Key news tracking this week
In order to implement the law of the people’s Republic of China on the prevention and control of environmental pollution by solid waste, accelerate the popularization and application of advanced and applicable technologies and equipment for the comprehensive utilization of industrial resources, and continuously improve the efficiency of resource utilization, the Ministry of industry and information technology, the national development and Reform Commission, the Ministry of science and technology The Ministry of ecology and environment recently jointly prepared and issued the catalogue of advanced and applicable technology and equipment for comprehensive utilization of national industrial resources (2021 Edition).
The catalogue includes three categories: R & D, application and promotion. Each category includes three items: reduction of industrial solid waste, comprehensive utilization of industrial solid waste and recycling of renewable resources.
Price tracking comments on key products this week
WTI oil price rose 3.1% to USD 73.09/barrel this week.
Key injection sub industries: the prices of caustic soda / DMF / silicone / pure MDI / polymerized MDI / viscose filament rose by 9.1% / 6.5% / 4.3% / 2.5% / 1% / 0.4% month on month respectively this week; The prices of light soda ash / Spandex / heavy soda ash / viscose staple fiber / ethylene glycol / ethylene PVC / urea / rubber / VA / calcium carbide PVC decreased by 5.7% / 4.6% / 3.4% / 2.8% / 2.7% / 2% / 1.5% / 0.9% / 0.4% month on month respectively; The price of VE / solid methionine / liquid methionine / titanium dioxide / TDI / acetic acid remained unchanged.
The top five sub industries of this week’s growth: melamine (Shandong) (+ 17.6%), thiamethoxam (97% East China) (+ 11.1%), calcium pantothenate 98% (domestic) (+ 10.9%), caustic soda (32% ion-exchange membrane) (Jiangsu Liwen) (+ 9.1%), battery grade lithium carbonate (+ 8.5%).
Caustic soda: China’s liquid soda market has both ups and downs this week, and the market has a good enthusiasm for picking up goods. Next week, a company in Weifang, Shandong Province may reduce the negative maintenance, reduce the supply, have little fluctuation in the downstream demand side, and the prices in some areas may rise; The downstream enterprises in Hebei are expected to be put into operation. The procurement is gradually coming to an end next week, and the demand is reduced. At present, the inventory level of enterprises is low, and the price may remain strong in the short term. Public health events in East China and Zhejiang may gradually improve. Maintenance or parking manufacturers in Jiangxi and Jiangsu are expected to resume operation, and the supply of liquid alkali is large. Most enterprises hold a stable attitude.
DMF: China’s DMF market is strong this week. At present, the DMF factory maintains medium and high load production, the inventory pressure is controllable, the trading atmosphere on the floor is improved, the downstream buying mentality promotes the trading volume of new orders, the recovery of DMF continues to be tense, there are many uncontrollable factors on the floor, and the operator’s wait-and-see mentality is not reduced.
Market performance of chemical sector this week
The basic chemical sector fell 2.98% compared with last week, and the Shanghai and Shenzhen 300 index fell 0.67% compared with last week. The basic chemical sector underperformed the market by 2.3 percentage points, ranking 26th in all sectors. According to Shen Wan’s classification, the major weekly increases in the basic chemical sub industry include pesticides (+ 5.18%), petroleum trade (+ 4.96%), paint and ink manufacturing (+ 2.99%), and other rubber products (+ 1.31%).
Key sub industry views
(1) Many factors affect the prosperity of the sub industry next year. Under the expected increase of cultivated land area, the maintenance of grain prices at a high level, China’s orderly supply and the rise of prices in the fourth quarter, the overall profitability of the pesticide industry is expected to improve next year, with emphasis on 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 brings development opportunities, so it is recommended to pay attention to it 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) is recommended. (2) The demand economy is relatively weak, and the fields of semiconductor materials, military materials and other new materials are independently 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) are mainly recommended. (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; the new energy functional material leader Shenzhen Capchem Technology.Ltd(300037) , global sweetener leader Anhui Jinhe Industrial Co.Ltd(002597) . (4) The leader is expanding vertically and horizontally, the integration advantage is prominent, and the profit center is expected to rise; it is recommended that Wanhua Chemical Group Co.Ltd(600309) , Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) , Zhejiang Nhu Company Ltd(002001) .
Risk warning: risk of large fluctuation of crude oil price; Covid-19 epidemic leads to less demand than expected risk; Safety and environmental protection risk
