Market Review
The new materials sector rose 1.05% last week, while the Shanghai and Shenzhen 300 index fell 1.98% in the same period. The new materials sector led the market by 3.03 percentage points. In terms of individual stocks, 49 of the 97 stocks in the sector rose, and 62 outperformed the market. The top five increases were Phichem Corporation(300398) (29.25%), Jiangxi Chen Guang New Materials Co.Ltd(605399) (17.72%), Shenzhen Prince New Materials Co.Ltd(002735) (13.44%), Jiangsu Shuangxing Color Plastic New Materials Co.Ltd(002585) (12.99%) and Yifan Pharmaceutical Co.Ltd(002019) (12.65%); The top five declines were Luoyang Glass Company Limited(600876) (- 14.81%), Lens Technology Co.Ltd(300433) (- 6.82%), Crystal Clear Electronic Material Co.Ltd(300655) (- 6.66%), Shandong Shida Shenghua Chemical Group Company Limite(603026) (- 5.90%) and Jiangsu Zhongtian Technology Co.Ltd(600522) (- 5.72%).
Industry hot spots:
PVDF: last week, the high price of China’s PVDF market stabilized. According to the statistics of Baichuan Yingfu, the average prices of industrial grade PVDF pellets and powders were 320000 yuan / ton and 340000 yuan / ton respectively on January 14. The price of battery grade PVDF is maintained at 445000 yuan / ton; The average market price of main raw material R142b is 185000 yuan / ton. In the short term, the demand of downstream manufacturers for PVDF decreased slightly near the end of the year, but the overall rigid demand level was maintained. The high price of R142b at the raw material end is strong, the market supply is limited, and there is little possibility of reduction in the short term, which plays a strong role in supporting the price of PVDF. At the same time, the production and sales data of Shanxi Guoxin Energy Corporation Limited(600617) vehicles in 2021 and the subsidy policies for new energy vehicles in 2022 have been released successively. Driven by the favorable policies, the demand for PVDF lithium battery level has also been boosted. When the economic applicability of PVDF substitutes is not reflected, it is expected that the price of PVDF will continue to remain high in the short term. It is suggested to pay attention to the dynamics of relevant leading enterprises.
Bio Based Polyamide: on January 11, Cathay Biotech Inc(688065) announced that it planned to adjust the investment amount of the raised funds of the project “40000 t / a biological sebacic acid construction project” from 1.711 billion yuan to 501 million yuan, and put 1.21 billion yuan of the raised funds into the new project “500000 T / a bio based glutamine and 900000 T / a bio Based Polyamide project”. The total investment of the new project is 13.838 billion yuan, which is implemented by its holding subsidiary Kaisai (Taiyuan) biomaterials Co., Ltd. and the normal operation time is expected to be 2023. In the new project with an annual output of 500000 tons of bio amyl diamine, 50000 tons are sold abroad, mainly for isocyanate and other fields, and 450000 tons are used to produce a series of bio based polyamides. The technical barrier of bio based nylon market is very high. At present, the commercialized biological ginilon products mainly include PA1010, PA11, PA610, pa410, etc. in addition, a variety of products are under development. In terms of bio based nylon, Cathay Biotech Inc(688065) the long-chain dicarboxylic acid prepared by biological fermentation is not limited to adipic acid with 6 C, but also XX dicarboxylic acid with 10-16 C. Therefore, Cathay Biotech Inc(688065) based on the polycondensation of self-produced bio glutaric diamine and various dicarboxylic acids, a series of bio ginolone products can be obtained, including pa56, pa510, nylon 512, nylon 514 and so on. Although bio Based Polyamide accounts for less than 1% of the current commercial nylon products, many chemical enterprises around the world have laid out relevant technologies. Biologically based nylon is a promising new branch of engineering plastics, which is widely applied in many fields, including automobile, wind power, transportation, sportswear, facial mask and so on. In addition, there are still many applications to be explored.
Risk factors: downstream demand is less than expected; The domestic substitution process of core materials is not as expected; The construction progress of capacity under construction is less than expected; The price of raw materials fluctuates greatly.
