J-S Jacques, chief executive of Rio Tinto Group, said: “In the last quarter of 2018, we achieved solid business performance, especially in our copper assets. Last year, we further strengthened our portfolio and continued to invest in high-quality growth projects. In 2018, we completed the Amrun bauxite project ahead of schedule, started the AutoHaul (%) project, approved the investment in Koodaideri and Robe River projects, and signed the Oyu Tolgoi power supply agreement. Meanwhile, we have completed a $8.6 billion divestiture of assets, including the Grasberg copper and gold mine in Indonesia and our remaining coal assets. We will strictly implement the strategy of “value is higher than output”, strictly allocate capital, continue to promote the strategic objectives of the company, and provide shareholders with high returns in the short, medium and long term.

In 2018, Pilbara iron ore shipments amounted to 338 million tons (100% equity basis), an increase of 2% over the whole year of 2017.

In the fourth quarter of 2018, Rio Tinto announced the successful launch of the automatic train system in the Pilbara mining area, approved a $2.6 billion investment in Koodaideri, and approved an investment of $1.55 billion to maintain the capacity of Robe River Joint Venture, a joint venture that Rio Tinto owns 53% of and will invest $820 million in.

The bauxite output in 2018 was 50.4 million tons, 1% lower than that in 2017. Third-party shipments increased by 2% to 32.8 million tons. In the fourth quarter of last year, production declined in the short term as a result of the commissioning work of the Guinean Bauxite Company (CBG) and the transfer of operations from East Weipa bauxite to Amrun bauxite in Queensland.

The output of electrolytic aluminium was 3.5 million tons, down 3% from 2017, mainly due to the continuing interruption of labor supply at the non-Rio Tinto-managed Becancour Smelter in Canada.

The output of copper is 634,000 tons, 33% higher than that in 2017, and higher than the guidance interval. It mainly reflects the strong performance of Escondida and the increased production of Kennecott, a higher quality copper mine.

The output of high titanium slag is 1.1 million tons, which is 15% less than that of last year. The reason was the disruption of Rio Tinto Fer et Titane’s production in the second quarter and the intermittent shutdown caused by the labor dispute between the contractor of Richards Bay Minerals and its employees in the first half of last year.

Iron Ore Company of Canada produced 4% more in the fourth quarter than in the fourth quarter of 2017. However, production in 2018 was 20% lower than that in 2017, as the strike at the mine severely affected production in the second quarter.

Other milestones in the quarter included the first shipment of bauxite by Amrun bauxite six weeks ahead of schedule, and the signing of the Framework Agreement on Electricity Purchase by Oyu Tolgoi and the Mongolian Government.

Price Trend

Business associations: This week, the maleic anhydride market maintained a steady consolidation trend (1.14-1.18)

According to data from business associations, the average price of maleic anhydride offer by the end of the weekend was 7,100.00 yuan/ton (including tax), and the offer was steadily rising.

II. Market Analysis

Product: This week, the domestic maleic anhydride market as a whole showed a steady trend of rising.

Industry chain: First of all, the domestic unsaturated resin start-up rate has decreased this week, the main intention of replenishment before the Spring Festival is cautious, but the short-term periphery is good, the domestic maleic anhydride market maintains high and strong; secondly, the focus of maleic anhydride factory quotation in mainstream areas is explored. Due to the support of crude oil production reduction, the performance of peripheral news is still acceptable, the price of raw material n-butane is stable, the cost pressure of the plant is supported, and the selling quotation is slightly increased. The price of maleic anhydride has been loosened due to the rise of pure benzene. However, in the short term, the profit margins of maleic anhydride from benzene and butane processes are difficult to improve; finally, the demand of downstream terminals is not good, and the factories are mainly on the lookout.

3. Future Market Forecast

At present, domestic maleic anhydride market profit has not changed much. It is expected that the overall market will continue to consolidate next week. Individual small rises, or the overall price will be the same as this week, according to the analyst of maleic anhydride products of Business Society Chemical Branch.

As of January 16, Butadiene FOB Rotterdam spot 878-882 US dollars/ton; Butadiene FD Northwest Europe spot 843-847 Euro/ton.

As of January 16, the closing price of butadiene FOB was US$1169-1171 per ton in Korea and US$1229-1231 per ton in CFR of butadiene in China.

On January 10, the PX commodity index was 64.80, which was the same as yesterday. It was 36.72% lower than the peak of 102.40 points in the cycle (2013-02-28), and 42.26% higher than the low of 45.55 points on February 15, 2016. (Note: Period refers to 2013-02-01 to date).

Recently, the domestic market price trend of p-xylene has been temporarily stable. Pengzhou Petrochemical Unit has been running steadily. Urumqi Petrochemical Unit has started 50% of its operation. Fuhaichuang Aromatic Hydrocarbon Unit has been in shutdown. Other units have been running steadily for the time being. The domestic market supply of p-xylene is normal. The market price trend of p-xylene is temporarily stable. The opening rate of PX plant in Asia is less than 70%. The closing price of PX plant in Asia increased by 16 US dollars per ton on January 10. The closing price was US$1038-1040 per ton FOB in Korea and US$1058-1060 per ton CFR in China. More than 50% of PX plant in China need to be imported. The rise of foreign price has a positive impact on domestic market price of paraxylene, and the intra-site price maintained 8,100 yuan per ton.

On January 10, the price of WTI crude oil in February rose to 52.59 U.S. dollars per barrel, an increase of 0.23 U.S. dollars. Brent crude oil in March rose to 61.68 U.S. dollars per barrel, an increase of 0.24 U.S. dollars. Crude oil closing price rose slightly, which supported the price of downstream petrochemical products. The price trend of paraxylene market was temporarily stable. Recent textile industry prices have risen, downstream PTA market prices have risen slightly, PTA prices have recently risen slightly. The average offer price in East China is raised near 6400-6600 yuan/ton. As of the 10th day, domestic PTA start-up rate is about 77%, polyester industry start-up rate is about 82%. In addition, the market price of upstream production and marketing is generally lower, PTA market price is expected to rise slightly in the later period.