Market review. As of February 25, 2022, CITIC’s basic chemical industry rose 2.39% this week, outperforming the CSI 300 index by 4.06 percentage points and ranking fifth 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 (+ 10.00%), civil explosives (+ 9.95%), carbon fiber (+ 6.08%), lithium chemicals (+ 5.95%) and potassium fertilizer (+ 5.61%); The top five sectors of decline were soda ash (- 3.60%), paint, ink and pigment (- 3.15%), spandex (- 2.96%), printing and dyeing chemicals (- 2.69%) and polyurethane (- 2.47%).
Among the stocks with the highest gains this week, Baoding Lucky Innovative Materials Co.Ltd(300446) , Hubei Forbon Technology Co.Ltd(300387) and Sichuan Yahua Industrial Group Co.Ltd(002497) performed best, with gains of 47.41%, 36.85% and 29.63% respectively. Among the stocks with the highest decline this week, Poly Union Chemical Holding Group Co.Ltd(002037) , Skshu Paint Co.Ltd(603737) and Shandong Sinocera Functional Material Co.Ltd(300285) performed the worst, with declines of – 16.30%, – 13.43% and – 9.25% respectively.
Rise and fall of chemical products: among the key monitored chemical products, the products with the top five price increases this week are yellow phosphorus (+ 15.63%), potassium chloride (+ 11.75%), ammonium chloride (+ 10.53%), fuel oil (+ 10.31%), toluene (+ 9.95%). The products with the top five price decreases are acetic acid (- 17.89%), DMC (- 9.33%), cyclohexanone (- 8.87%), butanone (- 6.15%) ABS（-5.56%）。
View of Basic Chemical Industry Week: the national two sessions will be held in 2022. According to the current situation of the local two sessions, “double carbon”, innovative development and “stable growth” are expected to continue to be the focus of the national two sessions. Specific to the basic chemical industry, it is expected that under the “double carbon” goal, the supply side reform will be beneficial, an integrated leading enterprise with cost and environmental protection technology advantages and capacity expansion potential. You can pay attention to Wanhua Chemical Group Co.Ltd(600309) ( Wanhua Chemical Group Co.Ltd(600309) ), Rongsheng Petro Chemical Co.Ltd(002493) ( Rongsheng Petro Chemical Co.Ltd(002493) ), Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) ( Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) ).
In addition, the prosperity of new energy industries, such as photovoltaic, wind power, lithium battery and other industries, will continue to drive the demand for key upstream materials. You can pay attention to Jiangsu Eastern Shenghong Co.Ltd(000301) ( Jiangsu Eastern Shenghong Co.Ltd(000301) ), Lecron Industrial Development Group Co.Ltd(300343) ( Lecron Industrial Development Group Co.Ltd(300343) ) and Hoshine Silicon Industry Co.Ltd(603260) ( Hoshine Silicon Industry Co.Ltd(603260) ).
The two sessions are expected to continue to pay attention to the theme of innovation. Specifically, in the chemical industry, they will focus on advanced materials, fine chemicals and other fields. They can pay attention to relevant specialized and special new enterprises Cathay Biotech Inc(688065) ( Cathay Biotech Inc(688065) ), Sichuan Em Technology Co.Ltd(601208) ( Sichuan Em Technology Co.Ltd(601208) ), etc.
Risk warning: the fluctuation risk of energy price caused by the uncertainty of Russia Ukraine conflict; Risk of narrowing the price difference of chemical products due to sharp fluctuations in oil prices; If macroeconomic pressure leads to the risk that the downstream demand of chemical products is lower than expected; The risk of deterioration of supply and demand pattern due to the rapid release of new production capacity of some products; The risk of intensified industry competition; Natural and man-made disasters and other force majeure events.
