Talk every Monday:
The application prospect is broad, and the industry concentration still has great room for improvement:
China's consumption of phenolic resin was 1398000 tons in 2019, with a compound growth rate of 8.8% in recent five years. Phenolic molding compounds, wood processing and laminates, grinding and friction materials accounted for 22.7%, 20.5% and 20.0% of the total consumption respectively.
The unique chemical structure of phenolic resin gives it many excellent physical and chemical properties, making phenolic resin one of the important raw materials of wind turbine blades, and its demand will increase greatly with the vigorous development of wind power generation. Phenolic resin is the basic raw material of casting materials, refractories, molding plastics and electronic materials. Because of its low smoke and low toxicity, phenolic resin is gradually used in airports, railway stations, schools, hospitals and other public building facilities and aircraft interior decoration materials.
The technical barriers of reinforced phenolic resin or special phenolic resin with excellent performance in the medium and high-end market are high, and the situation of short supply continues to be maintained. Small enterprises with excessive emissions, backward technology and limited production capacity will be eliminated, large-scale phenolic resin production enterprises will realize the growth of business scale, and the industry concentration will be further improved in the future.
Carbon neutralization era opens the development space of bio based phenolic resin:
The production process of phenolic resin will produce toxic substances that free aldehydes pollute the environment, and the wider application of phenolic resin is limited due to the high toxicity of phenol. Lignin based phenolic resin is prepared by using renewable, non-toxic and high activity lignin instead of phenol. While ensuring the performance of phenolic resin, it can not only reduce the use of toxic substances such as phenol and formaldehyde, but also achieve the purpose of waste utilization.
The integrated industrial chain of biomass chemical industry and synthetic resin industry has realized the recycling of straw. With the continuous promotion of carbon neutralization and policy guidance, China's bio based materials and biomass industry will develop rapidly. It is expected that the demand for phenolic resin will rise steadily from 2020 to 2024, and China's phenolic resin consumption will reach 1.811 million tons in 2024.
Market review:
Sector performance: CITIC's primary petroleum and petrochemical index rose or fell - 2.19% this week, ranking 24th among 30 industry indexes. This week, the Shanghai index rose or fell - 0.39%, and the CITIC primary petroleum and petrochemical index was - 1.8% relative to the Shanghai index. The oil sales and storage sub segment dragged down the growth of the petroleum and petrochemical sector, with oilfield services (+ 2.79%), engineering services (+ 0.05%), oil refining (- 0.14%), oil exploitation (- 1.85%), other petrochemical (+ 3.52%), and oil sales and storage (- 4.59%).
Rise and fall of individual stocks: this week, the petroleum and petrochemical sector led the rise of individual stocks, including St Haiyue (+ 24.8%), Sinopec Shandong Taishan Pectroleum Co.Ltd(000554) (+ 18.64%), Yueyang Xingchang Petro-Chemical Co.Ltd(000819) (+ 14.40%), Zhongman Petroleum And Natural Gas Group Corp.Ltd(603619) (+ 7.09%), Daqing Huake Company Limited(000985) (+ 5.78%), etc.; the leading decline of individual stocks included Xinjiang International Industry Co.Ltd(000159) (- 16.38%), Shanxi Blue Flame Holding Company Limited(000968) (11.44%), Jiangsu Eastern Shenghong Co.Ltd(000301) (- 9.03%), Guangdong Modern High-Tech Fiber Co.Ltd(300876) (- 8.47%), Ningbo Bohui Chemical Technology Co.Ltd(300839) (- 8.42%), etc.
Risk tip: policy risk; Geopolitics exacerbates risks; Risk of sharp fluctuations in crude oil prices and continuous deterioration of global covid-19 epidemic;
