Key news tracking this week
The national development and Reform Commission and other departments issued the implementation plan for promoting green consumption, which proposed to further stimulate the green power consumption potential of the whole society. Establish a linkage mechanism between green power trading and renewable energy consumption responsibility weight, and market-oriented users complete the renewable energy consumption responsibility weight by purchasing green power or green certificate. Strengthen the connection with carbon emission trading, and study the feasibility of deducting the carbon emissions related to green power in emission accounting in combination with the revision and improvement of the technical specifications of accounting reports of relevant industries in the national carbon market. We will continue to promote the innovative development of smart photovoltaic, vigorously promote the application of building photovoltaic, and accelerate the proportion of residents’ green power consumption.
Price tracking comments on key products this week
WTI oil prices rose 1.6% to $85.14 a barrel this week.
Key injection sub industries: this week, silicone / light soda ash / ethylene PVC / TDI / calcium carbide PVC / DMF / solid methionine increased by 5.0% / 4.7% / 3.4% / 3.2% / 1.9% / 1.2% / 0.8% month on month respectively; VA / acetic acid / rubber / ethylene glycol / caustic soda / polymerized MDI / Spandex / urea / viscose staple fiber decreased by 4.0% / 2.6% / 2.5% / 1.8% / 1.4% / 0.9% / 0.8% / 0.2% month on month respectively; The price of heavy soda ash / viscose filament / VE / liquid methionine / titanium dioxide / pure MDI remained unchanged.
The top five sub industries of this week’s increase: calcium pantothenate 98% (domestic) (+ 19.6%), natural gas henryhub (spot) (+ 17.5%), octanol (East China) (+ 13.6%), DOP (East China) (+ 9.5%), maleic anhydride (Jiangsu) (+ 8.2%).
Organosilicon: this week, the organosilicon market was very expensive, and some of them rose slightly. Individual enterprises that closed the market in the early stage received a small number of orders within the week, but due to the large number of orders received in advance, the situation of tight supply in the market failed to be alleviated, and the reluctant selling mood of the cargo holders remained unabated.
Soda ash: the price of China’s soda ash market is stable and rising. Some light soda ash enterprises offer stable prices, and some enterprises flexibly adjust prices according to their own shipments; The market price of heavy soda ash is mainly stable, and some enterprises still do not quote.
Market performance of chemical sector this week
The basic chemical sector fell 3.56% compared with last week, and the Shanghai and Shenzhen 300 index rose 1.11% compared with last week. The basic chemical sector underperformed the market by 4.67 percentage points, ranking 28th in all sectors. According to the classification of Shenwan, the basic chemical sub industry has a large weekly increase: synthetic leather (+ 0.73%) and nitrogen fertilizer (+ 0.51%).
Key sub industry views
(1) many factors affect the 22-year boom of the sub industry. The overall profitability of the pesticide industry is expected to improve in the 22-year period when the cultivated land area is expected to increase, grain prices remain at a high level, China’s supply is orderly and prices rise in the fourth quarter. It is recommended that Jiangsu Yangnong Chemical Co.Ltd(600486) , Shandong Weifang Rainbow Chemical Co.Ltd(301035) , Anhui Guangxin Agrochemical Co.Ltd(603599) , Limin Group Co.Ltd(002734) ; The prosperity of the tire industry has bottomed out, and the new energy field has brought development opportunities. It is suggested to pay attention to Sailun Group Co.Ltd(601058) , Qingdao Sentury Tire Co.Ltd(002984) . The boom of viscose industry is expected to reverse, and Tangshan Sanyou Chemical Industries Co.Ltd(600409) is recommended. (2) The demand economy is relatively weak, and the fields of semiconductor materials, military materials and other new materials are independent and controllable in the medium and long term; Focus on the chemical synthesis platform company Valiant Co.Ltd(002643) and China’s private gas leading enterprise Suzhou Jinhong Gas Co.Ltd(688106) . (3) The downstream demand is stable, and great attention is paid to the subdivided fields such as photovoltaic, wind power, new energy and sugar substitutes; Focus on recommending Shenzhen Capchem Technology.Ltd(300037) as the leader of new energy functional materials and Anhui Jinhe Industrial Co.Ltd(002597) as the leader of global sweeteners. (4) The vertical and horizontal expansion of the leading enterprises has highlighted the advantages of integration, and the profit center is expected to rise; Key recommendations are Wanhua Chemical Group Co.Ltd(600309) , Shandong Hualu-Hengsheng Chemical Co.Ltd(600426) , Zhejiang Nhu Company Ltd(002001) (joint medical coverage).
Risk warning: risk of large fluctuation of crude oil price; Covid-19 epidemic leads to less demand than expected risk; Safety and environmental protection risks
