First, the price trend

The average price of maleic anhydride as of the end of this week was 9285 yuan / ton (both tax), down -0.11%.

Second, the market analysis

Products: into July, maleic anhydride factory new single cargo is poor, turnover has slowed down, local high prices have loosened, but the cash flow less restrictive decline is not obvious, but the July is still lack of maleic anhydride market downturn risk.

Industrial chain: demand point of view, although in June and July, maleic anhydride market downturn is not light situation, but the resin factory operating rate remained at 40% near the operation, with the resin raw materials, maleic anhydride, styrene successive , So that the downstream production costs of the resin plant highlights the pressure, lower profit margins, but also suppress the current downstream of the new single market will, high turnover continue to pressure. Supply point of view, at present, benzene supply point of view short-term incremental slow, but the butane method point of view, with the east side of the supply side of the supplement, the market supply pressure will continue to ease, or give the price certain operational resistance.

Third, the market outlook forecast

Chen Lin said: At present, the lack of domestic maleic anhydride market just need to stimulate the next, the sale of fear to continue to stalemate, because the downstream price floating limited, terminal environmental protection and other factors constraining the downstream high-priced resin procurement capacity, so in July Point of view, maleic anhydride downstream pressure will gradually warming, the market deposit line space.

Titanium dioxide market supply continued to lead to 2017 since the European market prices continued to rise, and is expected to continue to the third quarter, which will lead to paint and other downstream industries profitability problem becomes more obvious.

According to the European market, some procurement and sales information that, due to continued tight supply, the third quarter, titanium dioxide prices are generally expected to rise, the negotiations are very small.

Titanium dioxide prices continue to rise for a variety of reasons, including the European and global titanium dioxide industry, the merger and reorganization, as well as the past few years the manufacturer strict inventory control, as well as Huntsman Finnish titanium dioxide plant earlier in 2017 occurred Fire and so on.

Is expected in the third quarter, the price of titanium dioxide agreement is likely to rise in the current price of 180 to 350 euros / ton.

Although the price increase in the third quarter contract price, but according to the supply, suppliers and product level differences, the expected price increase is generally about 250 euros / ton, up to 300 euros / ton.

In the third quarter, according to the different product grades, the contract price for standard titanium dioxide products for paint and paint production is about 2500 to 3000 euros / ton (FD, free delivery price).

Paint and other areas of the downstream buyers said that in view of raw material prices rose sharply, especially titanium dioxide prices rose sharply, and continued to rise for more than 1 year, their profit margins are declining, this is trying to transfer pressure to the downstream areas.

But these users also said that the downstream market competition is very intense.

“The profitability of the firm is quite tough and we can not digest it through sales growth, so the profitability of the firm is under extreme pressure,” a buyer said.

This relentless upstream cost pressure is causing buyers in areas such as coatings to seriously consider lowering their titanium dioxide usage or seeking other alternative possibilities if possible.

However, these buyers also acknowledged that although the use of other white filler to reduce the consumption of titanium dioxide, but with the same performance requirements of titanium dioxide alternatives is difficult to find.

Overall, the demand for the European titanium dioxide market is still healthy, there is no obvious signs of slowing consumption, for some downstream buyers to take hoard goods measures, but in some cases artificially created the illusion of demand expansion.

According to some three quarters of the goods have been booked an empty supplier said that the supply of the European market is still tight, delivery time is short 4 to 6 weeks, long 2 to 3 months, depending on the product grade. Another buyer said that every month they are trying to confirm to meet their order quantity.

There is also a trader that some participants in the downstream paint and coatings industry have been forced to cut their production due to the supply of titanium dioxide, but this view is not directly or widely confirmed in the market.

Due to tight supply in the European market, some players are seeking supply from Asia, as supply in Asia has improved, although prices have increased in recent months.

However, this view is not agreed by all, some European dealers said they think from the price point of view or based on the application of process quality differences in the consideration of the Asian titanium dioxide imports to Europe is not attractive.

According to the data show that the European second quarter titanium dioxide contract price of about 2.34 ~ 2.55 US dollars / kg.

Titanium Dioxide is a white powder pigment used in the fields of paints, coatings, plastics, paper, ink, fiber, food and cosmetics.

July 6-7, by the China Chemical (601117) and the physical power industry association sponsored the “first lithium titanate battery industry chain symposium” opened in Wuxi, Jiangsu. According to the China Securities News, the total from the Chinese Academy of Sciences, Fudan University, Tianjin University, China Academy of Electric Power and other colleges and universities and scientific research institutions of experts and scholars, as well as Yinlong new energy, micro-macro power lithium batteries such as lithium enterprises in charge of a total of 300 I attended the seminar, seminars on the lithium titanate battery industry chain, material performance, system performance and market applications and other professional areas to explore and exchange.

June 2, the Ministry of Industry issued a “new energy vehicles to promote the use of recommended models directory” (the first batch of 2017), a total of 87 brands 309 models selected, compared with the third batch of 634 and the fourth batch of 453 models The number of passenger cars 29, accounting for 9.39%, passenger cars 189, accounting for 61.17%, 91 special vehicles, accounting for 29.44%. According to the technical route points, the fifth batch of new energy car directory contains a total of 264 pure electric vehicles, 42 hybrid models and 3 fuel cell models.

In all models, 87 models using three yuan lithium battery, are passenger cars and special vehicles; 162 models using lithium iron phosphate batteries, which use the bus has 145; 35 models using lithium manganese oxide battery, which The application of the bus has 29; another 12 models using lithium titanate batteries, are bus. Can be seen that the current use of more safety and stability of the lithium iron phosphate battery, passenger cars use more energy density is relatively high three yuan lithium battery. At the same time, according to statistics, 270 models using permanent magnet synchronous motor, accounting for 87.38%, only a few models using AC induction motor.

Zheshang Securities pointed out that this batch of models in the 12 models of passenger cars using lithium titanate batteries, accounting for 6.35% of the crowded passenger car models; and the third and fourth batch of promotional catalog, respectively, 19 and 6 bus models The use of lithium titanate batteries, respectively, when the batch directory bus models of 4.19% and 2.24%, showing the application of lithium titanate batteries in the bus has increased the proportion. Compared with the current widely used lithium iron phosphate battery, three yuan lithium battery, lithium titanate battery in the cycle life and fast charge performance advantages, the application of the appropriate scene (such as fixed line bus), you can properly avoid energy Low density of the shortcomings. Lithium titanate batteries are expected in the application of new energy vehicles will gradually expand.

According to Huai Xin information reported that in recent years, Zhuhai Yinlong, Xingneng Group and other lithium titanate battery manufacturers intensive expansion of high-end demand for titanium dioxide surge, causing titanium dioxide enterprises attention. Cobalt prices for the past six months due to the new energy vehicles ternary materials and sought after speculation by the capital, and with more and more industrial capital overweight lithium titanate batteries, high-end demand for titanium dioxide began to increase rapidly, is expected to reshape the development trend of titanium dioxide industry

The National Development and Reform Commission and the Ministry of Commerce have jointly issued the Catalog of Foreign Investment Industries (Revised 2017) (hereinafter referred to as the “Catalog”). Compared with the “Foreign Investment Industry Guidance Catalog (Revised 2015)”, it has been adjusted in terms of improving the level of service, manufacturing and mining. Among them, the mining industry focused on the abolition of unconventional oil and gas, precious metals, lithium and other areas of access restrictions.

“Catalog” to further reduce the restrictive measures of foreign investment, retain 63 (including restrictions on the entry 35, prohibit the entry 28), than the 2015 version of the “Catalog” 93 restrictive measures (including the incentive to have more than the requirements of the entry 19 Article 38 of the Restricted Article, Article 36 of the Prohibited Entries) has been reduced by 30. Mining industry, the abolition of the oil shale, oil sands, shale gas and other unconventional oil and gas exploration and development, precious metals (gold, silver, platinum group) exploration, mining, lithium mining, mineral processing, molybdenum, tin ), Antimony (including antimony oxide and antimony sulfide) and other rare metals smelting and other areas of foreign capital restrictions.

Another major change in the “Catalog” amendment was the adjustment of the structure and the explicit management of foreign investment access (negative list of foreign investment access). In accordance with the requirements of the reform of the negative list model, the 2017 edition of the “Catalog” will be part of the original encouragement of the shares than the required items, as well as restrictions, prohibited class integration as a negative list of foreign investment access, as a foreign investment before the entry of national treatment Negative inventory management model of the basic basis. In addition to negative lists, in principle, no restrictive measures for foreign capital entry, foreign investment projects and enterprises to implement the record management.

“Catalog” is an important industrial policy to guide foreign investment in China. Encourage foreign investment projects can enjoy preferential policies such as duty-free of imported equipment. Preferential supply of land to the encouraged foreign investment industrial projects for intensive land use can be carried out at a rate of not less than 70% of the national minimum price for industrial land transfer in determining the land transfer reserve price. Encouraged projects in the western region can enjoy preferential policies for corporate income tax in the western development.

“Catalog” will be released after about 30 days of the transition period, July 28, 2017 from the official implementation. After the approval or filing of foreign investment projects in accordance with the 2017 edition of the “Catalog” implementation, before the approval or filing of foreign investment projects in accordance with the 2015 edition of “directory” implementation

Pesticide industry after so many years of development, has been a lot of formal, many small and medium-sized lack of innovation ability of enterprises will be gradually mergers and reorganization or face the fate of the future pesticide industry will be greatly different from the present, then the future of pesticide industry consumption hot spots where?

To promote the construction of “all the way” is the current and future period of China’s most important strategy. “Along the way” along the majority of countries and regions, agriculture is still the most important part of the national economy, large demand for pesticides. Recently, the China Petroleum and Chemical Industry Association issued a “global opportunity for China’s chemical industry,” the report for the Chinese pesticide companies through international mergers and acquisitions to achieve international decision-making reference.

The report shows that in 2016 the global agrochemical market (herbicide, fungicide, pesticide and other crop chemicals) is about $ 54 billion in total size and is expected to grow to $ 64 billion by 2020. Among them, herbicides in the 2016 market share accounted for 43%, pesticides and fungicides accounted for 28% and 26%. It is predicted that by 2020, the annual compound growth rate of pesticides and fungicides will reach 3.8% and 5.3% respectively, and the annual growth rate of herbicide compound is about 4.4%.

The long-term growth drivers of the agrochemical market include population growth, rising consumption expenditure and restrictions on available arable land until large-scale use of new agricultural growth patterns such as genetically modified seeds, automatic harvesting robots, and so on. In the short and medium term, weather and agricultural income also affect the demand for agrochemicals and drive their cyclicality.

Unlike other chemical industries, agrochemicals are not dominated by demand in Asia, and the largest demand market is Latin America. Latin America’s market capacity is expected to reach $ 18.1 billion by 2020, followed by the Asian market ($ 17.8 billion), the European market ($ 15.6 billion), the North American Free Trade Area ($ 10.4 billion) and the Middle East and Africa $ 2.6 billion). In terms of growth rates, Latin America is expected to lead at an average annual growth rate of 6.5 per cent in 2016-2020, followed by the Asian region (5 per cent), the Middle East and Africa (4.5 per cent), the European region (3.4 per cent) And the North American Free Trade Area (2.0%).

The agrochemical industry has higher profit margins but is cyclical. The high profit margins of the original drug producers are mainly due to the entry threshold, namely, innovation and R & D and related costs (for the development of new, less toxic and efficient products), patent retention and regulatory review. The market is led by large agricultural companies such as Syngenta, Bayer, BASF, DuPont, Monsanto and Dow. Is now experiencing a global wave of integration, announced the transaction, including China Chemical and Syngenta, Bayer and Monsanto, Dow DuPont merger and follow-up agricultural spin-off. For the original drug and generics manufacturers, strong product development, registration and marketing capabilities are the key to maintaining profit margins. The cost of raw materials is not the main profit factor of the original drug manufacturer, but it is a key value driver for generics manufacturers.

Due to the high growth rate in the agrochemical sector (expected annual compound growth rate of 4.5%), especially in Latin America, Asia and North America, with high growth rates and huge consumer markets, the higher entry threshold makes M & The preferred investment in the process of globalization. Traditionally, countries that are attractive to global investors include the United States, Canada, Brazil, Mexico, India and Poland.