Chemical Industry Research Report Week 17

This week's changes: international crude oil prices continue to adjust, which will affect the decline in the value of raw materials in the short-term. If the duration is longer, it will affect the willingness and rhythm of chemical downstream inventory replenishment. Profit is also affected by the decline in the value of finished products. Favoring the downstream end of the chemical industry chain, it is preferred to just consume chemicals such as vitamins, pesticides, fertilizers, and chemical fibers. Overseas epidemic situation fermentation, the demand for chemical products is worthy of attention, pay attention to mandatory consumer products and the segmented chemical products with a high proportion in Europe. In addition, April entered the quarterly reporting period, focusing on the 1Q exceeded expectations.

Sub-industry perspectives: (1) Xinhecheng ’s 1st quarter results exceeded expectations, which is expected to drive the market of the vitamin sector; pay attention to Shengda Biology and Zhejiang Medicine, and D3 raises prices to focus on garden biology; Enterprise resumption of work is proceeding in an orderly manner; the combined impact of environmental protection, safety and epidemic factors on the supply of the industry may be further intensified, accelerating the survival of the fittest in the industry. Pay attention to the impact of the development of India's epidemic situation on the domestic pesticide export market. The key recommendations are: the integration of industry chains, technology and single-product competitive advantages in the subdivided fields, Yanggong Chemical and Lier Chemical; the second is Baiao Chemical and Hunan Haili, which have a large price increase elasticity; Pay attention to the preparation company Adoma, as well as Limin shares and Guangxin shares. (3) International automakers have overcharged electric vehicles, and the short-term impact of the epidemic will not change the industry's mid-to-long-term trends. We continue to recommend the leading new lithium battery materials company, New State. (4) The demand for zeolites due to the introduction of diesel vehicles in China VI has increased, and the OLED business has entered a period of performance release. We recommend Wanrun. (5) Long-term optimistic about the undervalued leader Wanhua Chemical (the market value is significantly underestimated, large ethylene production is approaching, MDI returns to the price increase cycle after the epidemic), Hualu Hengsheng (the market value is significantly underestimated, the product price cycle is at the bottom, new projects continue Launch), Sanyou Chemical (viscose price increase).

Quick Weekly Quotes

The basic chemical sector rose 0.04% from last week, and the CSI 300 index fell -1.11% from last week. The basic chemical sector outperformed the broader market by 1.15 percentage points, ranking 9th among all sectors. According to Shenwan Classification, the basic chemical sub-industry saw larger gains: civilian explosives 7.36%, synthetic leather 7.04%, compound fertilizer 6.94%, daily chemical products 5.55%, other plastic products 2.15%

Price and operation trend of key chemical products

WTI oil price fell 7.28% this week to 16.94 USD / barrel. Of the 163 chemicals we tracked, 20 were up, 50 were flat, and 93 were down. Chemical products with the highest gains this week include: acetone (13.10%), acetic acid (11.78%), liquid nitrogen (10.36%), yellow phosphorus (6.02%), polymeric MDI (4.88%), bisphenol A (4.59%) , MMA (3.07%), POM (2.68%), DMF (2.43%), 95% ethanol (2.39%), etc.

Chemical fiber: Viscose staple 1.5D is priced at ¥8600/ ton, which remains unchanged. The price of 120D viscose filament is ¥36800/ton, which remains unchanged. The price of spandex 40D was ¥29,500 / ton, up 1.72%. The price of PTA in the internal market was ¥3170/ ton, down by 2.46%. Jiangsu and Zhejiang polyester staple fiber offer was ¥5,700/ton, down 9.52%. The offer price of polyester POY150D was ¥4,720/ ton, down by 2.68%. The offer price of acrylic staple fiber 1.5D is ¥12,800/ton, which remains unchanged.

Agrochemical: Hualu Hengsheng (small particle) urea price was ¥1680 / ton, down 1.75%. The price of 55% monoammonium phosphate of Hongda Chemical Granules was RMB 2,000 / ton, down by 4.76%. The offer price of Guizhou-Wengfu Group (64% brown) diammonium phosphate was ¥2150/ton, down 2.27%. The offer price of 60% crystal potassium chloride in Qinghai Salt Lake is ¥2,100/ton, which remains unchanged. The price of 51% powdered potassium sulfate in Lop Nor in Xinjiang is ¥3100, which remains unchanged. The offer price of glyphosate in East China remained at ¥21,000/ ton. The market price of glufosinate is RMB 1.25 million / ton, which remains unchanged. The offer price of East China pure pyridine was ¥17,000/ ton, down 2.86%; the market price of imidacloprid was ¥123,000/ ton, which remained unchanged. The price of Daisen manganese zinc was ¥19500/ ton, which remained unchanged.

Polyurethane: East China Pure MDI's quotation was ¥13,250 / ton, down 1.12%. East China Polymer MDI quoted ¥11,750/ton, up 3.07%. East China TDI quoted ¥9050 / ton, down 2.96%. The price of 1800 molecular weight East China PTMEG is ¥15250/ ton, which remains unchanged. The offer price of propylene oxide in East China was ¥7850/ ton, up 6.44%. Shanghai Bayer PC offers ¥18200/ ton, unchanged.

Chlor-alkali, soda ash: East China calcium carbide method PVC price ¥5350/ton, down 0.83%. The offer price of East China Ethylene Process PVC was RMB 5,412 / ton, down by 1.37%. The price of light soda ash was ¥1,310/ton, down by 1.5%; the price of heavy soda ash was ¥1,450/ton, down by 2.68%.

Source from tfzq