chemical industry at present, the United States WTI February crude oil futures on Wednesday (December 28th) closed up $0.16, or 0.30%, at $54.06 / barrel. February Brent crude futures Wednesday closed up $0.13, or 0.23%, at $56.22 / barrel. A quiet holiday market prices rose slightly, maintained since mid 2015 highs near the market, and the organization of Petroleum Exporting Countries (OPEC) in January 1, 2017 to launch production cuts.

In December 29th, the Guangdong area was the light of market transactions, toluene reference price 5600-5650 yuan / ton down (Sha Tin tank), buying Guadan trading market downturn. A toluene Market in Jiangsu area, to discuss the toluene 5520-5520 yuan / ton (Zhangjiagang tank), the industry market enthusiasm is not high, light trading. Beijing and Tianjin toluene to discuss the market average, the toluene to discuss the market 5450-5500 yuan / ton, the downstream business inquiry, the real single volume light. In Shandong to discuss the market of toluene light, toluene about 5800 yuan / ton, multi port fluctuations, downstream businesses operating enthusiasm is low, the real single talks guadan. Qingdao Lidong aromatics plant running smoothly, toluene price down 50 yuan at 5700 yuan / ton. The price of us toluene market rose 1 cents a gallon, FOB US Gulf price 235.95-236.05 cents / gallon.

Near the New Year holiday, middlemen and terminal downstream market enthusiasm, the supply is relatively abundant, no actual transaction support, and the downstream oil market demand up sluggish, buying downturn, intraday narrow down. Business agency analysts believe that short-term market consolidation will be a stalemate of toluene.

Abstract: the balance of supply and demand situation in 2017 the domestic methanol market will be in the East China market as the center, and the main consideration of balance between the new incremental import in the East China region new mining an important source of olefin demand and supply. Under this line, we in 2017 overall anticipation is the supply and demand of methanol methanol or the existence of the time difference, after the first strong weak. See details []

Local trends

2016 is the commodity bull market annual plastics futures prices higher oscillation

Abstract: the 2016 is the commodity bull market, plastics futures prices throughout the year higher oscillation, 1705 contracts in December 12th hit a new high in recent 10000 yuan / ton near finishing oscillation. Although the 2016 production capacity of PE has entered the intensive period, but due to demand better, the overall trend of the price of plastic is not bad, constantly low elevation, high breakthrough. See details []

The alcohol market supply situation will continue to rise the price of methanol is expected to surge

Abstract: since mid December, at the end of the tense capital and long profits double negative factors weighed, methanol futures futures prices relatively high diving, the mainland market valuation pressure greatly resolve. The methanol market supply situation will continue, the price is expected to rise in methanol oscillation. See details []

The article by Gade chemical network editing, reproduced please indicate the source.

Abstract: Recently, the listed companies Chitianhua announced yesterday, is expected 2016 loss of 300 million to 360 million yuan. Notice that, in 2016 the company chemical business by the main raw materials (coal) the dual impact of rising costs and urea, methanol prices continued to slump, operating profit decreased significantly. At the same time, the company intends to make provision for impairment of gas head urea production device and its related assets involved. See details []

The integration of automotive battery industry coming high quality battery capacity is not excessive

Abstract: the end of November, the Ministry issued the “automotive battery industry standard conditions (2017)” (Draft) (hereinafter referred to as the draft) show that the lithium ion power battery monomer enterprises annual production capacity from the previous “not less than 200 million watts” to “not less than 8 billion watts, about 40 times higher. See details []

In 2017 the supply and demand of the existence of the time difference of methanol, methanol or after the first strong weak

“This year the overall profitability of the coal chemical industry is also good, although prices have great impact on the cost of coal chemical products, but prices also rose sharply.” LUZHENG futures researcher Pu Chengzhu said. A central China coal chemical industry sources told reporters that this year the domestic coal chemical industry operating situation is generally optimistic, but except for fertilizer production.

“Domestic urea industry overall overcapacity, prices continue to decline, some of the old urea enterprises because of technical problems, the production cost is relatively high, more serious loss. However, this year the urea market better than last year.” Pu Chengzhu said.

The other coal chemical products of methanol has become the focus of the market. “After entering the fourth quarter, the domestic methanol market continued good news, methanol imports to Hong Kong to fall, demand continued stable olefin. Changzhou food and Jiangsu sailboat two sets of olefin plant put into operation before the demand, the overall market is facing low inventory, supply shortage situation.” CITIC futures researcher Shen Liping told the methanol futures Daily reporter said commodities rose collective devaluation, increased transportation costs and crude oil prices strong, are constantly pushing up the price of methanol.

It is worth noting that, in December 23rd, the Tariff Commission of the State Council issued the “notice” on the 2017 tariff adjustment plan, decided to cancel the export tariffs on fertilizer and fertilizer, and appropriate to reduce the three yuan fertilizer export tariffs. The industry believes that in 2016 China’s exports of urea fell to the freezing point in recent years, the abolition of tariffs for domestic market and export bring some support, but in the long run, it is difficult to change the overcapacity and loss of business situation.

In this regard, the industry calls for improvement of coal chemical industry to accelerate the urea futures, futures market, to help companies use futures tools service production and operation. As the energy and chemical species, if urea and methanol futures listed, among other varieties will have more opportunities for arbitrage.

High international oil prices in a narrow range. Last week, Brent futures settlement price of $54.99 / barrel, an increase of $0.08 / barrel, or 0.15%, the range of 54.46-55.35 U.S. dollars / barrel. Last week, WTI futures settlement price of $52.96 / barrel, an increase of $1.03 / barrel, or 1.99%, the range of 52.49-53.3 U.S. dollars / barrel. The Russian ambassador to Turkey was assassinated, German truck butt event brought geopolitical risk; OPEC and Russia have said it will implement cuts lead to optimistic market sentiment, maintain prices at a higher position. But for the United States shale oil production and crude oil exports in Libya may be a substantial increase in concerns, but also to suppress the formation of oil prices, so the overall maintenance of a narrow range of oil prices.

OPEC confidence in the market will become the main factors affecting oil prices fluctuations. OPEC reached a reduction of 1 million 200 thousand barrels / day agreement, the actual implementation of the degree of reduction has become the focus of market attention. Market volatility has become the main factor affecting oil prices. Saudi Arabia, Iran, Iraq, and non OPEC major oil producing countries, Russia, have said they will strictly enforce the agreement, and some countries have notified customers last week that it will reduce supply. OPEC market for the real implementation of the confidence of production cuts, oil prices last week to support relatively high. In January 1st next year will begin to cut production, the country will reduce the output of the relevant measures to reduce output volatility will become the main factors affecting the volatility of oil prices.
U.S. shale oil production has become a major factor in oil prices. The United States crude oil production from the beginning of 9 million 230 thousand barrels a day, reduced to a year low of 8 million 420 thousand barrels a day, as oil prices rise, the number of active drilling rig, at the end of the year to increase production to 8 million 780 thousand barrels / day, the annual output of V font, highlighting the shale oil production for high oil prices elasticity. OPEC frozen postpartum, hedging shale oil manufacturers jumped $55 in oil prices hit the long-term price of crude oil, crude oil futures term structure more smooth, the current market expectations of shale oil increment is limited, will not affect the production effects, whether the future of shale oil and the actual yield rate will exceed expectations, will become one of the important factors affecting the oil price fluctuation. Domestic petrochemical market: polyester industry chain spreads continue to expand, acrylic acid and ester industry boom high.

Petrochemical products prices rose three last week (+11.5%), butadiene acrylate (+8.78%), butadiene rubber (8.45%), spreads up the top three for butadiene – liquefied gas (up 15.19%), propylene – naphtha (up 10.56%), caprolactam benzene (up 8.71%).
Raw material to support the acrylic industry continues to rise. Acrylic acid market continued to rise in the domestic market to support the acrylic acid, the cost of equipment manufacturers started under pressure, the market spot tension. Acrylic week average price increase 500 yuan / ton, butyl acrylate week average price increase 500 yuan / ton, acrylic acid acrylic spreads by 4310 yuan / ton up to 4681/ tons, up 6.88% over the past three months, acrylic acid acrylic spreads were 757 yuan, 1902 yuan, 4042 yuan, or larger, industry into the high boom interval.

Decline in the cost of polyester industry chain spreads continue to expand. The market offer stabilized after a gravity drop, PTA prices declined slightly, the overall market weak finishing MEG. The decline in costs led to the continued spread of polyester industry chain spreads, polyester -PTA& ethylene glycol spreads around +284 yuan / ton (6.56%). Polyester -PTA& ethylene glycol spreads 9-12 month average price of 2933343538384203 yuan, the price rose nearly $1300. PTA spreads over the same period the average price of 450 yuan, $448, $573, 812 yuan, the price difference rose by $362, the industry boom up.