Bank collapse, crude oil plunge! Chemical market is directly brought to collapse, BDO, PTMEG and other raw materials fell more than 100$ in a single day!

Bank collapse, crude oil plunge! Chemical market is directly brought to collapse, BDO, PTMEG and other raw materials fell more than 100$ in a single day!

Last week, the financial risks triggered by Silicon Valley Bank had a significant impact on the commodity market, with international oil prices falling by more than 10% in a single week, back to the level of the end of 2021, and the domestic chemical market also followed the commodity risk aversion and retreated.

Part.1

Several U.S. banks fail

On March 10, Silicon Valley Bank suddenly announced its collapse. This is the largest bank failure since the financial crisis in 2008, and also the second largest bank failure in U.S. history.

Following closely behind, on March 12, U.S. Signature Bank was closed by the New York State Department of Financial Services, becoming the third largest bank failure in U.S. history, following Silicon Valley Bank.

The bankruptcy storm of the two major banks quickly swept through the entire U.S. financial industry and spread to global markets. 13, the U.S. shares of a number of banks plummeted. First Republic Bank's stock price fell 78% on the 13th, triggering several suspensions, while Alliant West Bank plunged more than 80% and Westpac Consolidated Bank fell 60%, both banks triggered multiple meltdowns.

In addition, large U.S. bank stocks have also fallen, Bank of America, Wells Fargo, and Citigroup 13 were once down more than 5%. European stock markets were affected by the shock. According to CCTV news, 13, the European stock market major stock indexes fell across the board, closing down by more than 2%, European banking stocks suffered heavy losses.

Part.2

Crude oil price flash crash

Investors flocked to safe-haven assets and avoided commodities, and crude oil suffered another heavy drop on the 17th after several days of losses.

By the end of the day, the price of light crude oil futures for April delivery on the New York Mercantile Exchange closed down 2.43 percent at $66.74 per barrel; Brent crude oil futures for May delivery in London closed down 2.3 percent at $72.97 per barrel, a new closing low since December 2021, and U.S. oil both posted their biggest closing losses since Jan. 4.

Tina Teng, an analyst at online trading platform CMC Markets, said the recent disruption in the banking sector could continue to weigh on the outlook for oil demand. Ole Hansen, head of global commodity strategy at Denmark's Saxo Bank, said the drop in oil prices underscores the continued fragility of the market.

Part.3

These raw materials have fallen considerably

The impact of the bankruptcy of Silicon Valley is still continuing to ferment, the market for economic risk worries intensified, triggering a risk aversion in the commodity market, crude oil, black series have gone down, the chemical spot market quotes also fell back. On the day of March 15, some domestic chemical raw materials prices fell by up to a thousand dollars, specifically.

Polytetramethylene ether glycol single-day down $ 180 / ton.

BDO single-day downward adjustment of $140 / ton.

Acetone cyanohydrin single-day downward adjustment of $120/ton.

MIBK single-day downward adjustment of $120/ton.

USD 80/tonne single-day cut for butadiene.

In addition, dozens of raw materials like epoxy resin, propane, epichlorohydrin, bisphenol A, DOP, DOTP, etc. have also seen different degrees of downward adjustment.

From a comprehensive point of view, the international banking crisis hit the financial market, oil and other commodities are also affected by this drag, coupled with the current international terminal demand recovery is still slow, the overall recovery trend of the chemical market may appear slow.