The Shanghai Composite Index rose 2%, and the chemical industry rose 1.72%, weaker than the market. The sub-industries have risen and fallen, and the sub-sectors such as phosphate fertilizer, vinylon and compound fertilizer have shown an increase. Other fibers, polyester and viscose, which had a large increase last week, have seen a correction.
| Benzalkonium chloride |
In the wake of futures surges and the depreciation of the renminbi, the cost of imported goods increased, the inventory in the port and the mainland was low, and the downstream maintenance olefin plant plan was restarted, the price rose sharply, with an increase of 200-270 yuan/ton.
The price of acetic acid continued to rise slightly, and the price increase in each region was around RMB 50/ton.
The domestic mainstream propylene market price continued to rise sharply, and the new high in the year, the price of each region rose to more than 9,000 yuan.
The domestic urea market began to rebound after bottoming out. The potash market continued to rise slightly in the firm. The phosphate fertilizer market is running smoothly.
The glyphosate market is sideways. The supplier quoted 2.7-2.95 million yuan / ton, the market turnover to 2.7-2.75 million yuan / ton
The domestic pure MDI market dropped at a high level. The aggregated MDI is falling back, the downstream is subject to environmental protection, the overall starting load is not high, the demand for raw materials is general, and the high price is resisting emotion.
Investment Advice:
In the near future, we recommend focusing on quality growth targets and leading brands with industry integration. In this issue, we can focus on: (1) The refining and chemical industry chain and coal chemical enterprises promoted by high oil prices. (2) Enterprises with corresponding chemical products with high prices in recent years, such as silicone, nylon 66, polyester, pesticides, fertilizers, etc. (3) Growth-oriented enterprises with core high-precision technology, focusing on new materials sub-sectors with broad industrial prospects and high technical thresholds. (4) Agrochemical sub-sectors of environmental protection high pressure, supply side contraction, and upstream warming.
In the long run, the investment growth rate of the chemical industry is still in a downward trend, and the supply of new capacity is limited. In addition, the implementation of environmental protection fees and environmental protection taxes and pollution discharge permits in 2018 will greatly strengthen the government’s law enforcement rigidity for environmental protection. The high pressure is normalized and the supply side is expected to continue to shrink. Under the background of strict environmental protection, the accelerated small and medium-sized production capacity will be withdrawn, and the phenomenon of “bad money driving out good money” will be improved in some sub-sectors. With the increase of industry concentration, the market share of leading enterprises will continue to expand, and the industry’s production capacity structure will be improved. Large adjustment. We have long been optimistic about leading enterprises with scale advantages.