In January 2022, CITIC basic chemical industry index fell by 10.55%, ranking 21st among 30 CITIC primary industries. Among the sub industries, soda ash, polyester and printing and dyeing chemicals rank first. Among the main products, the overall recovery of chemicals in January was significantly stronger than that in the previous period. Among the rising varieties, butadiene, isobutyraldehyde, lithium chloride, lithium carbonate and butyl acrylate led the increase. In terms of investment strategy in January, it is suggested to pay attention to coal chemical industry, modified plastics and polyester filament.
Market review: in January 2021, CITIC basic chemical industry index fell by 10.55%, outperforming the Shanghai Composite Index by 2.91 percentage points and the Shanghai and Shenzhen 300 index by 2.93 percentage points. The overall performance of the industry ranked 21st among 30 CITIC first-class industries. Over the past year, CITIC basic chemical index rose 25.91%, outperforming the Shanghai Composite Index by 29.40 percentage points and the Shanghai and Shenzhen 300 index by 40.63 percentage points, ranking fourth among the 30 CITIC primary industries.
Review of sub industries and individual stocks: in January 2022, among the 33 CITIC level III sub industries, one sub industry rose and 32 sub industries fell. Among them, soda ash, polyester and printing and dyeing chemicals ranked first, rising by 5.99%, falling by 3.40% and 3.87% respectively, while carbon fiber, coating and painting, phosphate fertilizer and phosphorus chemical ranked second, falling by 22.09%, 18.74% and 18.14% respectively. In terms of individual stocks, among the 418 stocks in the basic chemical sector, 41 stocks rose and 376 fell. Among them, Aba Chemicals Corporation(300261) , Shanxi Huhua Group Co.Ltd(003002) , Poly Union Chemical Holding Group Co.Ltd(002037) , Zhejiang Jiaao Enprotech Stock Co.Ltd(603822) and Shandongsino-Agriunitedbiotechnologyco.Ltd(003042) ranked among the top five, with increases of 42.59%, 41.92%, 38.21%, 27.51% and 24.40% respectively; Changjiang materials, St Mingke, St Chengxing, Zhejiang Yongtai Technology Co .Ltd(002326) and Shaanxi Meibang Pharmaceutical Group Co.Ltd(605033) led the decline, down 43.81%, 41.06%, 39.10%, 37.02% and 35.90% respectively.
Product price tracking: in January 2022, the international oil price rose sharply, among which WTI crude oil rose 17.21% to close at US $88.15/barrel, and Brent crude oil rose 17.27% to close at US $91.21/barrel. Among the 330 products tracked by Zhuo Chuang information, 196 varieties increased significantly compared with the previous month. The top gainers were butadiene, isobutyraldehyde, lithium chloride, lithium carbonate and butyl acrylate, with increases of 64.94%, 60.3%, 47.27%, 30.81% and 30.04% respectively. 98 varieties fell, and the proportion of falling varieties decreased significantly. The largest declines were argon, liquid chlorine, phosphorus oxychloride, phosphorus trichloride and dichloromethane, down 77.14%, 50%, 21.57%, 20.95% and 20.88% respectively.
Industry investment suggestion: maintain the investment rating of “synchronous market” of the industry. In terms of investment strategy in January 2022, it is suggested to pay attention to coal chemical industry, modified plastics and polyester filament.
Risk tip: the price of raw materials has fallen sharply, industry competition has intensified, and downstream demand has declined
