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.

The morning of December 8th 10 pm, Guangdong Huiyang District of Huizhou City Bulletin: the day at 3:25 in the morning, Huiyang new Huiyan expressway exit, a car carrying 27 tons of acrylic Jiangxi B brand heavy tractor truck and a truck collided, resulting in dangerous transport vehicle tank valve rupture, leakage of about 5 kg of acrylic acid. As of press, tank trucks have to stop the leak, the accident no casualties.

According to the briefing, the dangerous transport vehicles from Huizhou Dayawan Petrochemical District CNOOC five factory loading to Qingyuan overseas Chinese acrylic Industrial Park, traveling to the S358 line Huiyang new Xin Wei Hui salt highway exit, and a long autumn Xinxu bound for the direction of large truck collision causes traffic accidents.

After receiving the report, Huiyang district public security, fire, emergency, traffic, safety supervision, environmental protection departments and the new town government and other relevant departments immediately to the scene to carry out rescue.

The impact of the country’s industrial producer price index rose by about 1.5 percentage points. Among them, the mining industry prices rose 5.2%, industrial raw materials prices rose 2.7%, processing industry prices rose 1.4%. Subsistence prices rose 0.2%. Among them, food prices rose 0.3%, clothing prices rose 0.2%, the general commodity prices rose 0.4%, durable consumer goods prices were flat (change rate is 0).

Industrial producer price, non-ferrous materials and wire prices rose 4.4%, fuel and power prices rose 3.7%, ferrous metals prices rose 3.1%.

In 2016 November, the country’s industrial producer prices rose 1.5%, rose 3.3% (Note: Sina Finance created in October 2011 to the maximum, 2.3% expected, the former value of 1.2%).

Industrial producer prices rose 1.8%, rose 3.5%. 1-11 month average, industrial producer prices fell 2%, the industrial producer price fell 2.7%.

First, changes in industrial producer prices up

Industrial producer prices, the production prices rose 4.3%, affecting the country’s industrial producer price index rose by about 3.2 percentage points. Among them, the mining industry prices rose 14.8%, industrial raw materials prices rose 5.8%, processing industry prices rose 2.9%. Subsistence prices rose 0.4%, affecting the country’s industrial producer price index rose by about 0.1 percentage points. Among them, food prices rose 0.9%, clothing prices rose 1.1%, the general commodity prices rose 0.7%, durable consumer goods prices fell 1%.

According to estimates, in November 3.3% of the country’s industrial producer price index rose, price hikes last year is about -0.6 percent, the new price factors of about 3.9 percentage points.

Industrial producer price, non-ferrous materials and wire prices rose 9.5%, ferrous metals prices rose 8.7%, fuel and power prices rose 6%.

In two, the industrial producer prices were

Industrial producer prices, the production prices rose 2%,

since the middle of 2014 began to slump in international oil prices in recent years, the organization of Petroleum Exporting Countries (OPEC) finally resorted to cut price measures, wait to escape the $40 / barrel following the history of the bottom of the range, the blink of an eye has completed more than 10% of the increase.

As the downstream product of crude oil in oil prices, even Yang boost, domestic futures on the cash chemicals “cost support” good varieties, yesterday received a four with Yang, methanol is the “Star” revealed yesterday, tiaokonggaokai rose 4.77%. but with rising prices, the domestic chemical futures positions decline plate outflow of funds seems to be once again long sounded the death knell, chemicals and oil city in the spring of how far?
The bottom frame of crude oil chemical change mind “”
Crude oil has been “big brother” to go and play with the chemical “little brother” nearly two years frequently “against the tube, obvious independent trend, but OPEC a booster – production agreement, seems to make them begin to change mind”, follow the old oil.

Since the production agreement reached after the news, as of yesterday, the international oil two benchmark NYMEX crude oil, the main Brent is still in the rally since November 30th, just a few days, or more than 10%. Monday Intercontinental Exchange (ICE) weekly published data show that investors hold the Brent crude oil rose to around the highest net long positions.

Once the indifferent market ushered in the outbreak of the domestic chemicals in this week
As of yesterday’s close, the domestic chemical futures, futures fell slightly in addition to PVC, PTA, PP, methanol, plastics, asphalt, chemical and other varieties have received red. From the start on Friday, methanol or expanding, yesterday led to a 4.77% increase in domestic commodity futures market. Plastic, PP, asphalt, chemical yesterday rose 1.12%, 1.92%, 1.18%, 1.42%.
“The OPEC property agreement reached freezing, far beyond market expectations, to reach 1 million 200 thousand barrels / day, and non OPEC countries will cut 600 thousand barrels a day, Russia said cuts contribute half share, or 300 thousand barrels / day. The OPEC forecasts that the crude oil market itself will be in the 3 quarter of 2017 to return to the equilibrium of supply and demand, a frozen production agreement, further promote the balance ahead of the arrival of. As a chemical raw material upstream end, crude oil rose to directly stimulate the downstream chemicals short-term price sharply upward.” XinDa of futures manager Wu Yifeng said.

However, in Wu Yifeng’s view, this is only one reason to boost the price of chemicals. He believes that with the continuous improvement of domestic industrial profits, the supply side reforms, chemicals follow the black varieties, prices continued to move up the focus is also reasonable. With similar PE/PP renewable materials imports divided by environmental restrictions, methanol regional markets lead to increased imports, chemical fundamentals bullish sentiment continues and so on, are pushing up prices continue upward downstream chemicals. At the same time, the continuous depreciation of the RMB, raise the input probability of inflation, but also further enhance the commodity prices expected.
As the source of crude oil chemicals, the volatility often traction industry chain related variety trend, but this is not the only one relationship between crude oil and chemicals prices, due to the specific varieties and different.
Related analysts explained that the crude oil as the chemical source, its fluctuations tend to traction industry chain related variety trend. Specific to the variety, plastics, PTA, PVC, methanol and other chemicals and energy of crude oil was most closely related, and most of the time these varieties of crude oil prices are highly relevant. Of these varieties, once the crude oil will be more than doubled, from the cost of these varieties boost the formation; but because of the price conduction down a certain lag, so the energy chemicals prices may lag behind the rebound in crude oil prices.