It is reported that the main reason is the following two points:

First, after the national day, Shandong, Henan and other regional power rationing pressure increase, internalization of the factory operating rate decreased, resulting in the area of larger production of soda ash, caustic soda, liquid chlorine, nitric acid, adipic acid, methanol supply. And the reduction of liquid chlorine production directly leads to the rising cost of raw material upstream of polyether, and then polyether price increases in the cost led to higher prices. In addition to energy-saving emission reduction while the overall effect of polyether manufacturers is much smaller than the product, but not without influence, such as the Shandong area manufacturers started to decline polyether; Changzhou manufacturers started with limited energy not high load, and sometimes need the power one day; such as the Nanjing area due to power and other reasons, operating rate less than half; Zhejiang manufacturers can use the best situation is usually 70% of electricity production, etc. This is one reason why the recent domestic polyether supply shortage.

Second, from March this year, polyether market continued for 4 consecutive months of downturn. This is of course a year after the soft furniture is blocked, the appreciation of the renminbi, the domestic demand is limited and other reasons, but then, it seems both reached a "consensus, upstream raw material manufacturers to maintain a low base operation, in addition to large manufacturers of other downstream procurement stage inventory, other small and medium-sized manufacturers are mainly on-demand procurement. As a result, once the outside influence, such as raw material prices rise or fall, the market immediately polyether adjusted, and usually the market to buy or not buy up mentality, lower inventory of raw materials is low, there will be centralized procurement, the market will certainly out of stock.

Impact of the above two main will as to energy-saving emission reduction efforts vary in November will gradually improve, but the downstream do not buy or buy up mentality, will be even higher prices after the inhibition of - downstream production costs. Therefore, in the early November is expected to continue to rise, the lack of substantial momentum, down need external bad news continues to increase, so the domestic polyether market may remain high and stable. Subsequently, if there is no unexpected factors, such as soaring international crude oil, power rationing and other effects, the polyether market may be appropriate callback.

Postscript: Although there have been two large-scale stock shortage in the second half of the year, it is a special case under special conditions. Our country is still excess capacity of polyurethane raw materials, especially the lower threshold of the polyether polyether, although the monthly export has increased, as of 2010 09 months of exports of primary shape other polyether 15063 tons, the export amount of $33 million 562 thousand and 300, the average price of 2228 U.S. dollars / ton. Export volume increased by 14.14% over the previous month, an increase of 38.17% over the same period last year. But this is far less than the increase in domestic production capacity, according to incomplete statistics, only the first half of 2010 nearly 400 thousand tons of polyether built or to be built, the year 2010 is expected to have a production capacity of 600 thousand tons of new and expansion. As China Shell in May 2010 after maintenance expansion to 230 thousand tons; Shanghai Gaoqiao Petrochemical plans to expand production to 250 thousand tons; Zibo Dexin is expected in October this year, the total capacity of the federal unit will reach 130 thousand tons; Fushun good plan in three places (Guangzhou, Shandong, Shanghai) expansion, the future production capacity reached 210 thousand tons...... So far, a total of various types of polyether production capacity reached 2 million 600 thousand tons. However, from 2009 statistics, the domestic consumption of various types of polyether is only about 1 million 400 thousand tons, this year is expected to consume all kinds of polyether, including imports, including about 1 million 600 thousand tons. In the next period, with the appreciation of the RMB, the export situation is mainly downstream -- refrigerator, footwear, toys, upholstered furniture products of domestic polyurethane is grim, domestic overcapacity situation of polyurethane raw materials will be further developed.