North China sales company Sinopec Qingdao refinery, Tianjin: xylene ethylene and

Shijiazhuang refinery implementation of 5600 yuan / ton.

Sinopec East China sales company xylene: Yangzi BASF, Zhenhai Refinery quote out 5600

yuan / ton.

Liaoning huajintongda chemical Limited by Share Ltd xylene quotation implementation of

5710 yuan / ton, price stability.

Market summary: Recently, U.S. crude oil was trading near $52.29 a barrel, or about

0.33%; in Europe rose significantly, continued to rise. Affected by the crude oil

production is expected to rise, prices plunged xylene.

Finance recently, the U.S. Energy Information

Administration (EIA) issued a short-term energy outlook report, expected 2017 U.S. crude

oil production will rise to 9 million barrels per day, while the United States in 2018

crude oil production will rise to 9 million 300 thousand barrels / day.

In January 23rd, the domestic parts xylene market overview:

The solvent of xylene to discuss the market reference price in 4700-5600 yuan / ton,

heterogeneous xylene reference 4950-5600 yuan / ton.

Xylene solvent market offer 5700 yuan / ton (Zhangjiagang tank), domestic heterogeneous

xylene market offer in 4700-5750 yuan / ton (tank).

The central branch of Sinopec Changling refinery, xylene: Wuhan petrochemical, China

Petrochemical 5550 yuan / ton.

Sinopec Southern China Guangzhou Petrochemical Company solvent xylene: the implementation

of 5850 yuan / ton, Maoming petrochemical price 5850 yuan / ton; heterogeneous xylene:

Guangzhou petrochemical, Zhanjiang Dongxing are the implementation of 5850 yuan / ton.

CNOOC president and executive director Yuan Guangyu said the new year, the group’s capital expenditure increased from 600 to 70 billion yuan, 50 billion 300 million yuan more than last year, a 19% increase to 39%, is 3 years since the first increase spending, 48% for overseas projects, pointed out that from 2016 to 2018, leading overseas also has a significant and very good project in the development of Appomattox Egina Stampede, for example, oil and oil, oil, and said that this year is the overseas investment boom.

On the other hand, the next 3 years, CNOOC’s rolling production target was slower than that in 2016, which is expected in 2016 rolling production was 476 million barrels of oil equivalent, this year is expected between 4 million 500 thousand to 460 million barrels of oil equivalent next year, ranging from 4 million 550 thousand to 465 million barrels of oil equivalent in 2019, ranging from 4 million 600 thousand to 470 million barrels of oil equivalent, reflected in the future 3 target than last year low.

Yuan Guangyu pointed out that since this year to increase investment spending, and enhance the workload and cycle time to yield, so the next 3 years yield is low.

The group said that this year the investment target is to $51 a barrel on London Brent oil, expected this year there will be 5 new projects put into operation, of which 3 in the mainland. Among them, comprehensive adjustment of Penglai 19-9 oil field project Chinese sea and Enping 23-1 Oilfield Group has been put into operation, the other three projects are BD gas field, China in Weizhou 12-2 oilfield two and Indonesia Canada Hangingstone project. At present, there are nearly 20 projects under construction, that this year prices will show a moderate upward trend, from last year to less than $30 a barrel, up to now about $50, reflecting the industry for the better.

In addition, CNOOC chairman and CEO Yang Hua said that lower oil prices are challenges for oil sands operations last year, but the group emphasizes the development of effective capacity, if the oil costs continued at a high level, must have the market reaction; if the business does not make money how can sustainable development, the group will try to reduce the business cost and improve productivity benefit.

according to people’s Daily reported on 22, from the China National Petroleum Corporation was informed that in 2016, international oil prices continued to slump, production and management difficulties facing severe challenges, China’s oil and gas exploration achievements, the annual domestic new proven oil and gas equivalent of more than 11 tons, of which oil reserves 6.49 million tons, natural gas geological reserves of 598 billion 500 million cubic meters.

As of 2016, PetroChina has 10 consecutive years of domestic new 10 tons of proven reserves equivalent to high growth, give full play to the role of domestic resources “ballast”, as a solid foundation for the sustainable development of China’s oil industry lay.

According to the chairman of China oil Wang Yilin introduced, since 2014 the international oil prices, oil China adhere to tighten the scale of investment for 2 consecutive years of decline, the cumulative decline of nearly 50%. But the pressure is not pressure investment in exploration and development, exploration and development investment of more than 120 billion yuan last year, accounting for about 60% of the total investment in the company. In keeping funding at the same time, technological innovation is an important support in the high growth of oil reserves.

“12th Five-Year” period, major scientific and technological achievements China oil made only in the field of geological exploration have a number of 40. For example, a large area of lithologic reservoir in Changqing Oilfield three-dimensional exploration technology, new proven oil reserves of 3.69 tons in Longdong area; Tarim Oilfield complex piedmont seismic strengthening research, the new natural gas geological reserves of 300 billion cubic meters.

Exploration and development achievements also support the steady growth of oil and gas production. In 2016, the oil again “oil and gas demand”, annual oil production exceeded 1.05 tons, 1 tons remain above the level of 22 consecutive years; 98 billion cubic meters of natural gas production, production doubled in 10 years.

Industry chain: International: U.S. WTI crude oil futures on Thursday (February January 19th) closed up $0.29, or 0.57%, at $51.37 / barrel. March Brent crude futures Thursday closed up $0.24, or 0.45%, at $54.16 / barrel. The U.S. energy information administration released days data show that U.S. crude oil inventories unexpectedly increased, larger than expected gasoline inventories rose. The Spring Festival is approaching, with the downstream stocking basically completed, a sharp drop in demand, traders operating low mood, industry cautious attitude, operation mood gradually slowed down. More wait-and-see sentiment mentality, market personnel gradually withdraw from the market, offer a narrow down.

Market forecast:

From the supply side, demand before difficult to release, and the new plant put into production during the Spring Festival, the factory inventory will increase, the holiday market supply is expected to be more abundant, the subsequent need to focus on factory equipment operation, export orders and downstream demand recovery. At present, the current price of four carbon materials after ether within the range of business psychology, factory shipments still normal, relatively stable mentality. And most businesses early years after delisting, cautious market, the trading floor is expected to significantly reduce the MEK market the next will be consolidation, volatility is not.

This week the domestic market within a narrow range of butanone. Monday (January 16th) domestic enterprises offer price at 6870 yuan / ton, by the end of the week in January 20th domestic enterprises offer price at 6855 yuan / ton, down 0.22% to three month period, an increase of 12.19%.

Market analysis:

Products: MEK narrow market decline. Overall, week by CNPC Southern China billing price down 200 yuan / ton, the local market offer then went down, but as part of the downstream stocking completed, inside the new single transaction co.. As the New Year approaching fleet reduced, coupled with Shandong tight supply, sent to a number of delays, also lead to rising freight logistics, shippers offer is still too high. There are not many good fundamentals, until the weekend in East China to discuss the market reference price in 6750-6850 yuan / ton, since the Southern China market talks in 6950-7000 yuan / ton cash.

The industrial chain: 1, domestic mainstream two – port stocks remain relatively high, and the start of the week of toluene more downstream procurement terminal market turnover downturn, lack of capacity, but the high dollar support, supply, the cost of support and pre Holiday Stocking expectations, a handheld goods still very price exploration rose mentality, but downstream according to the needs of cautious buying. East China toluene market buying poor merchant price decline; Southern China market buying is weak, businesses cautious stability; North China talks light, downstream demand procurement, the real single turnover is relatively stable, the market is expected to maintain the shock consolidation pattern of toluene in the short term; 2, approaching the end of the manufacturers and the social stock spot market is still low. Nervous, shippers offer stable, the downstream end before the Holiday Stocking, logistics gradually outage, the new single turnover, the market upside is limited.

Industry: this week, the domestic TDI market tight spot, logistics gradually outage, shippers offer stable, short-term TDI market stalemate consolidation.

Market forecast

This week, the domestic TDI market price rose, stalemate consolidation, manufacturers and social inventory low, TDI spot market remains tight, shippers offer stable logistics gradually downstream outage, before the Holiday Stocking basically completed, expected short-term TDI market stalemate consolidation.

This week, the domestic TDI market price rose, stalemate consolidation. Offer at the beginning of the week the average ex factory price of 28514.29 yuan / ton, the weekend average ex factory price of 28557.14 yuan / ton, rose 0.15%, nearly three months of the total decline of 36.72%.

Market analysis

Product: this week, the domestic TDI stock shortage, holding the goods to offer a high mentality. Among them, the East China TDI market high consolidation, manufacturers and shippers no inventory, supply the surface tension, the downstream end market before the Holiday Stocking, offer to keep steady, Shanghai goods about 29000-29500 yuan / ton, domestic goods 27700-28000 yuan / ton; North China TDI market consolidation high spot, tight supply, holding the goods without inventory, buying more cautious downstream on-demand single procurement, domestic goods price 27700-28000 yuan / ton, Shanghai goods price 29000-29500 yuan / ton.

From the year 2016, PMI index steadily rose slightly, the first quarter is slightly lower than the 50%, the two or three quarter rose to more than 50%, the fourth quarter rebounded faster, rose to more than 51%, the annual average of 50.3%, 0.4 percentage points higher than in 2015, showed the positive factors in the economy increased, stabilize the situation gradually consolidate the good development trend is more obvious.

The effect of structure adjustment in 2016 was. The equipment manufacturing industry and high-tech industry PMI index by quarter rose steadily; high energy consuming industries in the first three quarters of PMI less than 50%, slightly higher than the fourth quarter of 50%. Consumer goods industry PMI trend is relatively stable, maintained at more than 51%.

The recent part of the circulation of important production material price and logistics costs continue to rise, bring some influence to the production and operation of enterprises. Production prices continued to rise to reflect changes in supply and demand, the economy pick up, accelerate the promotion of industrial production, promote the enterprise sales revenue, profits gradually improved.

But rising too fast may affect the capacity to process, do not rule out a large number of low efficiency of production may be re started. The rising industry prices will transfer to the consumer side, the cost of living rising residents. The price is expected to rise too strong, will cause excessive speculation, is not conducive to the smooth operation of the market. In 2017 to further consolidate the economic stabilization based on the one hand, on the other hand to seize the supply side structural reform of the main line, speeding up the supply side structural reform, improve the vitality of the micro economy, improving the quality and efficiency of economic development.

The price is always the most sensitive nerve of the market. In 2016, the domestic PC market showing upward trend shock, the annual increase of up to 36.36% year high in December, the reference of East China in the low-end mainstream injection level negotiations in 21200-22500 yuan / ton. This year, the world economic recovery is weak and the domestic economy is facing downward pressure of the environment, China has adhered to the supply side structural reform, domestic PC new capacity put into operation, the RMB exchange rate devaluation and other factors, to varying degrees of impact on the overall supply pattern of the domestic PC market, PC market competition situation, the market offer turbulence.

The first stage (1-2 months): Spring Festival stocking market low stronger shocks

1-2 months in 2016 low prices, East China in the low-end mainstream reference injection level talks in 16300-16600 yuan / ton, but compared to the fourth quarter of 2015, in a narrow range of pull up after the strong side shocks. Before the holiday, crude oil is low, the weak domestic economy have put pressure on the domestic market, trading trading weak, downstream manufacturers Spring Festival stocking enthusiasm is not high, many small Jiancang, but due to the devaluation of the RMB exchange rate, domestic and foreign PC production enterprises very price, give the market some support, in the high-end price and cost Huojin support, trader follow the narrow tilt, caution light.

Overall, the overall economic level weak situation based on the domestic market of PC Spring Festival stocking enthusiasm of the poor, the Spring Festival holiday before February, the downstream plant basically ready, manufacturers have a holiday from the city, the market demand dropped, basically there is no market price in the market, but the industry for the market outlook is expected to improve, traders reluctant to sell low-cost, newspaper how to maintain the high finishing concussion disc. The vacation of downstream work slow, once restricted market trading, but considering the spot supply, coupled with the late part of the device storage maintenance plan, positive support the market mentality, industry market outlook is expected to increase upward, offer holding firm, cautious trading.

Stock market without a solid foundation before the Spring Festival period of price rise or limited polyolefin

Abstract: it is understood that since the end of last year, or about 10% of the peaks of polyolefin prices, stock turnover slowed synchronization. Since last December, the seasonal demand into the off-season, the continuous rise in price which produced downstream supply of high resistance to.” The industrial futures analyst Pan Zengen told futures Daily reporter, in the price adjustment in the state, “do not buy or buy up” mentality has also exacerbated the gloomy atmosphere of the spot market. See details []

The oil and gas market rebalancing difficult market reform will further promote

Abstract: in January 12th, Chinese CNPC Research Institute of economics and Technology (hereinafter referred to as “the Research Institute”) issued the “2016 domestic and international oil and gas industry development report”, to make judgments on the oil and gas industry in the future 5 years development trend. See details []

Catechol, epichlorohydrin, spandex anti-dumping measures expire in 2017

Abstract: in November 7, 2016, Commerce announced: China’s imports of catechol, the autocorrelation of different countries and regions of epichlorohydrin and spandex products anti-dumping measures will expire next year. See details []

Years ago the supply and demand pressure still PP prices due to long-term supply pressure suppression in

Abstract: since January, the holiday tired library and the downstream receiving goods will lower than expected that the combined effects of PP1705 contract for 3% recent highs, due to the overall improvement of commercial atmosphere to stabilize rebound. See details []

Local trends

The basic chemical sector earnings down pesticide products are expected volume and price

Abstract: as of November 2016, the chemical industry chemical fiber manufacturing industry to reduce the inventory turnover days to 19.3 days, the stock fell to 36 billion yuan scale, inventory turnover and inventory scale were decreased to the lowest level since 2012. Low inventory level is expected to exacerbate market supply tension, promote the rising prices of chemical fiber products. See details []

Three breakthroughs in China’s value-added fertilizer industrialization

Abstract: in January 13th, held in Beijing the fertilizer value of Industrial Technology Innovation Alliance Annual Meeting 2016 news: 2016, value-added fertilizer in the national key project development plan, the national chemical industry standards and industry development to achieve a major breakthrough. See details []

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