Zhou Xiaochuan, the former governor of the People’s Bank of China, said that if there is a full-scale trade war between China and the United States, even if the direct impact on the economy is small, market sentiment changes may also hit China.

Zhou Xiaochuan, who just retired this year, said that the tariff imposed by the United States on Chinese goods is not very important in terms of economic scale. Despite this, the impact on market confidence may have an impact.

“Everyone may get nervous,” Zhou Xiaochuan said in an interview with Bloomberg Lacqua. “No one really understands. Suddenly a trade war broke out. In terms of stock market investment, everyone may change their minds.”

He said that this kind of behavior is far more profound than the actual impact on the economy. Zhou Xiaochuan was interviewed at the Amboise Forum in Cernobbio, Italy.

At the time of the trade war, China has already faced a policy-induced economic slowdown. This prompted leaders to relax their leveraged program in case of future economic downside risks.

“Minsky moment”

Zhou Xiaochuan warned in October last year that China should guard against the threat of “Minsky moment”, that is, the risk of sudden collapse of asset value. The concept is named after Heyman Minsky, who believes that a long-term bull market could lead to a major collapse. China’s renminbi has fallen more than 6% since mid-June, making it the worst performing currency in Asia; China’s stock market has entered a bear market.

Zhou Xiaochuan said on Friday that it needs to be vigilant. China’s top priority is to avoid asset bubbles. “We should keep the currency floating with market supply and demand and avoid any form of distortion,” he added.

He said that globally, it is necessary to strengthen the supervision of financial assets, and stressed that the global monetary authorities have long maintained the risk of policy easing after the financial crisis.

“This should be a relatively short-term measure,” he said. “If it lasts too long, it is very dangerous.”

A senior government official revealed in an interview that the Mexican mining group may restart the San Martin mine in early 2019, the largest underground mine in Mexico, which was discontinued more than a decade ago due to strikes by workers.

Carlos Barcena, Minister of Economy of Zacatecas, where the mine is located, said that the Mexican mining group has started mine repair work and is expected to be completed and put into production in the first quarter of 2019.

A company insider familiar with the situation confirmed the plan but was not allowed to be interviewed. The company spokesperson declined to comment.

The San Martin mine was discontinued in July 2007 due to labor conflicts with the National Miners Union (SNTMMSRM) under Napoleon Gomez, and Napoleon Gomez is currently serving as a senator. Before the shutdown, the mine produced about 8,000 tons of copper and 19,000 tons of zinc in 2005.

Earlier this year, a group of workers who participated in the strike agreed to change their demands by the National Union of Independent Alliances in order to resolve the protracted conflict. Last week, at the request of the workers of the National Union of Independent Alliances, the government responsible for resolving labor disputes decided to end the strike.

But last Thursday, a spokesperson for the National Miners Union (SNTMMSRM) said that the real miners are still on strike and the coalition will file a lawsuit on the decision to end the strike.

Monex analysts said the project restarted to increase the Mexican mining group’s annual sales by 1%.

On September 6, the London LME market three-month futures zinc closing price of 2441.00 US dollars / ton, the price rose. Spot price 2469.50-2470.50 US dollars / ton, spot zinc prices rose. On September 6th, the LME market zinc ingot futures traded 120259.00 hands, the market trading activity was general, and the inventory decreased.

BobPatel, chief executive of Lyondell Basel, has predicted that the global polyethylene (PE) market will remain tight this year and next.

Patel said in the company’s second-quarter earnings conference call: “Last year, our global ethylene and polyethylene capacity utilization rate is close to full load. If we look at the supply and demand changes in 2017-2018, we will find that supply growth exceeds The proportion of demand growth is less than 1%. For high-density polyethylene (HDPE), the demand growth rate in 2018 will exceed the supply growth rate by about 1.5%. HDPE accounts for approximately 70% of the PE production of Leandersale.

Pate expects that global PE supply and demand growth will be close to equilibrium in 2019, while HDPE demand growth will once again exceed supply growth. “If the capacity utilization rate drops by 1% by the end of this year, in my opinion, we are still in a very tight market. There will not be too much capacity to put into production in the next few years,” he added.

According to a Reuters report in New York, the US Energy Information Administration said in a two monthly report released on Friday that US crude oil production increased by 231,000 barrels per day, an increase of 2%, reaching a record of 10.674 million barrels per day in June.

The agency also raised its estimate for May by 1,000 barrels per day to 10.4 million barrels per day.

US crude oil production has been growing and is close to Russia and Saudi Arabia, the two largest oil producers. According to a Reuters survey, Saudi Arabia’s daily production in August was 10.5 million barrels, and Russia’s daily production in July was 11.2 million barrels. It is expected to maintain this level in August.

This increase reflects the increase in production in Texas, where production increased by 165,000 barrels per day to 4.4 million barrels per day, an increase of 3.9%. Production in the Gulf of Mexico also rose, rising by 154,000 barrels per day to 1.7 million barrels per day, an increase of 10.3%.

Exports of crude oil and refined products increased from a month ago. Crude oil exports rose nearly 200,000 barrels per day this month, setting a new record of 2.2 million barrels per day, more than double the amount in June last year.

Export increased coke production to reduce downstream fertilizer

After the consolidation in January, the domestic ammonium sulfate market reappeared in the late August. Last week, the domestic mainstream transaction price was 520~690 yuan (ton price, the same below), and the weekly increase was about 3%. Recently, the prices of enterprises in various places have been firm, and some regions have exceeded 700 yuan, showing a steady trend.

Shandong trader Zhang Yi said that most of the recent production enterprise inventory has been transferred to traders’ warehouses or ports, and coal chemical enterprises in Shanxi and Inner Mongolia have even reached zero inventory, which laid the foundation for the steady rise of ammonium sulfate.

Export orders drive demand

China Chemical News reporter learned from the port importers and exporters that due to tight supply in northwestern Europe and the small supply of Russia and Belarus in September, the international ammonium sulphate orders began to increase in mid-to-late August, driving the market price to rise steadily.

It is understood that the recent closure of the SECO Fertilisants plant in France has reduced the capacity of 100,000 tons/year of ammonium sulphate; due to production problems in many local factories, the supply of granular ammonium sulphate in northwestern Europe has become increasingly tight; Brazil’s willingness to find goods has increased due to insufficient local supply. The new demand for coking ammonium sulfate in northern China appears. It is planned to find 100,000 tons of goods from China from September to October, and the price is higher than the domestic market.

This round of international orders has increased, allowing many exporters to increase their efforts to purchase inventories, further stimulating domestic supply and the transaction price has also increased. This has brought about a new round of growth in the long-stayed export market, providing a basis for the future of ammonium sulfate.

Environmental protection boost production pre-reduction

According to the person in charge of Henan Xuchang Changsheng Environmental Protection Technology Co., Ltd., the second round of environmental protection inspectors continued to deepen. In August, the inspection team settled in Henan and Shanxi, and the operating rate of local coke enterprises continued to decline. In Jiangsu, in late August, the coking enterprises in Xuzhou were once again suspended from production, and the driving time was not fixed, resulting in a reduction in the supply of coking ammonium sulfate and a steady increase in prices. In Xinjiang and Inner Mongolia, most coal chemical companies were in an overhaul state in August, further reducing social supply. For example, when the Inner Mongolia Datang Coal Gas Company shut down and repaired in late August, ammonium sulfate was cleared, which became one of the reasons for the promotion.

Meng Jianjie, manager of Zhengzhou Dayou Gas Marketing Department, said that the recent use of natural gas in many coal-fired boilers in various places has led to further reduction of ammonium sulfate produced by desulfurization of coal-fired boilers. It is expected that this reduction in production will continue.

Autumn stocking starts early

Feedback from Inner Mongolia, Hebei and other places indicates that in August, due to the reduction in supply, traders prepared for the fall preparation in advance. The increase in port demand, the reduction of production by environmentally-friendly coke enterprises and the supply of fertilizer in autumn have created a source of competition, which has caused traders to worry about tight supply and prepare for storage in advance. Recently, the ammonium sulfate of mass production enterprises has rapidly flowed to the stocks of traders, resulting in a decrease in social circulation, and it is impossible to rule out the possibility of speculation in the market.

According to Wang Liwen, business manager of Xinjiang Xintian Coal-to-Gas Co., Ltd., due to transportation reasons, most of the ammonium sulfate produced by the company is digested locally. Now it is basically out of stock, and even if it is in stock, it is difficult to transport it to the inland market. Affected by the overall market situation, the local ammonium sulfate price has steadily increased, and the current ex-factory price has reached more than 450 yuan.

Market participants believe that the recent depreciation of the renminbi will continue to favor the export market and form price support. However, environmental factors have also affected downstream compound fertilizer companies, resulting in no significant increase in demand for ammonium sulfate. Therefore, domestic exports and fertilizers are lagging behind, and whether there is a need to make up the surplus can continue to be uncertain. September is expected to be a key node in the trend of ammonium sulphate market, and should be focused on.

According to the report of the Chinese Academy of Social Sciences, natural gas will be the fastest growing energy product in China in the next 30 years. By 2030, China’s natural gas demand will be nearly 520 billion cubic meters, and by 2050 it will exceed 800 billion cubic meters.

At the 7th annual meeting of the Global Energy Security Think Tank Forum held in Beijing recently, the report “China Energy Outlook 2018～2050” issued by the Chinese Academy of Social Sciences shows that under the joint effect of supply-side reform and economic growth path changes, In the next 30 years, China’s energy demand structure will undergo major changes. By 2050, coal will account for less than 40% of energy demand; by contrast, the share of natural gas demand will rise sharply and is expected to increase to more than 20%.

From the perspective of the application of natural gas, the report believes that the future increase in the power sector will come from natural gas power generation. Natural gas power generation will emerge from the current position as a peaking power source and become one of the main forms of power generation. It is estimated that natural gas power generation will reach about 335.1 billion kWh by 2020, about 582.2 billion kWh in 2030, and 1 trillion kWh in 2050. At the same time, natural gas power generation will also be used for heating, to some extent to make up for the decline in thermal power.

Experts said that the sharp increase in demand for natural gas in the future will also bring new issues to the field of energy security. Liu Qiang, secretary general of the Global Energy Security Think Tank Forum, said: “In the future, the main influencing factors of China’s energy security will come from natural gas, which requires us to seriously study the energy security of natural gas supply.”

Houston reported on August 26, according to Thomson Reuters statistics, Venezuela’s daily exports of crude oil to the United States in July fell to 494,400 barrels in the first three months, indicating the Venezuelan National Oil Company (CIS/PDVSA) Crude oil production is affected by the seizure of its assets.

Statistics show that July is the first month that Venezuela’s daily export volume of crude oil has fallen below 500,000 barrels since January to March this year.

US oil producer ConocoPhillips began to detain Citi’s overseas assets in May this year, trying to profit from a $2 billion arbitral award. ConocoPhillips’ legal action prevented CFO from entering most of its terminals in the Caribbean, thereby limiting the continued reduction of Citizen’s oil exports.

Most of Venezuela’s customers in the United States now receive less and less Venezuela. According to statistics, Venezuela had 30 ships of crude oil delivered to US ports in July, a decrease of 3 ships from June. The data shows that the volume of transactions in July was 12% lower than that in June and 22.5% from the same period last year.

Russia is the leading fertilizer producer in the world and one of the top five suppliers in the international market. In the next eight years, with the expansion of production capacity exceeding the growth rate of domestic consumption, fertilizer exports will continue to accelerate.

The main export products will be urea, potassium chloride and sulfur-containing ternary fertilizers. The upgrading and expansion of the equipment will increase the ability to supply the international market, and Russian producers have sufficient phosphate resources, and they have the ability to take advantage of the growing The global compound fertilizer market.

According to the National Bureau of Statistics of the Russian Federation, the compound fertilizer growth rate of Russian fertilizer production in 2010-2017 was 3.35%. In 2017, the chemical fertilizer production reached 22.5 million tons of nutrients, most of which have already been exported.

The fertilizer industry development plan adopted by the Russian government at the end of March requires that by 2025, fertilizer production will increase by 5.5 million tons (compared with an average annual growth rate of 2.76%), which means that exports will further increase.

Nitrogen production is expected to increase from 10 million tons last year to 12.3 million tons by 2025; production of phosphate (P2O5) and potash (K2O) is expected to increase from 3.9 million tons and 8.6 million tons in 2017 to 4 million, respectively. Tons and 11.7 million tons.

The continuous increase in production over the past seven years has led to an increase in exports. In 2010-2017, the compound annual growth rate of chemical fertilizer exports was 3.02%, reaching 34.3 million tons. In 2017, exports of potassium chloride accounted for 32% of total exports, and exports of urea and ammonium nitrate accounted for 19% and 10% of total exports. Compound fertilizers and ammonium phosphate exports accounted for 17% and 10% of total exports.

Russia’s urea production has grown steadily over the past seven years due to upgrades to existing facilities and the commissioning of new installations. From 2010 to 2017, Russia built two urea plants and three large-particle urea plants. Eurochem’s second large-grain urea production line in Novomoskovsk was commissioned in 2010. Phosagro commissioned a 495,000 tonne/year pellet urea plant and a 500,000 tonne/year large particle urea plant in Cherepovets in 2012 and 2017 respectively. In 2012, Acron built a 335,000 tonne/year urea plant in its Veliky Novgorod. In 2015, Acron built a 717,000 tonne/year large particle urea plant near the original ammonium nitrate plant.

In the past seven years, most of the urea plants in Russia have been operating close to capacity or slightly above capacity. However, by 2017, Togliattiazot used only one of its two sets of 480,000 tonne/year urea plants. The company resumed production of a second production line last year. As a result, production increased from 552,200 tons in 2016 to a maximum of 720,200 tons in the past six years.

Russian companies plan to significantly expand urea capacity in the next few years. Acron expects to build a 600 ton/day urea plant in Veliky Novgorod in the summer of 2018, the company’s sixth urea plant, and is upgrading its existing production line. After the project was put into operation, the plant has a total capacity of 3,650 tons/day. Methanol producer Metafrax plans to start construction of a synthetic ammonia-urea-melamine co-production unit in Perm Krai this year, with a urea capacity of 56.2 tons/day. Togliattiazot has secured a loan this year for the construction of a third urea plant with a capacity of 2,200 tons per day; the plant is scheduled to go into production in 2020. Uralchem ​​plans to complete the technical transformation of the Perm plant in 2019, increasing its capacity by 254,000 tons per year. Eurochem also expands urea production at its Nevinnomyssk plant. By 2025, Russia’s urea capacity is expected to increase by more than 1.8 million tons / year.

In recent years, Russia has also proposed some urea projects, but the financing has not yet been completed. For example, Kuibyshevazot announced in July 2017 that it has formed a joint venture with MaireTecnimont to develop a new 1500 tonne/day urea project in Togliatti. Ammoni is also considering the second phase of the project “Ammoni -2″, which signed a preliminary agreement with the parties including Russian oil company Tatneft in February 2016.

The increase in production will boost Russian urea exports. Russian farmers’ demand for urea is growing, but it is still low compared to ammonium nitrate; according to the Russian Fertilizer Producers Association (RAPU), urea consumed to local farmers last year was 293,500 tons, compared to 22.37 tons in 2016. . Delivery to industrial buyers also showed slow growth; shipments in 2017 increased from 887,300 tons in 2016 to 889,500 tons.