Key news tracking this week
Recently, the national development and Reform Commission issued the implementation guide for the transformation and upgrading of energy conservation and carbon reduction in key areas of high energy consuming industries (2022 Edition). It is mentioned that for enterprises with energy efficiency below the benchmark level, especially the benchmark level, actively promote the advanced technology and equipment proposed in this implementation guide, the catalogue of green technology promotion, the catalogue of recommended industrial energy-saving technologies, the catalogue of “energy efficiency star” equipment products, and strengthen the optimization of energy system, utilization of waste heat and pressure, pollutant emission reduction Comprehensive utilization of solid waste and transformation of public and auxiliary facilities, improve the green level of production processes and technical equipment, improve the efficiency of resource and energy utilization, and promote the formation of a strong Chinese market. Price tracking comments on key products this week
WTI oil prices rose 7.2% to US $93.1/barrel this week.
Key injection sub industries: this week, light soda ash / heavy soda ash / liquid methionine / calcium carbide PVC / pure MDI / TDI / rubber / solid methionine / ethylene PVC / urea / caustic soda / viscose filament / titanium dioxide / polymerized MDI increased by 8.9% / 7.9% / 6.1% / 5.9% / 5.6% / 5.4% / 4.9% / 4.9% / 2.9% / 1.9% / 1.6% / 1.5% / 0.9% respectively month on month; Ethylene glycol / acetic acid / VA / Spandex / DMF decreased by 5.8% / 4.5% / 2.1% / 0.9% / 0.6% month on month respectively; The price of viscose staple fiber / VE / silicone remained unchanged.
The top five sub industries of this week’s growth: melamine (Shandong) (+ 42.9%), n-butanol (East China) (+ 19.9%), octanol (East China) (+ 18.1%), maleic anhydride (Jiangsu) (+ 17.8%), ethylene (Southeast Asia CFR) (+ 17.2%). Soda ash: Although the inventory of some enterprises increased slightly this week due to the influence of the Spring Festival, after the festival, the operating load of some enterprises fell due to the influence of the Winter Olympic Games, and the market supply decreased. In addition, due to the sufficient orders of soda ash enterprises, some enterprises were reluctant to sell and temporarily did not offer prices, and the transaction focus of soda ash market continued to rise. Methionine: the market price of methionine in China rose this week, the overall market of methionine was stable and stronger, the inquiry was relatively positive, the transaction was temporarily general, and the terminal was mainly on the sidelines, paying attention to the manufacturer’s quotation and downstream goods preparation.
Market performance of chemical sector this week
The basic chemical sector fell 3.11% compared with last week, and the Shanghai and Shenzhen 300 index rose 0.82% compared with last week. The basic chemical sector underperformed the market by 3.93 percentage points, ranking eighth in all sectors. According to Shen Wan’s classification, the basic chemical sub industries with large weekly increases include potassium fertilizer (+ 8.75%), fluorine chemical industry and refrigerant (+ 1.5%), inorganic salt (+ 0.21%), and other fibers (+ 0.1%).
Key sub industry views
(1) many factors affect the 22-year boom of the sub industry. The overall profitability of the pesticide industry is expected to improve in the 22-year period when the cultivated land area is expected to increase, grain prices remain at a high level, China’s supply is orderly and prices rise in the fourth quarter. It is recommended that Jiangsu Yangnong Chemical Co.Ltd(600486) , Shandong Weifang Rainbow Chemical Co.Ltd(301035) , Anhui Guangxin Agrochemical Co.Ltd(603599) , Limin Group Co.Ltd(002734) ; The prosperity of the tire industry has bottomed out, and the new energy field has brought development opportunities. It is suggested to pay attention to Sailun Group Co.Ltd(601058) , Qingdao Sentury Tire Co.Ltd(002984) . The boom of viscose industry is expected to reverse, and Tangshan Sanyou Chemical Industries Co.Ltd(600409) is recommended. (2) The demand economy is relatively weak, and the fields of semiconductor materials, military materials and other new materials are independent and controllable in the medium and long term; Focus on the chemical synthesis platform company Valiant Co.Ltd(002643) and China’s private gas leading enterprise Suzhou Jinhong Gas Co.Ltd(688106) . (3) The downstream demand is stable, and great attention is paid to the subdivided fields such as photovoltaic, wind power, new energy and sugar substitutes; Focus on recommending Shenzhen Capchem Technology.Ltd(300037) as the leader of new energy functional materials and Anhui Jinhe Industrial Co.Ltd(002597) as the leader of global sweeteners. (4) The vertical and horizontal expansion of the leading enterprises has highlighted the advantages of integration, and the profit center is expected to rise; Key recommendations are Wanhua Chemical Group Co.Ltd(600309) , Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) , Zhejiang Nhu Company Ltd(002001) .
Risk warning: risk of large fluctuation of crude oil price; Covid-19 epidemic leads to less demand than expected risk; Safety and environmental protection risks
