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Automotive polyurethane field to see oil prices "face"

January 27, 2023
Last night, the National Development and Reform Commission issued a notice to raise the price of refined oil products for the third time this year. This time, the “price inflation” that closely related to the people’s livelihood closely linked together. Faced with another rise in oil prices, the company’s response is much more intense.

An electrical equipment manufacturer complained to reporters: “The related prices of railways, civil aviation, and rental passengers have not risen. However, after the diesel price increases, the freight costs will inevitably increase. How does the company survive?”

This reporter learned that most manufacturing logistics transportation costs will look at the "face" of oil prices. Experts in the automotive industry said that the rise in oil prices raised the cost of automotive chemical materials such as automotive interiors and seals for polyurethane dashboards, car seat foam pads, and lubricants, which will be directly transmitted to the first-tier auto parts suppliers. Procurement system.

Plastics, rubber manufacturing and chemical fiber industries will also be affected by this rise in oil prices, the largest non-metallic mineral product industry and electrical machinery and equipment industries, as well as electronics, petrochemicals, textiles, food, building materials, automobiles, etc. Industry will be affected by the price adjustment. None of these industries are listed in the list of “subsidy subsidies” given by the NDRC.

The personage concerned predicts that next year's international oil prices will likely climb to 100 yuan/barrel high, and the introduction of a more sensitive trigger mechanism will be crucial. Zhu Baoliang, chief economist of the National Information Center, also stated that inflationary pressures in the first half of next year are still relatively large, and prices of resource products, including refined products, may be eased.
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