Finance recently, the domestic market of cyclohexanone trend was flat, the venue to discuss the light. The spot market supply is tight, manufacturers sell, shippers offer rare wait for the right price to sell.

In November 29th, the domestic parts of cyclohexanone market overview:

The East China market negotiations in 8800-8900 yuan / ton; sent to Southern China to discuss the market in 9400-9500 yuan / ton of cash; many manufacturers to catch the main production, no new single trader, suihangjiushi.

The normal operation of Shandong Hualu-Hengsheng an annual output of 100 thousand tons of cyclohexanone, the main supply of adipic acid, an annual output of 60 thousand tons of cyclohexanone production at full capacity, this week lined up, the latest offer 8800 yuan / ton.

Industry consolidation period, the expansion of small factories out of Dachang

Recently, camel shares (601311, shares) announced that the company 1 billion kwh battery has been put into the project, according to the plan, the company will continue to build a total of 4 billion kwh of power battery capacity. In fact, camel shares speed power battery capacity of the layout has become the epitome of move, power expansion of the battery industry, including the Ningde times, China Xuan tech power battery supplier leading enterprises have actively expansion.

From the production data have been published, in the 53 major domestic battery production enterprises, only a handful of standard enterprise. In 2016, BYD (002594, shares) the existing production capacity of 10 billion kwh, to the end of the year production capacity will exceed 16 billion kwh; followed by the Ningde times 2016 production capacity of 6 billion kwh, is expected to end production barely touch line, will reach 8 billion kwh.

At 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.

In this regard, China Xuan Tech (002074, shares) President Fang Jianhua on the “Securities Daily” reporters, 8 billion kwh capacity constraints is the media and industry over interpretation. The capacity required and recommended directory and enterprises can get subsidies are not related. At the same time, he said, the government to raise the threshold of the intent is clear, namely to promote power battery industry mergers and elimination, improve the power battery industry competition environment. Fang Jianhua expected, the next 90% will be out of battery enterprises. In addition, the car brand director Hu Ming said that the industry should also regulate conditions of energy consumption, safety and environmental protection and other public index up constraint enterprises, not only from the enterprise production scale up limit. In the face of the policy adjustment, the reporter observed, on the one hand the industry leading enterprises competing to increase investment, expand production capacity, and more SMEs are slow to follow up the pace, to wait and see.

Titanium dioxide prices continued to rise this year, thanks to the countries’ capacity to “inventory” policy implementation, reducing inventory, manufacturers capacity cuts to pull up the market price of titanium dioxide. At present, rutile titanium dioxide the actual transaction price in 13300~14500 yuan / ton, anatase titanium dioxide, the actual transaction price in 9800~12000 yuan / ton.

Upstream raw material titanium sources of tension, the miners sell and continue to explore up will be stronger, imported ore very price offer, no reduction of titanium dioxide Market support. But since the beginning of winter, downstream of the paint market demand to maintain steady light, titanium dioxide prices continue upward momentum weakening. Expected short-term market price of titanium dioxide to rally hard again, market steady, turnover of more real single, a single representative.

The reason behind the price rise of titanium dioxide
Real estate: National Bureau of statistics data released in November 14th, the first 10 months of this year, the national real estate development and investment growth in the first 9 months of 6.6%, an increase of 5.8%. This year 1~10 month, the national real estate development investment grew 6.6%, the growth rate increased 0.8 percentage points compared to 1~9 months, real estate development and investment growth for 3 consecutive months to speed up. Even first-tier cities have introduced housing credit limit restriction measures, investors still seems to Chinese real estate industry optimistic about the prospects. The stable development of the real estate industry driven by the steady growth of the paint industry demand.

Downstream coatings industry: 1~9 months, China’s paint production reached 13 million 450 thousand and 400 tons, an increase of 7.4%. Among them, Guangdong Province paint production reached 2 million 474 thousand and 400 tons, an increase of 8.7%; Jiangsu coating production reached 1 million 694 thousand and 940 tons, an increase of 4.9%; Shanghai City paint production reached 1 million 509 thousand and 940 tons, an increase of 3.9%. The paint industry is the main downstream of the titanium dioxide industry, paint prices growth on titanium dioxide prices has played a supporting role.

The rally or will gradually closing

Environmental inspection teams stationed in the relevant provincial inspectors
July 2016 the first batch of central environmental inspection teams stationed in Mongolia, black, Su, Gan, Yu, Guizhou, cloud, Ning and other 8 provinces (autonomous regions) to carry out the work of environmental protection inspectors. In November 24, 2016 second batch of environmental protection inspectors work started, the formation of the 7 Central Environmental Protection Inspectorate, responsible for the 7 provinces of Beijing, Shanghai, Hubei, Guangdong, Chongqing, Shaanxi, Gansu (city) to carry out supervision and inspection work. Strict rectification, shutting down backward, heavily polluting chemical enterprises.
The United States changed the “R-134a preliminary anti-dumping

In December 1, 2016, the U.S. Department of Commerce announced amendments to the China imports from 1, 1, 1, 2- tetrafluoroethane (R-134a) anti-dumping preliminary results, including mandatory respondent companies Zhejiang Sanmei chemical Limited by Share Ltd (ZhejiangSanmeiChemicalIndustryCo., Ltd.) and Jiangsu Sanmei Chemical Co Ltd (JiangsuSanmeiChemicalsCo., Ltd.), all China exporters / weighted production taking the average margin of dumping were revised to 232.30%.

Local time at 11:30 on October 17th or so, the German chemical giant BASF group is located in Ludwigshafen chemical plant explosion occurred. The day of the explosion is a chemical raw material transportation pipeline, the pipeline has been cut off, steam cracking device and other related devices have been shut down.

Application for approval of ethylene glycol futures
China Securities Regulatory Commission on October formally approved the Dalian commodity exchange futures application of ethylene glycol. This means that the future of ethylene glycol futures trading from the more recent step. Ethylene glycol and LLDPE, PP, and PVC with ethylene derivatives, has a good customer base in the futures market, after the listing will make plastic futures industry chain varieties more perfect.

G20 summit during the decline in operating rates
Before the Opec summit in Hangzhou, the country for the high polluting industries to carry out strict inspection and control for phosphate fertilizer industry, the direct performance is the surrounding Anhui, Jiangsu, Henan, Hubei and other places sewage unqualified enterprises shut down all qualified enterprises device also remain low, but in December this year from the beginning of this year by the month, the second installment of the central environment protection inspectors work started, Hubei, Shandong, Henan and other places of chemical fertilizer enterprises operating rate decreased to some extent, the individual business unit or a full stop!
Billions intends 9 billion acquisition of Sichuan longmang

The evening of September 18th, billions billions will disclose the corresponding plans, price of 7.62 yuan / share issue 1 billion 300 million shares, to raise funds of about 10 billion yuan, of which 9 billion yuan for the acquisition of 100% stake in Lomon titanium industry. This means that the domestic titanium dioxide industry ranked second in the billions, ranked first, with 300 thousand tons / year titanium dioxide production income Lomon titanium capsule. In terms of the total production capacity of 560 thousand tons, will be among the first in Asia, a large global titanium dioxide production enterprises fourth.
Increasing the cost of transport vehicles

Ministry of transport, Ministry of public security, “Regulations on the administration of highway vehicles exceeding traffic” (hereinafter referred to as the “new regulations”) have been implemented since September 21st. In a nationwide joint remediation highway truck illegal overloading behavior special action, known as “the history of the most stringent limit of super order began to implement, have a direct impact on the fertilizer market, transportation costs increase, fertilizer automotive costs rose 10-30 yuan / ton; Qinghai, Xinjiang, Zhengzhou Railway Bureau reported a corresponding preferential tariff cancel.
BASF chemical plant explosion

South Korea’s titanium dioxide made anti-dumping affirmative preliminary determination
In May 26th, South Korea Trade Commission made anti-dumping affirmative preliminary determination for Joaquin rutile titanium dioxide, but decided the product not levy provisional anti-dumping duties.
Turkey PV products launched anti-dumping investigation

In July 1st, the Ministry of economy of Turkey issued an official communique, decided that domestic enterprises should apply, originating in the China PV (haiguanshuihao soil 8541.40.90.00.11) initiated anti-dumping investigations. Interested parties shall submit information to the local investigation organ within 37 days from the date of filing.
China chemical approved the acquisition of Syngenta
In August 22nd, Chinese chemical and Syngenta announced that the Committee on foreign investment (CFIUS) approved the deal. According to the announcement, the transaction is still pending antitrust assessment of the world’s national regulators. The transaction is expected to be completed by the end of the year.

The supplier has a high-tech polymer cosmos before the date of return to normal production. Since October 6th this year, the company announced its MDI and TDI business suffered force majeure factors, the impact of supply and demand in Europe for nearly three months has finally been resolved. A material business also said it will resume performance of a contract signed with the supply of nitrate and the latter Kos, MDI, TDI and other products will also return to normal delivery.
Although a raw material supply disruption by Cosmos distress in the past three months, but the wind and rain to grow up in the supplier did not sit back: “the company carried out a large number of alternatives to purchasing, in a timely manner to all partners to provide the latest news and discussion and countermeasures. Through unremitting efforts, we have passed through this difficulty.”

All the moves to the world record of the cosmos also highlight the determination: “the company will do everything possible will not be influenced by the resistance factors to a minimum, and strive to complete the business indicators published 2016.”