There are comments that, to reach the November landmark oil production agreement, the organization of Petroleum Exporting Countries (the Organization of the Petroleum Exporting Countries, referred to as: OPEC) Member States spent several months to eliminate suspicions and concerns frequently with each other. Reaching an agreement may not be difficult, but it is another thing to do. This article has a certain reference significance.

Many energy analysts and former OPEC officials said that OPEC has its own production agreement cannot be executed precedent. OPEC agreement will usually indicate the specific reduction requirements for each member of the country. But to ensure that every member of the member states to comply with the provisions of the credit of the credit mechanism is relatively fragile, OPEC does not have an official mechanism to punish the violation of the commitment of the member states.
Sachs Goldman (Goldman Sachs), said the 17 cut since 1982, OPEC members cut the average level of only 60% of the level of commitment. Morgan Stanley (Stanley Morgan) said that during the 2000-2008 period, OPEC production average of 883 thousand barrels per day exceeded the quota.

Last Saturday, 11 non OPEC countries held a meeting in Vienna, OPEC headquarters agreed to a total of 558 thousand barrels per day, to further emphasize the importance of fulfilling the promise. OPEC member countries and non OPEC countries have not announced the details of the country’s production cuts, the time and manner of implementation of the agreement.
Oil traders and analysts say OPEC members often play games on production numbers to protect their own market share or to conceal oil output that is above its quota during the negotiations. Even the production figures are often controversial. OPEC will release two sets of data, one group is the organization to obtain the estimated output from the independent information sources, the other group is a member of the direct report of the number of output.

The lack of transparency has led some industry observers to determine the actual output of OPEC members by monitoring oil tanker loading and pipeline transport. These groups provide data to traders, oil companies, and OPEC members who want to monitor the output of other member countries through the data.
Geneva’s SA Petro-Logistics is such a company, the company has said it through the deployment of information sources in the world to obtain information on the network.
The company founder Conrad Gerber late in 2000 to “the Wall Street Journal (blog, micro-blog)” (The Wall Street Journal) said, if he is to disclose the information source of identity, then they might be beheaded. Gerber says he can’t call them when they’re in the office, because their cell phones are being monitored.
OPEC spokesman didn’t respond to requests for comment on the situation.

in early November, with the increase in raw material costs, the European standard thermoplastic plastics prices show rising trend. The price of ethylene and propylene increased 30 euros / ton, while the styrene monomer reference price rose 40 euros / ton.

The reason is mainly the price of crude oil reached a high in October, in addition to the depreciation of the euro.

The initial goal of producer pricing is higher than that with the rising prices of raw materials is consistent or slightly, but the actual prices of most polymers compare the extent of rising single cost price.

We believe that PTA mainly lies in the main factory changed the strategy, in factories often take to cut production, maintain industry profits, and this year the factory most take as little as possible production, overhaul, but when there is profit from the surface of a large number of hedging, and generate the day the amount of warehouse receipts, the processing fee has been maintained at a low level.

According to statistics, the current PTA processing fee of 500 yuan / ton wandering around, and the better processing fee is market price rose laid the foundation, more to stimulate the enthusiasm of enterprises to start PTA.

Up to now, the domestic PTA operating rate to 72.3% (near to maintain effective production capacity of 46 million 5 thousand tons). But overall, the domestic PTA industry is still excess capacity, eliminate backward production capacity period. Once the PTA processing fees rise, may have to stop the old device when the PTA supply a stirring among the dry bones, increased, while the market price or restricted.

in the factory often taken to cut production, maintain industry profits, and this year the factory most take as little as possible production, overhaul, but from the disk profit when a large number of hedging, while generating huge warehouse, the processing fee has been maintained at a low level.

Nearing the end of 2016, look back at the first half of this year, the overall general chemical products rose, crude oil rebounded sharply, but PTA is the least volatile chemicals, still in the same place.

Fluctuate so small the main logic is to change the attitude of the PTA factory, which between PTA and PX upstream industry evolved into the internal game PTA game between the factory, the old hope to eliminate backward equipment through the processing fee competition, the main purpose is to accelerate the industry reshuffle.

Leave the market in the short and far east Xianglu petrochemical PTA plant, this year in a state of relative balance of supply and demand, supply and demand good in recent years, but the processing fees this year stock market has been in a low level, the end of the two quarter and the three quarter remained at 200-300 yuan / ton low position, but better than the first quarter of two quarter, most remain at the level of 400-500 yuan / ton, compared with the previous years data, processing fees at 600 yuan / ton for most of the factory is a reasonable level.

The reason is difficult to expand the processing fee

In order to stabilize the production cost of agriculture, the price of natural gas used in the production of chemical fertilizer has been the national pricing. From November 10th of this year, the national adjustment policies, the full liberalization of fertilizer gas prices, the current policy implementation has nearly January, what is the reaction of the fertilizer market?
At present, China’s fertilizer market is in the traditional off-season, sales decreased. In Meishan Sichuan chemical fertilizer distribution point reporter learned that, as the main varieties of fertilizer urea prices, basically maintained at 1480 yuan per ton up and down, more stable.
Several fertilizer companies in the southwest reporter learned that the current enterprises in order to cope with the cost of the policy landing may bring increased, have lowered this year’s fertilizer production plan.

Some of the chemical fertilizer production enterprises also take this opportunity to adjust the industrial structure, the development of new products with higher value-added technology.
Overcapacity structural adjustment curtain
Because the price of fertilizer, directly determines grain production cost, therefore, over the years, fertilizer gas prices by the national pricing, so, why should the release of fertilizer gas prices?
Reporters learned from the China Nitrogenous Fertilizer Industry Association: in order to adjust the structure, compression capacity, the state in 2010, 2013 and 2015 three times the price of chemical fertilizers were adjusted. After the three price adjustment, fertilizer with gas rose 0.68 yuan per cubic meter,

At present, there is excess capacity in 2015 overall, China’s fertilizer production capacity of urea fertilizer, as the main products for 82 million tons, while the year domestic urea consumption is only 55 million tons, so fertilizer gas market reform will directly promote the structural adjustment of the chemical fertilizer industry.
Industry experts said that such a adjustment is also consistent with the national implementation of the sustainable development strategy.

Academy of Social Sciences researcher Li Guoxiang China: by 2020, Chinese fertilizer to achieve zero growth after 2020, we should realize the reduction of fertilizer, the intention of course is to optimize the production capacity, promote the reform of the supply side.