Guangxi Hechi SASAC Hechi chemical industry initiative broke 11 years ago when the main drawer agreement, with the central enterprises of China chemical industry group public interest dispute.

Yesterday, the Hechi chemical industry revealed a by the Hechi municipal SASAC issued the “on the disclosure of Hechi chemical industry dispute letter”, the disclosure of 2005 China chemical industry group (hereinafter referred to as “Chinese chemical”) through the free transfer of Hechi chemical industry holding gains when the two sides had agreed on the transfer of stock rights. In addition, according to the China chemical aspects of verbal notice in January 2017 will be held by the Hechi chemical matters on the transfer of 37 million 493 thousand and 589 shares, the Hechi SASAC has also raised objections.

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According to the letter said, in May 25, 2005, the Hechi municipal government, Chinese common forensic chemical, Hechi SASAC and China Agricultural Chemical Industry Corporation (referred to as the “conversion”) signed the “Guangxi Hechi chemical industry group company asset reorganization agreement”, “Guangxi Hechi chemical industry group company asset restructuring supplementary agreement”. The agreement will be transferred to the whole river group in agriculture, at the same time agreed within four years after conversion in the restructuring of river group investment shall be not less than 550 million yuan. The river group property right after the transfer, the internal Chinese chemical and has undergone several transfer, in 2015 transferred Zhi Hao Hua chemical corporation.

According to the reporter’s inquiry, Hechi chemical industry in May 31, 2005 for the asset reorganization announcement. The disclosure of the equity change report shows that free equity transfer is completed, in Hechi chemical conversion holds 177 million 220 thousand and 890 shares of state-owned shares indirectly through the river group, accounting for 60.26% of total share capital. Notice that the transfer is to optimize the allocation of state-owned stock of resources, deepen the reform of state-owned assets management system, accelerate the pace of industrial restructuring, bigger and stronger China chemical, improve the operation of state owned assets to achieve win-win benefits, Hechi municipal government and the river group, China chemical.

However, China chemical at the helm of more than ten years later chose to sell the shell. In July 12, 2016, Haohua Chemical Corporation under the auspices of the river, Hechi chemical industry group will hold 87 million shares transfer agreement to Ningbo Silver billion Holdings at a price of 840 million yuan. After the completion of the transaction, Silver billion Holdings became the controlling shareholder with a 29.59% stake, the river group also holds 37 million 493 thousand and 589 shares of Hechi chemical industry.

In January 11th, British media reported that the China National Chemical Corp and the Swiss pesticide and seed group Syngenta to EU antitrust regulators proposed small concessions, in order to solve on its $43 billion acquisition of doubts.

Reported on January 11th, a close to the deal, sources said, China chemical does not have to sell its Adama Agricultural Solutions Ltd (Adama). The focus of discussion is to remedy the individual products, some products may have the Adama.

APC rejected the requests, and said in its statement this week, it will be “more than the previous labor agreement is illegal and unrealistic, because it will cost more than about 20 million of the.” According to the APC2015 annual report, the company’s 2015 net profit of about 131 million, but the statement said, because of the external factors, the company’s profits decline, fell to the lowest level of potash sales prices over the past ten years.

APC said in a statement, the average monthly salary of the company for about 1900 of the workers, and enjoy other benefits. The statement also pointed out that the two labour agreement signed in the past four years, the APC employee wages have increased about 7 million in total. APC said the company in the work environment and the incentive for employees in the first row of jordan.

According to “the times” reported that the Arabia Potash Corp (APC) of the miners’ strike threat, is the cause of the dispute between workers and industrial company. The employer appealed to the government appointed mediators.

According to Petra, the news agency said the mining workers between trade unions and the APC meeting has been scheduled for Sunday (January 8th) held in the Department of labor, in order to discuss the requirements of workers, but the unions failed to attend the day. The union representative APC in the Safi and Aqaba factory workers demanding higher wages for workers, increase benefits and privileges. If these requirements are not met, they plan to strike in January 17th.

since October 2016, the domestic price of acrylic acid from 7000 yuan / ton rose to 12000 yuan / ton, or 71%, is not difficult to find, acrylic products or larger, domestic enterprises have good acrylic products, acrylic acid in 2016 occurred in the market of major accidents (BASF explosion led to its parking capacity 320 thousand tons of acrylic acid Jiangsu Sanmu Logistics Co. Ltd. in unloading propane pipeline leak found, then the fire, resulting in 160 thousand tons of acrylic acid and butyl Jiangsu Sunwood device), double parking accident superimposed power, leading to global acrylic supply, also led to domestic enterprises to open a giant part of price surge model, which also contributed to the domestic part of the company’s fourth quarter 2016 the performance.

It is reported that in January 12th, Zhejiang satellite Petrochemical performance forecast released announcement, expected 2016 net profit of 2.5-3.5 billion yuan, according to this calculation, the company performance in the fourth quarter range of 1.5-2.5 billion yuan, the company’s 4 quarter increase performance improvement, even if the November 2016 Zhejiang satellite Petrochemical Acrylic device does not affect the performance of the company parking half, but increased. That satellite petrochemical production and operation stability, the growth momentum continued into 2017.

In addition, as another Wanhua chemical acrylic leader, since last year, petrochemical plant to resume production after the acrylic prices hit a new high this year, the industry chain profitability continued to improve. The operating rate of domestic acrylic acid industry and inventory is low, when the price of acrylic acid Wanhua chemical raised to 7100 yuan / ton, since 2017, the domestic market continued upward acrylic, is now increasingly stable, does not exclude the interference of upstream factors, by the end of the 12 day acrylic ex factory price of 10900 yuan / ton, this week (from January 5th to 12 because of the role of lead), propylene acrylate prices fell slightly.

The market decline in the expansion of propylene

From January 5th to 12, propylene market decline, the decline in the expansion. Downstream polypropylene prices continued to decline, leading to propylene demand initiative in general. Propylene refinery inventory pressure continues to rise, gradually reduced the price of propylene. But with propylene propylene refinery prices continued to decline, very price will increase; crude oil and major downstream prices have gradually stabilized, the market mentality is good support, propylene prices have gradually stabilized. As of January 12th, Shandong propylene mainstream price 7550-7600 yuan / ton, down 3.5%. the Spring Festival approaching, propylene market is expected to steady trend, the market is difficult to have a significant change before the Spring Festival, is expected to pressure or propylene refinery stocks decline.

Fierce competition

China’s current real effective acid production capacity of about 2 million 200 thousand tons, the actual demand of 1 million 800 thousand tons, the actual effective capacity utilization rate reached 82%. of China’s Acrylic has experienced more than 2 years in the doldrums, many small and medium-sized parking capacity, once the long-term parking, enterprises will withdraw from the market of acrylic acid, to further improve the industry concentration, in the downstream consumption growth keep the 6-7% case, we expect the industry in 2017 will further improve the structure of supply and demand. Only Shanghai Huayi acrylic acid plant will be put into operation in half a month after the beginning of January, according to market sources, Shanghai Huayi acrylic acid and butyl device to enter the commissioning phase, but the recent rumors, Huayi encountered problems in the feeding process, most market participants believe that Huayi year after the restart of the greater probability of material. The author thinks that the HC chemical network, Shanghai Huayi acrylic acid and butyl device is put into operation after the 2017 China’s capacity will be improved and butyl acrylate.

SAP super absorbent resin acrylic acid as a high-end downstream products, used in baby diapers, personal hygiene, food packaging materials, water retaining agent, water blocking cable and other fields, is the main application field of personal hygiene, accounting for more than 92%., with the second child policy brought about by the aging of the baby boomers and adult diapers the demand for high-end downstream products demand will increase year by year, driving the market to become the domestic and foreign enterprises upstream acrylic “xiangbobo”, the future of these companies has a huge incremental space, is expected to give each big company future performance and provide great flexibility.

In summary, the Spring Festival holiday, due to upstream propylene market access to the disadvantaged situation, the domestic acrylic market seems to be flat, is expected next week to narrow the greater probability weak acid.