Market review. As of February 11, 2022, CITIC’s basic chemical industry rose 0.8% this week, underperforming the CSI 300 index by 0.03 percentage points, ranking 22nd among CITIC’s 30 industries.
Specific to the three-level sub industries of CITIC basic chemical industry, from the performance of the recent week, the top five sectors are civil explosive products (+ 12.53%), nitrogen fertilizer (+ 10.85%), soda ash (+ 9.77%), viscose (+ 9.34%) and phosphate fertilizer and phosphorus chemical industry (+ 9.2%); The top five sectors of decline were carbon fiber (- 11.62%), lithium chemicals (- 8.91%), tires (- 3.37%), membrane materials (- 3.11%) and modified plastics (- 3.03%).
Among the stocks with the highest gains this week, Poly Union Chemical Holding Group Co.Ltd(002037) , Fanli Digital Technology Co.Ltd(600228) and Hunan Nanling Industry Explosive Material Co.Ltd(002096) performed best, with gains of 61.04%, 42.19% and 28.68% respectively. Among the stocks with the highest decline this week, Aba Chemicals Corporation(300261) , Anhui Estone Materials Technology Co.Ltd(688733) and Great Chinasoft Technology Co.Ltd(002453) performed the worst, with declines of – 44%, – 16.42% and – 15.97% respectively.
Rise and fall of chemical products: among the key monitored chemical products, the products with the top five price increases this week are dichloromethane (+ 17.24%), ethylene (+ 17.22%), xylene (+ 11.21%), PX (+ 8.84%), soft foam polyether (+ 8.19%). The products with the top five price decreases are dimethyl carbonate (- 15.89%), coke (- 13.63%), acetic acid (- 4.5%), methanol (- 3.73%) Acrylonitrile (- 2.65%)..
View of Basic Chemical Industry Week: the central economic work conference at the end of 2021 made it clear that the new renewable energy and raw material energy consumption will not be included in the total energy consumption control, and create conditions to realize the transformation from “double control” of energy consumption to “double control” of total carbon emission and intensity as soon as possible, so as to benefit the industry leading enterprises with high proportion of raw material energy consumption, strong cost control ability and perfect environmental protection system. Recently, affected by the decline of U.S. crude oil inventory, geopolitical factors of Russia and Ukraine and the expectation of insufficient production potential, WTI crude oil futures prices continued to rise this week. Due to the recent rapid rise in oil prices, the prices of some chemical products have risen. They are optimistic about the leading coal chemical enterprises Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) (600426) with cost comparative advantages and large private refining and chemical companies Rongsheng Petro Chemical Co.Ltd(002493) (002493). In addition, the downstream pesticide and sweetener industries can continue to pay attention. Key target concerns:
Longtou white horse: Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) (600426), Rongsheng Petro Chemical Co.Ltd(002493) (002493)
Pesticide: Jiangsu Yangnong Chemical Co.Ltd(600486) (600486)
Sweetener: Anhui Jinhe Industrial Co.Ltd(002597) (002597)
Risk warning: downstream demand is less than expected; Product price and price difference fall; Intensified industry competition, etc.
