Plate market this week:
This week, the Shanghai Composite Index fell 0.94%, the gem index fell 3.64%, the CSI 300 fell 1.06%, the CITIC basic chemical index fell 0.66%, and the Shenwan chemical index rose 0.99%.
Rise and fall of various sub sectors of chemical industry: this week, the top five sub sectors of chemical industry were phosphorus fertilizer and phosphorus chemical industry (12.06%), potassium fertilizer (6.27%), compound fertilizer (6.1%), titanium dioxide (3.06%) and soda ash (2.86%); The top five sub industries in the chemical sector were electronic chemicals (- 4.19%), membrane materials (- 4.16%), other chemicals III (- 3.68%), rubber additives (- 3.58%), and food and feed additives (- 3.27%).
Main trends of the industry this week:
Wanhua Chemical Group Co.Ltd(600309) : on April 9, Wanhua Chemical Group Co.Ltd(600309) issued the announcement on foreign investment, which plans to build a high-performance new material integration and supporting project in Wanhua Chemical Group Co.Ltd(600309) Penglai Industrial Park through the holding subsidiary Wanhua Chemical Group Co.Ltd(600309) (Penglai) Co., Ltd., with a planned investment of 23.1 billion yuan to build 900000 T / a propane dehydrogenation, 500000 T / a polyether, 400000 T / a pochp, 300000 t / a polypropylene, 300000 t / a EO, 300000 t / a EOD Acrylic acid and ester (160000 T / a acrylic acid, 160000 T / a butyl acrylate, 20000 t / a octyl acrylate), 200000 t / a carbonate, 30000 T / a emollient, air separation and other devices and supporting utilities and auxiliary facilities are expected to be put into operation in June 2024.
Adiponitrile: China National Chemical Engineering Co.Ltd(601117) 3 on March 31, it was announced that the first batch of qualified products were successfully produced in the hexanediamine unit of Tianchen Qixiang nylon new material project (phase I), and the product quality reached the high-grade products. According to IHS, the global adiponitrile production capacity is concentrated in the United States, France and Japan. Adiponitrile is one of the most important raw materials of PA66, which is highly monopolized by overseas enterprises due to high technology and investment threshold. According to the PA nylon industry chain, in 2020, China imported 258000 tons of adiponitrile, consumed 288000 tons, and the actual output of civil PA66 was about 70000 tons. With the breakthrough of adiponitrile localization, it is expected that China will increase the output of adiponitrile by more than 650000 tons in 202223, far exceeding this forward export volume, which is expected to drive the decline of PA66 price, gradually expand the use scenario of PA66 and effectively improve the market scale of PA66.
Investment suggestions:
There is a tight balance between supply and demand of phosphorus chemical industry, and the landscape of the industrial chain is guaranteed. The prices of phosphate rock, phosphate fertilizer and other products may exceed expectations. Focus on: Yunnan Yuntianhua Co.Ltd(600096) , Guizhou Chanhen Chemical Corporation(002895) , Hubei Xingfa Chemicals Group Co.Ltd(600141) Sobute New Materials Co.Ltd(603916) British base has been successfully put into operation, the construction of Jiangmen base has been started, the capacity expansion has been promoted in an orderly manner, the national layout has been gradually improved, and the functional materials of new products have increased rapidly, which is expected to become the second growth point. The leading position has been continuously consolidated. Key attention: Sobute New Materials Co.Ltd(603916) . Under the background of steady growth, China’s soda ash demand is strong, and the prosperity of the industry has entered the upward channel. Inner Mongoliayuan Xing Energy Company Limited(000683) as the leader of China’s natural alkali process, it plans to hold Yingen mining to provide natural alkali mine guarantee for the continuous expansion of production capacity. There is broad space for long-term growth, and the key attention is: Inner Mongoliayuan Xing Energy Company Limited(000683) Hershey plant capsule, a Shandong Head Co.Ltd(002810) subsidiary, continues to release production capacity and consolidate its scale advantage. It is the first brand in Asia. At the same time, relying on mitega’s technical advantages, it will accelerate the commercialization of food grade cellulose ether in the field of plant protein artificial meat, which is expected to become a new performance growth point. Focus on: Shandong Head Co.Ltd(002810) . After years of competition and expansion, relying on the cost moat, China’s chemical industry has gradually become the world leader in various subdivided fields, but the current valuation is at a low level, focusing 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) . The tire industry has a history of one hundred years, a trillion market, covid-19 epidemic catalysis, accelerated industry reshuffle, and the share of China’s leading tire market continues to increase, which is expected to develop at a high growth rate for a long time. The focus is: Shandong Linglong Tyre Co.Ltd(601966) , Sailun Group Co.Ltd(601058) , Qingdao Sentury Tire Co.Ltd(002984) . In the context of “double carbon”, China has actively promoted the development of new coal chemical industry. Ningxia Baofeng Energy Group Co.Ltd(600989) is a leading enterprise in China’s coal to olefin industry. Its cost advantage ensures high profitability. It focuses on: Ningxia Baofeng Energy Group Co.Ltd(600989) . As a leader in the glyphosate industry, Lier Chemical Co.Ltd(002258) is a global leader in scale and cost. It plans refined glyphosate in a forward-looking manner to consolidate its leading position. At the same time, it actively expands new products horizontally, and its performance is expected to continue to grow. Focus on: Lier Chemical Co.Ltd(002258) .
Macroeconomic downside risk; Large fluctuations in oil prices; Downstream demand was lower than expected.
