Market review. As of February 18, 2022, CITIC’s basic chemical industry rose 4.17% this week, outperforming the CSI 300 index by 3.09 percentage points and ranking fourth 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 phosphate fertilizer and phosphate chemical (+ 11.02%), potassium fertilizer (+ 9.62%), lithium chemicals (+ 9.48%), carbon fiber (+ 7.37%) and rubber additives (+ 6.62%); The top five sectors of decline were paint, ink and pigment (- 3.65%), spandex (- 1.90%), synthetic resin (- 0.36%), polyurethane (- 0.30%) and civil explosives (+ 0.06%).
Among the stocks with the highest gains this week, Aba Chemicals Corporation(300261) , Henan Qingshuiyuan Technology Co.Ltd(300437) and Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) performed best, with gains of 66.73%, 25.48% and 21.15% respectively. Among the stocks with the highest decline this week, Shanxi Huhua Group Co.Ltd(003002) , Skshu Paint Co.Ltd(603737) and Poly Union Chemical Holding Group Co.Ltd(002037) performed the worst, with declines of – 21.65%, – 13.48% and – 12.43% respectively.
Rise and fall of chemical products: among the key monitored chemical products, the products with the top five price increases this week are ethylene oxide (+ 13.89%), caustic soda (+ 13.28%), butadiene (+ 12.16%), light soda (+ 11.56%), BDO (+ 6.45%), and the products with the top five price decreases are dimethyl carbonate (- 16.67%), acetic acid (- 10.38%), dichloromethane (- 9.59%) Dimethyl ether (- 7.32%), PVC (- 6.61%).
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 crude oil inventories in the United States, geopolitical factors in Russia and Ukraine and the expectation of insufficient production potential, the international oil price has remained high, and is optimistic about the leading coal chemical enterprise Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) (600426) with cost comparative advantage and the large private refining and chemical company 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.
