The price of grease risen in China during this period

Base oil rises substantially, all lubricating grease product price continues to go high

The price of high temperature grease often depends on the base oil in China. In recent days, just after the Spring Festival, China's basic oil prices have soared. Following the gradual rise of base oil at the end of last year and the announcement of the four major international lubricating oil additive companies to raise prices across the board, the spring of 2021 ushered in an extraordinary general rise in base oil prices.

The first round of 2021 saw a broad rally in the base oil market. The rally was so rapid and the price increase was bigger than many people had expected.Even when many grease industry bosses are still immersed in the atmosphere of the New Year, it has been very rapidly rising.

It is true: the price of basic oil has risen long before it can be officially opened many years later.After the year, this round of base oil prices soared, regardless of whether the downstream manufacturing bosses opened or not, and do not tell people the reason for the rise, the beginning of spring has just passed the fifth day of the Chinese New Year, directly a large rise, looking at a red.Rise rise range makes ordinary person by surprise, think look wrong. Oil prices before the beginning of the year, and after the spring of the product price cost, has been completely different.A boss who stocked up before last year might be able to offer it to customers at prices that did not increase last year.However, when the inventory is gradually sold out and the stock is replenished again, it will be found that it can not return to the previous price.A rising tide lifts all boats, and no one can resist the current surge in base oil.

Some friends have seen some base oil prices go up by 20% in just 8 days or so.

After three go up five go up, after five go up.....

Many practitioners expressed surprise.

So just after the Spring Festival, why did the basic oil price go up so much and so much in just ten days?

As for base oil, base oil prices in various regions are generally increased after the holiday. On the one hand, the increase is due to the positive change of crude oil. Up to today, the increase rate is 5%, and the cost pressure is increasing sharply.On the other hand, the refinery is currently low in inventory or the goods have been locked in advance, the market spot resources are relatively few, and the refinery has sufficient potential to rise in price.The first working day after the Spring Festival base oil prices rose an average of 200-400 yuan/ton, which is mainly affected by continuous push up international oil prices drive rising costs, and before the Spring Festival people bullish sentiment for market price is higher, the basic contract will be booked, led to a number of refinery inventories continued low, to support after the price have rise space.

international oil prices continued to rise above $60, hitting a 13-month high

On February 18th, the price of Brent crude oil broke through $65 per barrel in Asian trading, the first time since January 2020. So far, international oil prices have recovered modestly, with Brent at $62.82 / barrel and WTI at $59.3 / barrel.

    Mobil Corp.,Valero Energy Corp.and Total Petroleum Corp. slashed crude oil production as widespread disruption from the cold pushed oil prices to their highest levels so far this year.At least 2.6 million barrels have been confirmed completely shut down, with a total of about 5.9 million barrels of refining capacity in status.

Motiva Enterprises, North America's largest refiner, said it would close its Port Arthur refinery in Texas because of the cold weather.

Chevron Phillips Chemical reported that it was preparing to shut down facilities due to severe cold weather at its Pasadena, Texas, plant.

Enbridge said the Route 59 crude oil pipeline was shut down after a power outage.

Saudi Aramco's Motiva Enterprises LLC will also cease operations at its Port Arthur, Texas refinery.

Marathon Oil Co. 's Galveston Bay refinery south of Houston was also temporarily shut down because of weather problems.

Some 3m b/d of capacity has been disrupted by refinery shutdowns in the US state of Texas.Oil prices surged Thursday to their highest level in about 13 months.

Brent crude futures rose 79 cents, or 1.23 percent, to settle at $65.13 a barrel, the highest level since Jan. 22.U.S. crude futures rose 68 cents, or 1.11 percent, to settle at $61.84 a barrel, the highest level since Jan. 8 last year.

Global inflation, money has become less valuable than before

The issuance of a large number of dollars will cause inflation, currency devaluation, push up commodity prices and send world prices soaring. Almost no country is immune from this, and China will also experience "imported inflation".

The first is higher commodity prices.

Crude oil is on the rise. After plunging through the earth in 2020, the oil market has now returned to normal, and combined with Saudi production curbs, crude oil prices have risen to their highest level since March 2020.

Corn is going up, from 1,900 yuan a ton to 2,600 yuan a ton.Aluminum rose from 11,000 yuan to 16,000 yuan per ton;Copper rose from 42,000 yuan to 59,000 yuan per ton;The craziest thing is iron ore, which went from 500 yuan/ton to 1100 yuan/ton...

So there was an analyst article on Wall Street the other day saying that 2021 is the year of commodities.I don't feel wrong.Not just base oil, but many commodities, are showing a trend of rising prices.Raw oil prices rise to the industry chain products undoubtedly play a cost support role.February 18, domestic commodity futures rose in a large area, energy products strong performance, crude oil up more than 7%, styrene up 11% limit, crude oil, ethylene glycol, fuel, plastic futures have soared, ethylene glycol main contract also reported up 8.35%.

The epidemic in China is stabilizing and the economic recovery is gaining momentum

While the global epidemic situation is serious, China's domestic epidemic control is relatively stable.

Many achievements have been made.

When the epidemic stabilizes, there will be a relative outbreak of much of the pent-up consumption.

Even though the epidemic has changed people's habit of spending money profligate, the overall situation is generally favorable for development. We believe that with the stable control of the epidemic, the economy will gradually recover its stable and sound development trend.

So will base oil prices continue to rise?

    Wall Street analysts are also more optimistic about the outlook for oil prices, predicting that oil prices could climb as high as $70 a barrel in the short term.Other Wall Street banks took a similar view.Wall Street has previously mentioned that, including JPMorgan Chase, Citigroup, the whole of Wall Street is now good commodities a new super cycle.

    The Marko Kolanovic analysis team at JPMorgan points out that over the past century or so, commodities have experienced four relatively notable supercycles, the most recent of which began in 1996 and ran for 12 years, culminating in 2008.From copper to cotton to crude oil to food, global commodity prices are surging. The commodity composite index is at its highest level in six years, and oil is up 64% since last November, according to JPMorgan.In JPMorgan's view, the origins of the current commodity supercycle are the ultra-loose monetary and fiscal support policies that have been fully implemented in the world's major countries since the outbreak, as well as a weaker dollar, higher inflation and more aggressive environmental policies around the world.

To sum up, the current situation is:

    The underlying price of oil has risen and is no longer comparable with the price of a year ago.A year later, base oil rose by 1000 yuan per ton. The international oil price rose from 32 dollars in March last year to 63 dollars at present.Congratulations to the owners who stocked the warehouse before the year, the value of the goods has increased!A year later, base oil rose by 1,000 yuan per ton.   Although the price has been rising, Shandong Juntai Chemical, as a manufacturer of high temperature grease in China, we still try our best to keep the original price to create the greatest benefits for customers.The international oil price rose from 32 dollars in March last year to more than 60 dollars at present. Immediately after the Spring Festival, the competition for goods began again.Facing the sharp rise in the price of base oil after the beginning of spring, there is no need to be surprised, because base oil is only one category of all bulk commodities. If you take a look at other chemical, rubber and plastic industries, you will understand how comfortable and reasonable the rise of base oil is.

Some large grease dealers have sold out of stock and have to raise prices.Some hands still have a part of the inventory, to maintain the original price for customers.In any case, those manufacturers who are sincere in their business will not lower the quality of their products in order to sell more because of the rising market price.That deserves respect.Market fluctuations, product prices, frequent changes.Every one of us can do a good job, is to grasp today!Hope all customers can understand.