Chemical Industry Research Report Week 28: In June, China's manufacturing PMI was 50.9% (month-on-month +0.3pcts), and it has continued to be on the gloomy line since March.
The price of titanium dioxide fell in the early stage due to weak demand. Since June, the price of titanium dioxide and the price difference between titanium dioxide and titanium concentrate have stabilized. Under this price/price difference, some production capacity has been on the verge of breakeven.
The current domestic demand is on a good condition, while overseas resumption of work has driven demand restoration. Some manufacturers increase the price this week, and so the price of subsequent titanium dioxide is expected to rise.
Capital expenditures of listed companies in the pesticide industry are concentrated in the head companies, and the stronger the stronger. According to calculations by 22 sample pesticide listed companies, the Q1 construction in 2020 reached a high of nearly 10 years. The gaps among pesticide companies in terms of cost control, product layout, technical strength, and integrated layout have also expanded significantly. Focus on subdivision products such as pyrethrins, innovative drugs (acetonitrile, chlorfenapyr, chlorantraniliprole, etc.), glufosinate, and pesticide intermediates.
The domestic 12-inch wafer fab will enter the intensive construction period in the next few years, and the superposition of trade events will catalyze the growth of domestic semiconductor materials companies. SMIC, Yangtze Storage, Huali Microelectronics and other domestic fabs will be put into production one after another, which will accelerate the growth of domestic semiconductor materials companies. The localization of semiconductor equipment upstream of the semiconductor industry will also promote the localization of semiconductor materials.
Under the influence of the epidemic, the demand for PVC gloves was strong, and the price of PVC paste resin increased significantly. At the same time, some PVC paste resin enterprise installations were overhauled in June, the market supply was weak, and downstream demand was strong, supporting the strong price increase. At present, the production of glove products enterprises maintains a high level, and many companies expect to increase the production capacity of gloves. The demand for PVC paste resin glove materials is good. The maintenance plan of some enterprises in July is superimposed to support the price of PVC paste resin. It is expected that the subsequent supply of PVC paste resin will continue Tight, prices will remain high.
Source from xyzq