China is the world’s largest carbon producer, production capacity of nearly 7 million tons, accounting for about 42% of global output accounted for nearly 46%. After the early after the rapid expansion of China’s carbon black production capacity growth rate of decline is expected in about 230 thousand tons this year. In addition, the supply side reforms will accelerate the process of integration of the tire industry, small scale, high energy consumption and serious pollution of enterprises will be eliminated, and the large scale and comprehensive utilization of energy, good environmental governance standards of the enterprise will further expand the development space.

Carbon black is the main downstream tire industry

Car sales this year than expected, tire demand increased significantly, which will play an important supporting role in the upstream of carbon black. Data show that in November this year, China’s automobile production and sales continue to maintain growth, the growth rate of the production and marketing chain and rose more than 10%, production and sales record. In addition the overseas market demand to pick up will also enhance the export volume of domestic tire.

Shandong as China’s tire production and export of a large province, the first 11 months of this year exports of inflatable rubber tire 210 million, growth of 14.7% over the previous year. Tire exports in November 19 million 465 thousand, the monthly export rebound again, growth of 17%, an increase of 38.3%.
Recently several tire enterprises issued a notice that, from January 1, 2017 2% increase to 3%, including Bridgestone, Goodyear and other international brands. Bridgestone is part of all steel tire product price increase of 3%, Dalian Goodyear parts truck tire specifications prices rose 3% to 5%, Fengshen TBR tire price increase of 2% to 3%.

manufacturers currently PTFE by environmental pressures limiting the production of more parking, the market overall operating rate remained at 4 or so, plus near the end of the year, stockpile purchases increased, PTFE manufacturers price trend. However, the downstream demand has not improved. Dispersion resin quoted in the mainstream 4.2-4.5 yuan / ton, the price is mainly to discuss the actual, the recent overall inventory low, stable production and marketing.

In December 29th, Quzhou Jiangtian fluoride chemicals Co Ltd general level of PTFE dispersion resin factory price 50000 yuan / ton, the normal driving device, the enterprise can go off. Wuhan Feiteng sub PTFE sales price 55000 yuan / ton, the annual output of 1000 tons, price negotiable, the actual inventory is acceptable, delivery smoothly. Shandong Dongyue PTFE dispersion resin factory price 42000-44000 yuan / ton, the price adjustment, ordinary suspension of fine powder price 35000 yuan / ton, the actual transaction price negotiable, annual production capacity of 35 thousand tons, equipment operating normally, can go off. Jiangsu Meilan Chemical Group Co., Ltd. common PTFE dispersion resin factory price 43000 yuan / ton, suspended powder price 42000 yuan / ton, the actual transaction price negotiable, annual production capacity of 35 thousand tons, the enterprise can go off. Shanghai East fluorine chemical limited company of science and technology of PTFE dispersion resin factory price 43000 yuan / ton, the normal construction, enterprise can go off.

Overall, R22 upstream raw materials enterprises underemployment, low inventory, domestic R22 prices at 9433 yuan / ton; upstream raw material chloroform market price remained at 1570 yuan / ton, the price change is not big, the cost of PTFE supporting surface; downstream fluorine plastic products demand in general, no more good improvement. Is expected to continue steady situation in the market of PTFE plate.

[comment] Gade chemical chemical network recently, the domestic DOP market decline across the board, the real single atmosphere to keep quiet. The face of weak end demand, coupled with the raw material costs continue to decline, pull effect weakened, negative factors superimposed, bearish sentiment is aggravating, the spot lack of interest.

In February 28th, Ningbo AEKYUNG DOP factory price 8600-8700 yuan / ton; it benefits the normal operation of the device, today’s price down 50 yuan / ton 8350 yuan / ton; Qilu plasticizer DOP factory price down 50 yuan / ton price in 8400 yuan / ton. Luxi Chemical Company butanol offer temporary stability, the implementation of 6400 yuan / ton. The current total capacity of 240 thousand tons of factory two sets of equipment, equipment operating rate into about 8, mainly sales of the surrounding area, moderate inventory, delivery smoothly. Jiangsu Hua Changzheng butanol offer temporary stability, the implementation of 6800 yuan / ton. Butanol factory annual production capacity of 120 thousand tons, the plant near full load operation, low inventory, sales remained stable. Wanhua chemical butanol products offer temporary stability, the implementation of 6600 yuan / ton; unitoperahon normal, annual production capacity of 300 thousand tons, a small amount of inventory, the main contract for customers.

Market outlook, expected demand outlook is subject, whether manufacturers or holding the goods will be ship based, but is the real single poor, the focus is still dropping space, but based on losses, still maintain Yindie, simultaneously pay attention to raw material trends.

Titanium dioxide branch secretary Deng Jie investigation of rubber industry enterprises, the annual price of titanium dioxide criticism full understanding of the situation, the Secretary General Deng put forward all sorts of data downstream of the signal is not good, the price of titanium dioxide is the formation of collapse”.

Since October, many paint enterprises began to withstand the rising raw material cost pressures, has announced the adjustment of product prices.
Gamma PGA
It is reported that, according to incomplete statistics, paint companies shutting down the number as high as more than and 700, shutting down the coating project of up to more than and 40. Health, environmental protection has become a new trend in the future development of coatings. Abandoned small workshop style production mode, do not need to change the environmentally responsible production concept, it has no pollution to the environment, no harm to human body, can cause this notion allows the industry companies to continue to take on the road of sustainable development. At the same time, vicious competition of low price radical homogeneous products. In the process of elimination of backward production capacity in the chemical industry, high pollution and high emission industries will be the focus of remediation industry, the country will also according to shutting down a number of backward production capacity, serious pollution of the paint enterprise, and eliminate a number of backward production equipment, technology and products.

The reform of the upstream and downstream industrial chain of titanium dioxide, the elimination of backward production capacity, improve industrial concentration, realize the value of time. A rise in the price of raw materials, downstream enterprises and end users unchanged “shortage” change is “closed”, the industry chain is facing quality and reduction, the essence of high value product upgrade cost of high-quality products is “supply side reforms”.

2016 to 13th Five-Year during the past, China’s economy is in orderly sustainable development, various industries have a “crisis”, namely “danger” and “opportunity” coexist in the historical period.

Titanium dioxide rose, and 2016 throughout the year, gives the impression of “surge”, to understand the situation of titanium dioxide people “surge” is just 2016, 2015 did not experience the winter cold can know; TDI rose, is a crazy price, a market panic; Resin, solvent rose up, all raw materials have risen, rubber paint companies, enterprises and other industries meng;

In the plastic industry association representatives proposed antitrust investigation of the application to the NDRC, although there has been no relevant information to reflect this application will be rejected (because the application should be the main enterprise), but sharp fluctuations in prices for raw materials in plastic or on behalf of the downstream industry has given a question. Individual enterprises also want to take this forward to the paint industry Titanium dioxide Antitrust, President of China Coatings Industry Association Sun Lianying is extremely concerned about this, indicating Titanium dioxide Branch and the relevant departments in written report, Titanium dioxide Pay a branch will timely report the market to avoid the sun, on the lower reaches of the contradiction should not.

2016 all raw materials soared, most want to survive. But in the face of great scourges like the price surge, but the enterprise is also overwhelmed, the price of titanium dioxide seems to have a high degree of concern, but also across the board, prices of raw materials, lead paint, plastic and paper industry, the market always has “Voices of discontent.” we look at the change rules and comprehensive on the market.

December 22nd – the December 22nd environmental trimer evening announcement, the company and the Hebi lvneng WorldCom Petrochemical Industries Co signed a “strategic cooperation framework agreement, will cooperate in the construction of comprehensive utilization project of 1 million 500 thousand tons of coal tar and coal tar pitch”. The total scale of the project is expected to 5 billion 300 million yuan, is expected to start fully completed within the next thirty months, trimer environmental responsible for organizational construction,

providing engineering design, civil construction and other solutions. Trimer environmental revenue of 5 billion 698 million yuan in 2015, the project on revenue in 2016, net profit does not constitute a significant impact.

in December 25th, the environmental protection law twelve twenty-fifth meeting of the NPC Standing Committee voted through, which is China’s first single tax laws to promote the construction of ecological civilization, will be put into practice on January 1, 2018.

The environmental protection law, will start from the tax lever to make the enterprise more sewage will pay more, less sewage can enjoy tax relief.

Analysts believe that tax revenues will increase sharply after levying environmental tax, environmental tax levied each year is expected to scale up to 50 billion yuan, environmental monitoring, water and solid waste sector will be the first to benefit.

Forced corporate emissions

since November 2016, prices rose aromatic products. According to the business community monitoring, aromatic products prices rise significantly, especially the hydrogenation of benzene to benzene or up to 81.81%, or 76.77%, toluene or up to 19.86%, a number of products rose up to 2016 highs.

At the end of November, the international crude oil prices rebounded again open commodity chemical industry a new round of uplink channel, especially for tighter supply of products brought up an opportunity.

Benzene prices rose with the hydrogenation of benzene

November 1st ~12 month 14 days, benzene prices rose 2350 yuan / ton, or 43.44%. this is pure price since May 2015 for the first time exceeded 6000 yuan / ton, but still tied outside and the price of the market, after the market offer highs.

The reason is mainly the following two points: In November, Sinopec listing price and the market price spreads gradually widened, the spot market supply is tight, the market without low supply, holding the goods to market speculation rising offer rising petrochemical price and the market price spreads widening, petrochemical price kept up space, listing price up regulation. Secondly, the outer benzene prices continue to rise, the domestic market price to stimulate the formation of benzene.

As the hydrogenation of benzene to benzene related products since November, prices also surged, the market price from 5370 yuan / ton rose to 7920 yuan / ton, just over a month, up 2550 yuan / ton, the overall increase of 47.49%. the reason is that on the one hand the industry losses, enterprise comprehensive hydrogenation of benzene the operating rate is not high, but the downstream just need not reduce, resulting in spot market shortage, natural Jan Huojin price; the other is benzene prices strong, the two spreads continued to widen, provide the price for the same reason for hydrogenation of benzene.

Strong pull up the soaring price of styrene toluene

Styrene industry chain prices strong pull up, showing strong momentum to rise on the downstream linkage. On the one hand, the downstream products of ABS, EPS, styrene butadiene rubber (19335105, 0.55%) prices rose more than 10%, stable manufacturers started, to form a stable support for the whole industry chain of styrene; on the other hand, the upstream product benzene styrene continued upward outside a certain extent to stimulate the domestic market and domestic market supply of benzene. Tight price is hard to find, the industry of bullish prices, Sinopec raised storage space, the listing price increase homeopathy. The linkage effects on the lower reaches of the whole industry chain to promote the styrene prices.

Since December, the domestic market was soaring prices, prices rose about toluene to 5850~5950 yuan / ton (tank), rose nearly 600 yuan / ton at the end of 11, also a record highs for the year. At present, the domestic port east toluene inventory changes less, inventories increased slightly, trading atmosphere light temporarily. When the traditional off-season demand, winter temperatures, based on the expected demand shrinking downstream industries such as paint, and near the end of the year, the factory based on clear expectations. From the supply perspective, the supply is relatively stable, holding the goods inventory cost gradually high, with very price mentality.

Aromatic market or welcome back

In the days before the meeting of the Huaian chemical enterprises and financial solutions online promotion and Jiangsu Thailand online trading platform + financial services supply chain solutions signing ceremony, according to Jiangsu Thailand biotechnology to reflect the current shortage of chemical market, short-term there is still upward momentum.

The chemical industry analysts believe that the international crude oil price shocks, the market fundamentals support high rise aromatics. Benzene, styrene, toluene and other product prices are different degrees of pull up, no strong positive fundamentals, but the external support higher, the domestic spot Kongpan fried up, electronic disk Bikong strong, is not short off-season. In addition to the downstream after a period of follow up digestion, though limited, but still within the scope of the bear. Near the end of the year, the supply is relatively stable, there is no demand upward trend, the next plate price or aromatics fell back, but fell less likely to continue to follow up, the fundamentals of product and environment influence.

Recently, domestic aniline Market Focus offer higher volatility, manufacturers offer to follow the trend of raw materials rose with the helpless. High cost, aniline manufacturers accept Co.; conflict is getting stronger, coupled with the industry started low, the spot market is tight, some manufacturers do not report no goods disc.

In December 19th, Chongqing Changfeng an annual output of 25 thousand tons of aniline plant December 6th parking maintenance, the original plan in December 17th about driving, now postponed for a week. Jiangsu Yangnong an annual output of 30 thousand tons of aniline plant in August 26th September 23rd to restart the parking overhaul. Today the price rose to 10350 yuan / ton, acceptance from mentioning. Good sales, stock. Jilin Cornell 1 sets an annual output of 180 thousand tons of aniline unitoperahon near 8. Today the aniline price stability, reported at 10330 yuan / ton acceptance from mentioning.

Good sales, low inventory. Aniline unit full load production of Shandong Jinling King 2 sets of 30 thousand tons / year and Dongying 2 sets of 100 thousand tons / year. Today the aniline price stability, Dongying price 8750 yuan / ton cash King factory, offer 8770 yuan / ton cash factory, plus 180 yuan / ton acceptance. NCIC 1 sets of 100 thousand tons / year aniline unit load into 6, because the benzene supply shortage, 2 sets of 30 thousand tons / year aniline parking device. Aniline price rose 350 yuan / ton, 10350 yuan / ton, the price of the price of cash acceptance, implementation in December 17th.

Overall, the current high prices of some raw material benzene, aniline manufacturers said that raw material prices are too high at present, acceptance is limited, is expected to offer no lack of high resistance. Although the week of aniline Market is still narrow upward, but many manufacturers offer because of the cost of upward with the rise, the market outlook rose with the weak, with a narrow range consolidation.