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Diaper raw material giant issued a shutdown warning: tight natural gas supply and volatile oil prices

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Recently, BASF, an important supplier of SAP raw materials for diapers, issued & ldquo; Shutdown warning & rdquo;, It indicates that the German chemical industry will & ldquo; Total collapse & rdquo;. It is worth noting that this is also the second time BASF has lit the production red light for energy supply after issuing the price increase letter in mid March.

 

Russia's natural gas restrictions further affect the production of diaper raw materials

On March 31, Russian President Vladimir Putin signed a decree and officially announced that from April 1, & ldquo; Unfriendly countries & rdquo; Natural gas trade settlement in rubles. This means & ldquo; Unfriendly countries & rdquo; To purchase natural gas from Russia, you need to open a ruble account in a Russian bank before settlement and purchase.

After the decree was announced, the EU immediately rejected the proposal. But Putin said that if he refused to pay in rubles, Russia would not provide natural gas.

For the natural gas settlement requirements put forward by Russia, German Chancellor Schultz reiterated that he refused to adopt the ruble settlement requirements.

About natural gas & ldquo; Payment disputes;, Martin brudermuller, an important SAP supplier of diaper raw materials and CEO of German chemical giant BASF, pointed out in an interview that Russia supplies 55% of Germany's natural gas, and if it is cut off suddenly, it will lead to & ldquo; Total collapse & rdquo;. There is no substitute for natural gas as raw material or energy (in Germany). The shortage of natural gas will lead to insufficient energy for chemical production and lack of key raw materials for manufacturing products.

BASF

BASF also said that if the natural gas supplied to the Ludwigshafen base in Germany is reduced to less than half of the current demand, the operation of the world's largest integrated chemical production base will be completely stopped.

BASF's official website shows that Ludwigshafen base covers an area of about 10 square kilometers. It is the largest integrated chemical production base in the world and the headquarters of BASF.

In fact, this is not the first time BASF has turned on the production red light on the issue of energy supply. In the April price increase letter issued by BASF on March 15, it was made clear that uncertain factors such as war have led to the sharp rise of natural gas in Europe, which has had an adverse impact on the company's current manufacturing costs.

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Influence of international energy price change on diaper raw material chemical industry

On the other hand, the international oil price has not stabilized yet. On April 4 local time, the official website of the Ukrainian Ministry of Defense announced that during the conflict on April 3, the Ukrainian army shot down two Russian military aircraft. In the evening of that day, the international crude oil price rose sharply again. As of 22:00 Beijing time, NYMEX crude oil rose by more than 4% and returned to the top of US $100. Although the international oil price dropped significantly on April 6, some people in the industry believe that the trend of keeping the international oil price high has not changed.

The recent surge in energy prices has led to a sharp rise in the production costs of many European enterprises, which has not only reduced profits, but also suppressed the prosperity of production. Some companies can only be forced to reduce production or even stop production.

henkel

It is not only BASF that is shrouded in the shadow of the price rise problem. It is reported that in addition to BASF, there are many well-known chemical plants in European Union countries to provide upstream raw materials for the diaper industry. The consequences of stopping gas are unimaginable

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