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Organic silica gel adhesive is an important component of adhesive:
In 2020, the sales volume / sales volume of adhesives in China were 7.09 million tons / 100.64 billion yuan respectively, with a year-on-year increase of 4.41% / 3.58%, showing a stable growth trend.
The sales volume / sales volume of silicone adhesives were 1.1 million tons / 19 billion yuan, accounting for 15.5% / 18.9% respectively.
Building adhesives are the largest category of silicone room temperature adhesives:
At present, the application of silicone room temperature adhesive in the construction field mainly includes three aspects: building curtain wall assembly, building sealing and insulating glass processing, which plays the role of bonding, sealing and waterproof.
In the construction of roads, bridges and other infrastructure, organic silica gel adhesive is widely used in silica gel and coating materials for seismic damping.
The construction sector consumes about 500000 tons of room temperature glue, accounting for about 60% of China’s total consumption of room temperature glue.
The steady growth policy is gradually implemented to support the demand and price of organic silica gel adhesive:
Since the beginning of the 21st century, with the rapid development of China’s urbanization process and the pull of large-scale infrastructure investment, the demand for room temperature glue once increased rapidly. In recent years, with the introduction of a series of real estate regulation policies in China, the real estate market began to cool down, and the growth rate of room temperature glue demand slowed down.
Although the current terminal demand for real estate is weak and the improvement of real estate enterprises’ capital is very limited, the steady growth policy is gradually implemented, which can cope with the triple pressure of “demand contraction, supply impact and weakening expectation”.
We believe that under the influence of the epidemic, the pace of demand recovery has been interrupted, the downward pressure on the economy has intensified, and there may be more room for policy optimization in the future. Although the real estate industry is under certain pressure, it is expected to continue to maintain a good development trend in the future, which is expected to continue to provide support for the high demand and price of organic silica gel adhesive.
Market review:
Sector performance: this week, CITIC’s primary petroleum and petrochemical index rose or fell – 2.15%, ranking 12th among 30 industry indexes. This week, the Shanghai index rose or fell by – 1.25%, and the CITIC primary petroleum and petrochemical index was – 0.9% relative to the Shanghai index. Rise and fall of petroleum and petrochemical sub sectors: oilfield services (+ 2.19%), oil exploitation (+ 0.68%), oil refining (- 1.49%), oil sales and storage (- 2.46%), engineering services (- 3.80%), other petrochemical (- 4.25%).
Rise and fall of individual stocks: this week, the petroleum and petrochemical sector led the rise of individual stocks, including Shanxi Blue Flame Holding Company Limited(000968) (+ 22.54%), Zhongman Petroleum And Natural Gas Group Corp.Ltd(603619) (+ 10.75%), Shenzhen Guangju Energy Co.Ltd(000096) (+ 4.57%), China Oilfield Services Limited(601808) (+ 3.91%), Geo-Jade Petroleum Corporation(600759) (+ 3.01%); Stocks leading the decline include Haohua Chemical Science & Technology Corp.Ltd(600378) (- 12.79%), Guangdong Modern High-Tech Fiber Co.Ltd(300876) (- 8.82%), Shenyang Chemical Co.Ltd(000698) (- 8.75%), Yueyang Xingchang Petro-Chemical Co.Ltd(000819) (- 8.16%), Yantai Tayho Advanced Materials Co.Ltd(002254) (- 7.92%), etc.
Risk tip: policy risk; Geopolitics exacerbates risks; The risk of sharp fluctuations in crude oil prices and the risk of continued deterioration of the global covid-19 epidemic;
