Plate market this week:
This week, the Shanghai Composite Index fell 0.11%, the gem index fell 3.75%, the CSI 300 fell 1.68%, the CITIC basic chemical index fell 3.21%, and the Shenwan chemical index fell 1.81%.
Rise and fall of various sub sectors of chemical industry: this week, the top five sub sectors of chemical industry were viscose (5.17%), soda ash (3.48%), chlor alkali (1.41%), polyester (0.92%) and food and feed additives (0.43%); The top five sub industries in the chemical sector were tires (- 6.37%), other chemicals III (- 5.22%), membrane materials (- 4.67%), coatings, inks and pigments (- 4.52%), phosphate fertilizer and phosphorus chemical (- 4.44%).
Main trends of the industry this week:
Successful EVA start-up: this week, the 100000 t / a EVA unit of Zhongke refining and Chemical Co., Ltd. was put into operation and opened up the whole process to produce EVA products. The EVA unit of Zhongke refining and Chemical Co., Ltd. introduces the advanced technology of kettle polymerization process of German leandebasel company, which can produce ethylene vinyl acetate polymerization products and high-pressure low-density polyethylene homopolymer products.
Cabot’s new production capacity of conductive compounds: according to China Chemical Information Weekly, Cabot recently announced the opening of a new factory of special compounds in Cilegon, Indonesia. The new plant, Co located with Cabot’s existing carbon black production base, will increase the global production capacity of 20000 tons of conductive compounds and special compounds such as black masterbatch every year. The plant is expected to be put into use by the end of 2022. The plant is Co located with Cabot’s existing carbon black plant. The waste heat energy recovered from the carbon black plant can be used to reduce the impact of the project on the environment, which is consistent with Cabot’s recently announced goal of achieving global net zero carbon emission by 2050.
Investment suggestions:
After years of competition and expansion, leading enterprises in the chemical industry have continued to consolidate the cost moat, with significant core competitiveness and relatively low current valuation. It is suggested to focus on: Wanhua Chemical Group Co.Ltd(600309) , Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) , Jiangsu Yangnong Chemical Co.Ltd(600486) , Huafon Chemical Co.Ltd(002064) Shandong Head Co.Ltd(002810) relying on the technical advantages of mitga, accelerate the application of food grade cellulose ether in the field of plant protein artificial meat; The new production capacity of subsidiary Hershey plant capsule is rapidly released, and its scale advantage is continuously enhanced. It is the first brand in Asia. It is suggested to focus on: Shandong Head Co.Ltd(002810) . The global tire market is a trillion level track. The epidemic has accelerated the reshuffle of the industry, and China’s leading enterprises have accelerated their expansion to seize the global market share, which is expected to maintain rapid development. It is suggested to focus on: Shandong Linglong Tyre Co.Ltd(601966) , Sailun Group Co.Ltd(601058) Ningxia Baofeng Energy Group Co.Ltd(600989) is a leading enterprise of coal to olefins in China. It has the advantage of low cost, builds a high-profit moat, and ushers in new development opportunities under the background of carbon neutralization. It is suggested to focus on: Ningxia Baofeng Energy Group Co.Ltd(600989) Sobute New Materials Co.Ltd(603916) continue to launch new products and continuously enhance market competitiveness by relying on product and technical advantages. Sichuan Daying base has been successfully put into operation, and the construction of Guangdong Jiangmen base has been started to continuously expand production capacity, explore the market, improve the national base layout and consolidate the leading position in the industry. It is suggested to focus on: Sobute New Materials Co.Ltd(603916) . China’s soda ash market continues to improve. Inner Mongoliayuan Xing Energy Company Limited(000683) as the leader of China’s natural soda process, it will benefit from the upward prosperity of the industry. Moreover, the newly discovered natural soda ore is expected to reshape China’s soda ash supply pattern, with broad long-term growth space. It is suggested to focus on: Inner Mongoliayuan Xing Energy Company Limited(000683) . The glufosinate industry is booming, and Lier Chemical Co.Ltd(002258) ‘s scale and cost advantages are leading in the world. At the same time, it actively expands new products horizontally, and its performance is expected to continue to grow. It is suggested to focus on: Lier Chemical Co.Ltd(002258) . With the explosion of demand in the downstream new energy vehicle industry, the scarcity attribute of phosphate rock gradually appears. As a Chinese phosphorus chemical giant, Hubei Xingfa Chemicals Group Co.Ltd(600141) has significant advantages in industrial chain integration, and the rapid volume of electronic chemicals in the future will also give the company strong growth attribute. It is suggested to focus on: Hubei Xingfa Chemicals Group Co.Ltd(600141) .
Risk warning: macroeconomic downturn; Large fluctuations in oil prices; Downstream demand was lower than expected.
