Key news tracking this week
Recently, the development and Reform Commission of the National Energy Administration officially issued the implementation plan for the development of new energy storage in the 14th five year plan. The document proposes that by 2025, the new energy storage will enter the stage of large-scale development from the initial stage of commercialization and have the conditions for large-scale commercialization. Among them, the performance of electrochemical energy storage technology is further improved, and the system cost is reduced by more than 30%.
Price tracking comments on key products this week
WTI oil prices fell 0.2% this week to US $91.59/barrel.
Key injection sub industries: caustic soda / silicone / viscose staple fiber / pure MDI / heavy soda ash / light soda ash / DMF / ethylene glycol rose by 12.0% / 7.7% / 3.1% / 2.6% / 2.4% / 1.9% / 1.8% / 0.5% month on month respectively this week; Acetic acid / calcium carbide PVC / polymerized MDI / Spandex / TDI / ethylene PVC / rubber decreased by 17.9% / 7.5% / 4.7% / 3.6% / 3.6% / 0.5% / 0.4% month on month respectively; The price of urea / VA / VE / titanium dioxide / viscose filament / liquid methionine / solid methionine remained unchanged.
The top five sub industries of this week’s increase: liquid chlorine (Central China) (+ 21.2%), butane (East China frozen CFR) (+ 16.5%), CBOT wheat (+ 16%), yellow phosphorus (Sichuan) (+ 15.6%), propane (East China frozen CFR) (+ 14.9%). Caustic soda: this week, the transaction focus of liquid alkali Market in Northwest China rose, the trend of flake alkali Market in the region increased, the shipment volume of liquid alkali in the market decreased, and the price rose again. The business owners are used for downstream alumina. The actual high price transaction this week is limited, mostly long-term single customers.
Soda ash: this week, the silicone market is full of momentum, and the focus of market trading is rising. Driven by the favorable supply and demand pattern, the on-site push up operation is active. During the week, some units were shut down for maintenance, and some orders of enterprises before the Spring Festival were urgently to be delivered. Orders in March were also being followed up. In addition, the recent active export of silicone had an obvious driving effect, the supply of goods in the market was small, the inventory of silicone enterprises was low, and the reluctant selling mood of cargo holders was obvious. The market DMC reference price was 3500035500 yuan / ton, and most of them were closed. The downstream silicone rubber and silicone oil are running higher driven by the strength of raw materials and the rising demand.
Market performance of chemical sector this week
The basic chemical sector rose 2.15% compared with last week, and the Shanghai and Shenzhen 300 index fell 1.67% compared with last week. The basic chemical sector outperformed the market by 3.82 percentage points, ranking sixth in all sectors. According to the classification of Shenwan, the basic chemical sub industries with large weekly increases include phosphate fertilizer (+ 10.91%), phosphate chemical industry and phosphate (+ 10.16%), petroleum trade (+ 8.38%), civil explosive products (+ 7.55%), and potassium fertilizer (+ 5.45%).
Key sub industry views
(1) many factors affect the 22-year prosperity 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) . (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; 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; It is recommended that the leader of new energy functional materials Shenzhen Capchem Technology.Ltd(300037) , and the global leader of sweeteners Anhui Jinhe Industrial Co.Ltd(002597) . (4) The vertical and horizontal expansion of the leading enterprises has highlighted the advantages of integration, and the profit center is expected to rise; Focus on Wanhua Chemical Group Co.Ltd(600309) , Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) , Zhejiang Nhu Company Ltd(002001) (jointly covered with the medical group).
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
