Wide DOP market in North China area of Tianjin higher level spot supply is tight, the raw material of phthalic anhydride crazy increase, supporting manufacturers very price, higher center of gravity. Current market reference talks price 8600 yuan / ton.

Once the market has formed a large area of gambling speculation, the price will be completely out of control due to supply and demand. Methanol first appeared on the price, the international crude oil was $100 a barrel.

Outlook: narrowing the gap between supply and demand, to sustain the mad cow

The chemicals in the future, Zhao Chen believes that price rises may have reached the limit, the gap between supply and demand is not sustainable. With the prices, the supply side there will be more companies to resume production. In the off-season, the resumption of production is likely to focus on after the spring festival.

The first half of next year will gradually narrow the gap between supply and demand, but disappeared before the price rise will continue, the cycle did not finish, but the rally cap is the balance of supply and demand the highest cost marginal capacity cost line.

In the next two years to improve profit is used more than loan expansion, so the economy will have a cost advantage is stable, the leading enterprises can share and profitability remained at a high level in the city.

The biggest impact variable price next year will be the trend of changes of coal and oil prices.

GF Securities Guo Lei in the informative summit that the commodity market is still very effective, this part of the price on the strength of pulse along the entire economic recovery strictly go.

If the whole economic recovery pulse strength than the 9 this year, October is stronger, commodity prices have reason to create a new high. Suggestions from this part before the period of products, gradually backward transfer cycle.

To improve the supply side contraction, the pattern of supply and demand, the product cycle ushered in the boom period

The chemical industry dynamic price earnings ratio of PE was 44.43, still higher than the industry average of 26.90 to ten years, from the sub sectors, focusing on modified plastics, glass fiber, fertilizer and other industry valuations are low, and less than the industry average, soda ash, glyphosate industry affected the supply side reforms, operating rates rise, supply and demand structure improve the price, pick up, at the same time, urea, silicone rubber supply shortage, low inventory, demand recovery, industry boom.

Breaking times, new materials led industrial upgrading

The chemical industry will usher in the third inventory cycle – from local to breaking, breaking the stage of industrial pattern changes, emerging demand rise, led by fine environmental protection. Three materials will burst, OLED with its flexible crimp become the main display materials to replace LCD, the upstream industry chain intermediates and membrane materials will become the main development opportunity in our country.

1-10 month total fixed asset investment grew 8.30%, the chemical industry fixed investment fell by 3.30%, far lower than the industry growth rate of fixed asset investment, but year-on-year decline narrowed, in the production process of digestion period.

The supply side capacity, continue to deepen the reform of clearing the inventory cycle to restart the price rise, the devaluation of the renminbi under chemical products under the background of internal and external demand to pick up, the OPEC agreement under the crude oil prices continue to rise, on the effect of many factors, the chemical industry profitability improved significantly, 1-10 months year-on-year growth of 18.30%. The chemical industry is a new round of inventory cycle start, PPI chemicals continue to rise to date; domestic real estate in the future although there is a downward trend, but the infrastructure and vehicles to maintain steady growth, domestic demand is not too bad; the inventory cycle bottomed out to pick up in demand overseas, so the whole chemical industry, the first half of next year can continue to maintain profitability.

Oil prices due to rising production agreement, interim shocks, the long-term upward

In the chemical industry by its own cycle. At the same time, is also affected by external shocks, the oil price is the main factor. Since 2016, the international crude oil prices first dip rebound after September, the average price of $44.81 a barrel, with a OPEC production agreement, short-term oil prices keep rising trend, at the same time, prices bring us shale oil manufacturers resumption of production and opening increased number of U.S. crude oil rig, may make the international oil price shock period in the middle do not rule out, is likely to fall. In the long term, as the international crude oil supply reduction, steadily rising demand, prices rise.

The end is not the acquisition of billions Lomon titanium titanium dioxide industry mergers and acquisitions, but is just the beginning, in the future of the stock market, enterprise of domestic titanium dioxide will also carry out large-scale mergers and acquisitions, and ultimately the formation of oligopoly industry.

Titanium dioxide companies to accelerate the pace of listing
The past two years the international titanium dioxide giant capital operation is more frequent, DuPont titanium dioxide spin off the market, Huntsman acquired Rockwood’s Sahali and plans to promote the titanium dioxide business IPO listed. For some of the development potential of titanium dioxide enterprises, after the listing can bring a lot of money through the financing chain, improve the net assets of the enterprise, in a strong market situation to expand production capacity, reduce the debt ratio, improve capital structure, enhance the ability to resist risks, and create greater wealth. After the listing of enterprises, enhance the confidence of the financial institutions of enterprises, loans and other financial costs will be lower. High social reputation and a huge role in promoting the local economy, easy access to local government subsidies and support. Such as: billions to the success of mergers and acquisitions is the capital strength longmang. On the eve of mergers and acquisitions, billions to 7.62 yuan / share price to issue more than 1 billion 300 million shares, to raise funds of about 10 billion yuan, the successful acquisition of 100% stake in Lomon titanium industry.

Enterprises listed can not only raise a considerable sum of money, but also can be used to raise funds to finance corporate mergers, acquisitions, etc.. Listed companies are the most attractive long-term financing form, can fundamentally solve the needs of enterprises to capital, and thus improve and consolidate the status of the industry. For example: Shandong Dongjia in the titanium dioxide industry plays a very important role, and today the domestic titanium dioxide industry billions more have the right to speak. Sichuan longmang was indeed scenery, and today is to rely on billions power, this is the charm of listed companies. Successful capital operation will allow listed companies to become the biggest winner, and thus promote the pace of China’s titanium dioxide market.

Listed for titanium dioxide enterprises the advantages outweigh the disadvantages without doubt, but titanium dioxide enterprises listed and easier said than done. Such as Sichuan longmang, Shandong Dongjia two times the impact of the failure of IPO, May 2016, IPO said the start listing, has not been below the Jinzhou titanium industry. In addition, Guangdong Hui Yun titanium industry Limited by Share Ltd as early as 2013, began to prepare for the listing, but has yet to succeed. The titanium dioxide industry has always been considered to be of high pollution, high energy consuming industries high, the problem of environmental protection is the biggest obstacle to market. So, if you want to have a higher and broader space for development, but in business management, product quality and self-discipline, also attaches great importance to environmental issues, only to prevent low-level redundant construction, waste of resources, environmental pollution and other ills phenomenon, in order to the A stock market financing smoothly on the broad road.