Chemical product prices fell, valuations fell

According to relevant data, at the beginning of December 2012, the A-share chemical industry index fell by 6.83%, which was weaker than the overall performance of the market. Among them, the price of chemical products fell and valuations fell.

Judging from the various sub-sectors in the chemical industry, the oil trading, inorganic salt, phosphate fertilizer and pesticides sectors were among the top losers, which was mainly constrained by oil price shocks or falling product prices. We believe that the downstream demand of the chemical industry is still relatively sluggish as a whole, and the market demand for all sectors in the industry is generally insufficient. In the short term, we still maintain the judgment that the entire industry is operating in the bottom region, and maintain the industry's short-term “neutral” rating.

Industry Week Review:

Summary: In the near term, crude oil prices in the external market continued to fluctuate, and the prices of most domestic chemical products fell. Outside the disk butadiene, natural gas (New York spot) prices fell 6.0% and 8.7% a week, domestic **, butyl rubber, MAP: 60% powder, BDO, titanium dioxide: anatase prices fell -4.2%, - 3.8%, -3.6%, -3.3%, and -3.2%; in the price increase category, the price of ** has been very unstable in the near-term, rising from 150 yuan/ton last week to 250 yuan/ton; external disk natural gas, MEG and EDC Recorded gains of 12.7%, 10.1% and 3.7% respectively. Due to a time lag in the transmission of crude oil prices, in the context of poor demand, product prices will still slide below. Crude oil: Crude oil prices fluctuated higher this week. WTI and Brent crude oil prices rose by 0.7% and 0.1% respectively in the week. The Eurozone crisis continued and the market waited on the US fiscal cliff, causing the current crude oil price to fluctuate. Although the economic data of China and the United States continues to improve, it is still necessary to pay attention to the settlement of the US fiscal cliff. Caustic soda: This week, caustic soda prices remained stable. Restricted by **, the domestic chlor-alkali enterprises started with low load, the caustic soda market maintained stable operation, the atmosphere in the trading venues was mild, and the downstream demand remained generally stable, supporting the stable operation of the caustic soda market. The merchants remained cautious on the caustic soda market. Sex attitude.

Downstream companies have a certain degree of resistance to rising prices of caustic soda, and prices of caustic soda are expected to remain stable. In some regions, there may be a slight downward trend.

MDI: Yantai Wanhua's June pure MDI listing price was: 19,100 yuan/ton for bulk water and 21,900 yuan/ton for barrels, which was significantly lower than that in October. Affected by this, domestic pure MDI prices fell by about 8.8% this month. Due to the recent resumption of repairs and installations, the market remains pessimistic about MDI prices.

TDI: The TDI listing price of Chuzhou Dahua, Shanghai BASF, Gansu Yinguang, etc. was around 22,500 yuan/ton in December, and TDI dropped sharply by 16.7% this month.