium-ion battery industry chain is still immature, the industry is in the early stages, if the degree of industrialisation is improved, it will bring further cost advantages of scale.
Second, the development trend of flow battery
Liquid flow battery is a large-scale high-efficiency electrochemical energy storage device, liquid flow battery will reactive substances stored in the electrolyte solution, can achieve the separation of electrochemical reaction and energy storage site, making the battery power and storage capacity design is relatively independent, suitable for large-scale power storage energy storage needs. The positive electrode and negative electrode of the liquid flow battery are stored in the form of electrolyte solution in the external tank of the battery, and the mutual conversion of electric energy and chemical energy is achieved through the reversible redox reaction of the active substances of the electrolyte solution at the positive and negative electrodes.
Fluid flow batteries are more suitable for large-scale storage, have higher safety and deep discharge performance, and the number of cycles of liquid flow batteries is significantly higher than that of lithium-ion batteries. However, at present, the cost of the liquid flow battery is higher, the price of ion membrane exchange is higher, the volume is larger, and the energy density of the battery is low.
According to the survey, the functional materials of the liquid flow battery are bipolar plates, electrodes, diaphragm and electrolyte. Bipolar plates (graphite plates), electrodes (carbon felt, graphite felt, organic loading, carbon material electrode functional group modification, etc.), cationic diaphragm (fluorosulfonic acid resin membrane, sulfonated polyether ether ketone membrane, etc.), anionic diaphragm (polybenzimidazole membrane, etc.).
2022 energy storage liquid current battery due to the high system price, industrial supporting imperfections and other constraints, the overall market installed capacity is still at a low level. At present, the domestic liquid current battery market is not high, in the demonstration project stage, and the number of demonstration projects is much lower than lithium-ion battery. Liquid current battery technology route has a more obvious bias to the highest degree of commercialisation of all-vanadium liquid current battery. Compared with lithium resources, China’s vanadium reserves are abundant, providing sufficient raw materials for widely used all-vanadium flow batteries, which is conducive to safeguarding national energy security.
Third, the development trend of hydrogen energy storage
Another major development direction for hydrogen energy storage, hydrogen energy storage is a new type of energy storage, in the energy dimension, time dimension and space dimension has outstanding advantages, can play an important role in the construction of new power systems. Hydrogen energy storage technology has been developed by utilising the inter-changeability of electricity and hydrogen energy. Hydrogen energy storage can store both electricity and hydrogen and its derivatives (e.g. ammonia, methanol).
Hydrogen energy storage has outstanding advantages in energy dimension, time dimension and space dimension compared with other energy storage methods, and can play an important role in long-time energy storage. During the trough period of electricity consumption, hydrogen can be produced by electrolysis of water using the surplus new energy electrical energy in the trough period and stored or used by downstream industries. During peak periods of electricity consumption, the stored hydrogen energy can be used to generate electricity using fuel cells and be fed into the public grid.
As hydrogen storage batteries have certain outstanding advantages in the latitude of capacity, time and space, they can play an important role in long-time energy storage. According to IEA data, the total global hydrogen production reached 98.13 million tonnes in 2022, a year-on-year increase of 5.5%, and the production is expected to reach 179.98 million tonnes in 2030, with rapid industrial development. The main industry chain of hydrogen energy storage can be summarised as “hydrogen production, hydrogen storage and transportation, hydrogen refuelling, hydrogen conversion” and so on.
The core materials of hydrogen fuel cell include positive electrode material (graphite), negative electrode material (graphite), electrolyte (solid ceramic material such as zirconium oxide), etc.
What is the future development pattern of global new energy battery?
I see that by the rapid development of new energy vehicles, energy storage market, many countries around the world are actively promoting the development of new energy battery industry, in which the lithium battery industry as the main representative, solid-state batteries, sodium-ion batteries and hydrogen fuel cells, etc., will be fast to the market. It can be said that the global new energy battery is booming, it is expected that by 2030, the global demand for lithium batteries will reach 4TWh.
China, as the fastest growing country in the global lithium battery industry, has always been the leading change agent in the lithium battery industry market. Europe and North America are also actively driving the rapid development of the local new energy battery industry in order to achieve emission reduction tasks, as well as the transformation of energy structure. Southeast Asia, India and the Middle East market, as an emerging market for global new energy demand, has entered a stage of rapid development, and actively participate in the global new energy battery supply chain system. It can be said that, globally, China’s new energy battery industry chain still plays a leading role, but also faces fierce competition and great challenges at the same time.
From a global perspective, the current global competition in new energy countries, mainly China, Japan, South Korea, Europe, the United States, Southeast Asia and the Middle East for the new energy market competition. These countries have introduced plans for the sustainable development of the new energy battery industry chain, and through the influence of relevant policies and regulations, to drive the rapid development of the new energy market in their own countries.
(A) China has included the development of new energy industry in the top-level planning, creating a brilliant high-speed development.
China’s market, as early as 21 actual put forward the development of energy-saving and new energy vehicles ideas, and from 2006, has been included in the development of new energy industry in the national medium- and long-term scientific and technological development plan, on the development of the new energy industry, the country has been included in the top-level development design and planning, launched a series of policies for the development of the electric vehicle and power battery industry, thus laying the foundation for the development of China’s new energy battery industry. China’s new energy battery industry development foundation. Until 2020, the State Council triggered the “New Energy Vehicle Industry Development Plan (2021-2035)”, which put forward the basis for the development of the lithium battery industry, strengthen the construction of recycling system, and promote the development of the new energy industry chain, so China’s new energy industry ushered in a wave of high-speed development, and it is still in the high-speed development stage.
According to the Boston Consulting Group forecast, it is expected that China’s demand for lithium batteries will grow at an annual rate of more than 40% to 1TWh by 2025; and will grow at an average annual rate of 13% to about 1.8TWh by 2030, of which the demand for power batteries has been maintained at more than 75%. Power battery is the main market for China’s lithium battery demand and the main driver of China’s new energy industry development.
(ii) U.S. Aims to Enhance Supply Chain Capacity of Local Trading Partners
For the U.S. market, Biden returned to the Paris Agreement after coming to power, and began to implement the Inflation Reduction Act from 31 December 2022, making clear requirements for the source and origin of core minerals and components in batteries, with the aim of enhancing the capacity of the U.S. indigenous supply chain and improving its own supply level. In addition, the United States for the new energy industry chain for the development and replacement of core materials, included in the United States national lithium development blueprint planning, which includes guaranteeing the supply of key materials and replacements, the establishment of raw material processing base, the establishment of the core component manufacturing base, as well as the establishment of lithium battery recycling system, etc., the U.S. is through the policy bill to support and enhance the new energy industry chain of all links in the supply of matching to improve their own Supply capacity.
Under the support of the policy, the U.S. new energy industry has seen a rapid increase in new energy vehicles is expected to 2030, the penetration rate will reach 45%, the demand for power batteries will be more than 500GWh. The U.S. new energy batteries are mainly supplied from the production of their own supply, shortfalls from the supply of Japan and South Korea, Japan and South Korea and the U.S. in the field of new energy batteries in the trade and cooperation is very close. China due to policy restrictions, temporarily failed to enter the U.S. market.
(C) the EU is the most complete new energy battery policy system of the country
I see that as early as 2017, the EU has formed a battery alliance to coordinate the new energy battery supply chain and industrial resources within the EU, aiming to form a synergy to serve the new energy industry within the EU, and has successively released the Battery Strategic Action Plan, the Green Deal Industry Plan, the Net Zero Industry Act, the Critical Raw Materials Act and many other policies. In these bills, it is stipulated that the EU’s local battery manufacturing capacity will reach 550GWh by 2023, and raw materials and mineral resources are required to come mainly from the EU’s local mining, processing and recycling, so as to comprehensively build the EU’s local supply chain system for clean energy and batteries. In addition, from 2024 onwards, the EU has begun the carbon footprint of new energy batteries, battery passport, supply chain due diligence work, for new energy batteries in the production of responsibility and carbon emissions have made clear provisions.
The EU’s carbon reduction mandate for the new energy battery industry has driven the development of the local new energy industry, and it is expected that the penetration rate of new energy vehicles in the EU will reach 60% by 2030, and the demand for power batteries will reach 800 GWh. It is expected that the EU will mainly be supplied by local enterprises, and it is difficult for external enterprises to enter the EU’s new energy supply system.
(D) Japan and South Korea’s new energy battery industry started earlier, but slow development
Japanese battery enterprise market development in South Korea after the market share is gradually shrinking, the Japanese government to achieve carbon neutral goals and to cope with the possible future demand for renewable energy, the successive introduction of the “2050 Carbon Neutral Green Growth Strategy” and “Energy Basic Plan”, as the top-level design of the development of Japan’s new energy industry. The Japanese government plans to 2030, Japan’s domestic battery production capacity will reach 150GWh, Japanese companies in the global production capacity of 600GWh. And, at present, Japan is in the full research and development of solid-state batteries, plans to 2030 to achieve the industrialisation of solid-state batteries, Japan hopes that solid-state batteries drive to achieve the bend.
I see, South Korea is also actively responding to the globalisation of new energy development trend, released the “2030 secondary battery industry development strategy” and “rechargeable battery industry innovation strategy”, and clear planning to 2030 South Korea’s new energy battery accounted for 40% of the global battery market share. In order to achieve this goal, South Korea through a variety of ways to pull the capital, promote enterprise innovation and the development of new energy battery industry drive. South Korea’s new energy battery industry is developing rapidly, and in the future may become the world’s most important new energy battery production countries.
Finally, I would like to say, the world’s major countries are actively developing new energy batteries, Japan hopes to achieve solid-state batteries to overtake, South Korea’s main drive to the development of new energy battery production scale, the United States and the European Union, mainly internal supply of their own, hoping to achieve a balance of the local through their own supply, and China is not only in the scale of new energy batteries on the power, but also in the technology development and innovation are leading the world. Therefore, in the future, I believe that China will be the largest producer and consumer of new energy batteries, and China’s new energy industry will continue to lead the world for a long time to come.
What are the new materials and chemicals in the wind power industry?
In my opinion, wind power is one of the most promising renewable energy sources in China. Wind power is sustainable and low carbon and clean, widely distributed, flexible in installation and dismantling, and has less ecological impact. And, according to the current carbon emission cycle of the wind power industry, compared to the carbon emission cycle of clean energy, wind power is the lowest average carbon emissions of photovoltaic, thermal power, hydropower, nuclear power, gas power, coal power generation type.
It is also due to the many advantages of wind power, driving the rapid development of the wind power industry. According to the National Bureau of Statistics, by the end of 2022, China’s cumulative installed capacity of wind power amounted to 370 million kilowatts, a year-on-year increase of 12.8%, accounting for 13.5% of China’s total installed capacity. According to the “14th Five-Year Plan” Renewable Energy Development Plan, “14th Five-Year Plan” Modern Energy System Plan and other documents, by 2025, the renewable energy generation capacity reached 3.3 trillion kWh, and the wind power generation capacity was doubled compared to 2020, i.e. over 564 million kWh.
It can be said that the wind power industry is the wind vane of the development of China’s new energy industry, the rapid development of the wind power industry, driving the demand for new materials and chemicals in its industrial chain of rapid growth. So, what new materials and chemicals will be used in the wind power industry?
According to my combing, wind power industry, will be used in chemicals and new materials and components, there are the following: blades, blade moulds, core materials, structural adhesive, wind motors, marine cables, land cables, tower, wind castings, etc., of which the wind blade is the core component of the wind power generation device, accounting for more than 20% of the total cost.
(A), wind blade material composition
Wind turbine is a power generation device composed of blades, transmission system, generator, energy storage equipment, tower and electrical system. The blade is the core component of the wind turbine to capture wind energy, and its aerodynamic performance directly affects the power generation efficiency of the whole system as well as the service life of the hub and other key components.
The key to obtaining greater wind power lies in having blades that can rotate quickly, so the design of the blades and the choice of materials are always the focus of the wind power industry. According to the network information, the cost of wind blade composition, in which the matrix resin accounted for 36% of the cost structure, reinforcing materials accounted for 28% of the cost structure, followed by binder, metal, coating, core material and other auxiliary materials. So for wind turbine blade materials, the choice of matrix resin is the key element to determine the cost of blade materials and their quality.
I According to the survey, glass fibre reinforced plastic is one of the most widely used wind turbine blade materials, with light weight, high strength, excellent corrosion resistance, and relatively low cost, compared with the traditional steel blade, the manufacturing process and cost of glass fibre blade is more mature, as well as widely used in wind farms.
Epoxy resin is now widely used in wind turbine blade materials. Epoxy resin is a high-performance material with excellent mechanical properties, chemical stability and corrosion resistance. In wind turbine blade manufacturing, epoxy resin is widely used in the structural parts, connections and coatings of the blades.
In the supporting structure, skeleton and connectors of the blade, epoxy resin can provide high strength, high stiffness and fatigue resistance to ensure the stability and reliability of the blade. Epoxy resin can also improve the blade’s wind shear resistance and impact resistance, reduce the blade’s vibration noise, improve wind power generation efficiency.
At present there is also the use of epoxy resin and glass fibre modified curing, is directly applied in the wind power blade materials, can improve the strength and corrosion resistance and so on.
Figure 2 Wuwei City, Liangzhou District, wind power equipment production enterprise site map
In addition, carbon fibre is also applied in the wind power blade material products, carbon fibre composites have higher strength, lighter weight and better corrosion resistance, so compared with glass fibre, it is more suitable for the production of large-scale advanced blade. At the same time, carbon fibre composites can improve the service life and reliability of blades due to their better fatigue and self-healing properties during use. However, carbon fibre has the disadvantage of high cost and can only be used in areas with increasingly harsh environments, which can reduce the market for glass fibre use.
For other materials for wind turbine blades, such as bio-based nylon 56, nylon 66, polyurethane resins, nanocomposites, bio-based composites, and high-end wood, these materials have also been used in the materials for wind turbine blades. These materials have more environmentally friendly characteristics, as well as adaptability in special environments and so on. And, at present, the industry are actively researching alternative materials for wind turbine blade materials, and the future development trend in the field of blade materials is large-scale, lightweight, and more stringent environmental adaptability and other directions.
In the wind turbine blade materials, epoxy resin applications also need to use curing agents and accelerators and other chemical products, typical products for the polyether amine, used in the matrix epoxy resin curing and structural adhesive, with low viscosity, longer applicable period, anti-aging and other aspects of the excellent overall performance, has been widely used in wind power, textile printing and dyeing, railway anticorrosive, waterproofing of bridges and ships, petroleum and shale gas mining and other fields, polyether amine downstream As wind power accounted for more than 62%. It should be particularly noted that polyether amine belongs to the organic amine epoxy resin curing agent.
In addition, there are other materials are used in the field of wind turbine blade epoxy resin curing agent, such as isoflurane diamine, methyl cyclohexyl diamine, methyl tetrahydrophthalic anhydride, tetrahydrophthalic anhydride, hexahydrophthalic anhydride, methyl hexahydrophthalic anhydride, methyl p-nitroaniline and so on. The products with high performance are isophorone diamine and methyl cyclohexyl diamine, which have excellent mechanical strength, suitable operation time, low curing exotherm and excellent operation of the infusion process, and are applied in the epoxy resin and glass fibre composites of wind turbine blade materials. Acid anhydride curing agent belongs to the heating curing, more suitable for wind turbine blade beam pultrusion moulding process.
(B), the core material material composition
Core material is sandwich structure composite material inside, play a role in maintaining the stability of the equipment, reduce the weight while enhancing the stiffness, the current has been used PVC core material and light wood for use with. According to Huaan Securities report shows that, due to the PET foam also has the strength of high-quality lightweight features, and the comprehensive performance is better than PVC foam, heat resistance is better than PVC, has the advantages of strong plasticity, easy processing, lower production costs, while easy to recycle, in recent years, PET foam instead of PVC foam to form a trend.
(iii) Other materials for parts
Structural adhesive: epoxy resin adhesive is suitable for most of the material bonding, high strength, good temperature dielectric properties, corrosion resistance and aging resistance, has long been the mainstream of the blade structure adhesive, short-term no alternative materials. Epoxy resin adhesive also need to sky machine and accelerator, also more for polyether amine and anhydride products.
Carbon fibre raw silk solvent: dimethyl sulfoxide (DMSO) is the main solvent in the carbon fibre raw silk spinning process, the raw silk performance plays an extremely critical role. Each ton of PAN carbon fiber filament consumption of 0.5-1 tons of Dimethyl Sulfoxide, with the growth of carbon fiber consumption volume, the consumption of Dimethyl Sulfoxide will also show a rapid growth trend, and irreplaceable.
Casting resin materials: according to relevant information, grouting resin is mostly furan resin, which is used in the wind power industry in the hub, base, fixed shaft parts (including stator spindle, etc.), gear box parts (including planetary frame, box, etc.), etc., the most widely used in the wind power industry, and has no substitutability. At present, the leading furan resin enterprise in China is Shengquan Group.
Materials for cables: At present, the transmission of wind power generation is sea and land cables, mostly ultra-high voltage transmission cables, mostly XLPE and PVC cable materials, and there is no other product substitution for the time being.
Finally I would like to say, about the wind power industry with related materials and chemicals, will be with the wind power industry’s rapid development and drive consumption of rapid growth, is one of the fastest growth rate of China’s chemical consumption, but also choose to invest in the chemical project is an important consideration of the direction and trend.

 

Why does every round of stimulus bring overcapacity?

China’s chemical market from the second half of 2022 began a “bear market”, has continued to fall for nearly 8 months, during this period, many Chinese chemical market prices have fallen significantly, from last year to the middle of this year’s commodity prices fell, bringing a huge impact on China’s economy, although some of the current product price Although the prices of some products have risen, the consumer market has not fully recovered in the long run. The chemical market has an extremely important position in the national economy, which is one of the foundations of China’s economic development. The weakness of the chemical market is not only driven by the weak economic development, but also the overall impact on the industry chain.
This round of continuous decline in chemical market prices, has shown the economic crisis during the Chinese chemical market performance of the “weakness”. In my opinion, the risk of this round of chemical price decline has been seriously underestimated by the market. This round of price decline, more from the peripheral market weakness of the Chinese market direct impact, which the North American consumer market weakness, and China’s supply side continues to expand, in the chemical industry chain to form a “top and bottom of the attack”, chemicals do not fall are difficult.
2020 global new crown epidemic, China and the United States adopted a completely different strategy. The United States is to give each family issued a bailout subsidies, issued a total of 2 trillion U.S. dollars, used to stimulate demand and boost consumption, brought about by price increases, including chemical prices. China, on the other hand, is expanding monetary policy and finance, that is, stimulating investment, increasing infrastructure investment and manufacturing, which brings about a significant increase in the output of products, which in turn increases exports in exchange for dollars.
By the end of 2022, the U.S. consumer stimulus policy cooling, resulting in prices began to fall. And the cooling of the U.S. consumer market, brought about by China’s exports are blocked, turn to the product in the domestic sales, which in turn increased the domestic supply conflicts, resulting in a decline in product prices. It can be said that this round of price decline is China and the United States to take different policies to bring the “aftermath”.
Of course, this is also the “aftermath”, if we can form a prediction in the early stage of the market price decline, then can we avoid this round of long-cycle price decline? The answer is no, because the formation of the main pushers of the price decline, more from the peripheral consumer market weakness, resulting in China’s exports fell from the consumer side of the industry chain to form a negative force, is likely to affect the most lasting factors. And the peripheral market weakness, this point at least the Chinese market can not control.
From the end of the epidemic in China to now, there has been six months, we are looking forward to the unsealing of the movement of people brought about by the growth of consumption, China did do. What can be seen from the logistics data, the number of travellers and other statistics is that the Chinese economy was indeed very active in the first half of this year, which played a very important role in boosting China’s domestic demand. In my opinion, the Chinese government should have formed a very clear prediction as early as last year, otherwise it would not have put forward the important strategic plan of “internal circulation” as the mainstay and “external circulation” as a supplement.
It has also been said that this round of chemical price decline, more from the North American consumer market downturn brought about by the impact. At present, this impact lasts longer, the global supply chain system has formed a more obvious impact, especially the Chinese market. Foreign trade orders shrink, not only for the impact of foreign trade industry, China’s supply chain system is a large synergistic network, one end of the imbalance, the other end will inevitably also be out of balance.
For the consumer market downturn, all the government can take is to stimulate. But every time the market is stimulated, what it brings is mostly overcapacity.
In 2009, 4 trillion yuan to save the world, the country to build high-speed rail, underground, the rise of local urban investment, building roads and bridges to build housing. But by the second half of 2011, large-scale investment in the upstream triggered overcapacity and high inventories, and the PPI fell rapidly. the global stimulus recession in the second half of 2014 brought about a plunge in international oil prices and the prices of staple chemicals and some chemical products, and the PPI fell further, and by 2015, the PPI fell to -6%.
Why is it that every stimulus, brings overcapacity? Is this round of consumer market weakness still the result?
I think the essence of this is a misjudgement of the consumer market. If price rises are brought about by stimulating the consumer market through the issuance of a large amount of money, this in itself is unhealthy, which will make enterprises mistake it for a strong demand and thus take the wrong decision of expanding production capacity.
In terms of US policy, if demand is stimulated by issuing money, it does create a demand stimulus for a short period of time, but this will lead to inflation and the formation of more demand bubbles, and if the monetary stimulus is once stopped, it will bring about the bursting of bubbles, but the growth in production capacity is real. In terms of China’s policy, spending all the money on upstream investment brings more supply capacity growth, but if there is a lack of downstream consumption capacity, then oversupply will also be more likely to occur.
I see from the comparison of consumer stimulus policies in the past few years, after each round of consumer stimulus, it brings more of a price drop.
According to the above theory is not difficult to see, the essential reason for this round of price decline, or focus on the consumer market, which may be the key to the theory of the chemical market cycle. As long as prices fall, production enterprises do not dare to hoard large quantities of inventory, traders do not dare to hoard large quantities of goods, logistics, transport enterprises are still constantly lowering freight rates to solicit business, investment enterprises do not dare to invest blindly, thus affecting the overall macroeconomic operation.
At present, the industry is more concerned about, is this round of chemical prices can fall for how long? I believe that the consumer market is unlikely to rise in a short period of time, still need more consumer stimulus, as well as the U.S. consumer market consumption is expected to be uncertain, is expected to still have a few months of possible down time, it is recommended that China’s chemical production enterprises and related industries to be cautious.