Upcoming Chinese New Year may cause delays in raw material deliveries [World News]

Production downtime and freight problems in China

The Chinese Lunar New Year (China New Year, CNY) falls on 29 January 2025, but the official celebrations last longer – from 28 January to 4 February. During this time, many companies suspend their operations for up to 2-4 weeks. Production may be halted as early as mid-January, but should resume by mid-February. Such an outage could lead to delays in orders and production backlogs, which could affect the global market, especially when it comes to certain industries. Combined with ongoing strikes at US ports, increased shipments and reduced staffing at Chinese ports could lead to significant delays in importing and exporting goods.

What substances are at risk?

Based on past years, it can be inferred that production reductions and disrupted supply chains could particularly affect chemicals imported from China. For example, in 2022, glyphosate prices increased as a result of production constraints and transport problems caused by CNY. In 2023, substances such as choline chloride, MSM dietary supplement and soy protein isolates were affected. Every February sees the impact of the Chinese festivities on the chemical raw material market, with prices for these products rising by an average of 4% in 2021.

Currently, as a result of anticipated supply problems during CNY, among other things, an increase in the price of acetic acid is observed, which is also influenced by increased demand – both domestically and among importers such as India. Price increases are also anticipated for succinic acid, among others, as well as other chemical raw materials such as surfactants, plant protection products, dyes, solvents, resins, polymers and other chemical raw materials for pharmaceuticals, cosmetics, food and fertilisers.