At the critical moment of Suqian Chemical Industry Park ecological structure adjustment and transformation and upgrading, based on the characteristics, agglomeration, green, efficient “concept of development, since 2016, Suqian eco chemical industrial park with a punch, to create” surface treatment center “and” textile center “, accelerate industrial agglomeration, enhance the level of development.

Find out the market demand, improve the planning. Timely convening of the park surface treatment and textile printing and dyeing enterprises forum, the total demand for each enterprise, the total processing capacity, external processing capacity and process requirements for a comprehensive investigation, summary. Invite the textile industry design institute, the Provincial Association of surface treatment expert, a careful analysis of the city’s seven district three county survey data, combined with the advanced experience of the park location, the direction of development, improve the planning center. In accordance with the high starting point planning, high standards of construction ideas, building focus, leading technology, advanced equipment, first-class quality, total industrial concentration of moderate industrial areas.

A few years, graphene industry application finally ushered in the dawn. China graphene Industry Alliance (hereinafter referred to as the League) recently held an annual meeting, to four companies awarded the annual graphene industry outstanding contribution award 2016. This is the first time the League awarded the award. Alliance Secretary General Li Yichun said graphene industrialization is in a critical period, the establishment of the award is to encourage industry companies in the field of exploration, the first breakthrough.

It is understood that one of the conditions of the award selection is the first to develop new application products, and has accumulated sales of more than 20 million yuan.
The four obtained graphene Industry Award for outstanding contribution to the enterprise are: Changzhou sixth elements of new materials Limited by Share Ltd (hereinafter referred to as the “sixth elements”), Hong Na Dongguan new Mstar Technology Ltd (hereinafter referred to as “hung new material”), Polytron Technologies Inc (hereinafter referred to as “Ji’nan Quan Quan technology”) and Shenzhen Wang ene new materials Polytron Technologies Inc (hereinafter referred to as the “ene Wang new material).

The new material graphene conductive additives hung pioneered, mainly used in cathode materials of lithium battery. Although the material to improve the lithium battery capacity density, charging and discharging rates did not bring revolutionary changes, but the decline in product costs, cost-effective role is obvious. Because of this, after the introduction of new products, gradually by BYD, Tianjin force God and Xuan Xuan hi tech lithium battery industry leading enterprises to accept and mass procurement. This also means that the application of graphene officially entered the commercial era in lithium battery. According to reports, the new material hung annual sales revenue reached billion yuan scale.

Sixth elements to break the monopoly of foreign countries, developed the country’s first heavy graphite anti-corrosion coating, and the first to achieve industrial applications. It is reported that graphene coatings are mainly used in wind turbine blades, to resist corrosion and individuals by measuring, the service life can be increased by 10 to 20 times. The product of this year sales of 30 million yuan, the company is now the production capacity from fifty thousand tons to expand tons.
Wang Quan technology and new material graphene products are mainly used in fields such as textile and clothing, including underwear Shengquan technology graphene with annual sales of 50 million yuan to 60 million yuan. Graphene new material production graphene heating film, and joint downstream more than and 10 companies jointly develop new products, this year is expected to achieve joint sales of industrial chain enterprises $500 million.
After the four companies graphene breakthrough, ushered in many industry imitators. According to reports, now there are more than a dozen manufacturers of graphene conductive additives, coatings companies.

According to reports, because a large number of enterprises to join graphene industrialization, graphene output this year is expected to reach 3 billion yuan, far more than last year’s $600 million. Li Yichun said, there are many companies are trying to industrialization, next year is estimated to have five or six new areas of industrial applications will break. By 2018, graphene output is expected to reach 10 billion yuan, the industry will usher in the outbreak of the application of the year.

The weak trend and octanol market operation in Jiangsu, today to discuss the market atmosphere dull DOP market slightly stable, factory inquiry, cargo ship generally cautious, local traders,

the current local market price is 7850 yuan / ton, the actual negotiations in 7800-7950 yuan / ton. Actual turnover in early trading today is still less.

Key points: urea industry will be in the 17 year of spring season showing demand trend, the gap between supply and demand is expected to more than 2 million tons, the superposition light storage delay background, supply and demand gap will continue to expand; due to continuous demand between new, we believe that the market cycle duration is expected to exceed the expected until mid 17.

Long period, coal water slurry technology of urea has strong competitiveness in the world, is expected to fall in the price of coal, natural gas prices continued upward and North American interaction devaluation expectations, we estimate that the manufacturing cost of the future coal urea process in China advanced, and has a high chance of full cost less than in North America gas from urea.
Spreads narrowed, the operating rate will remain sluggish: urea prices 16 years dropped to less than 1200 yuan / ton low, accompanied by raw materials prices, gas prices and rising freight costs, reduce price to the limit, and even the use of advanced technology of the manufacturers is difficult to profit. Although from the beginning of September, the price of urea rebound bottom, but instead of operating rates continue to decline, currently only about 50%. On the one hand, because most manufacturers are still not profitable, manufacturers production will is not strong; on the other hand, middlemen worried about coal downside risk caused by urea prices, light storage stocking will lower, we believe that the downturn will maintain the operating rate.

In the spring of peak demand, middlemen inventory low: about 60% spring season urea demand will reach annual agricultural urea demand (25 million tons), from the beginning of winter wheat turning green fertilizer, continuous demand for new convergence. For the whole year, agricultural urea demand and exports is expected to be slightly under pressure, but in the export tariffs or will be canceled, and promote the rapid growth of demand for urea for industrial use, we believe that the 17 year urea demand will remain stable. Inventory, through grassroots research, at present only half of the middleman inventory in less than 15 years over the same period, the social stock is more intense, and in the high coal price situation, the current stock brokers will still not strong.

The gap between supply and demand will continue to expand, the business cycle is expected to continue until mid 17: after calculation, we believe that in the case of considering inventory, even to return to work capacity (about 75 million tons) from 17 at the beginning of next year’s spring season all production, is still a large probability will form a gap between supply and demand, when urea price rises will exceed the market expected, is expected to exceed 2000 yuan / ton (in the current coal price calculation). We believe that the main reason for this phenomenon lies in the light storage delay performance for November and December is expected to yield fell sharply year-on-year, to stabilize the spring season demand plays a stocking missing, in the subsequent continuous demand convergence under the background of urea cycle is expected to continue until the middle of 17. We judge the current price of coal for 17 years, the price of urea in 1700-1750 yuan central near the actual price will fluctuate based on central.

Investment advice: we believe that the 17 year spring season urea industry supply and demand gap is relatively clear, optimistic about the magnitude and duration of urea prices surpassed market expectations, and priority stocks more flexible, the proposals concern urea industry related targets, elastic order: Yang coal chemical (600691), Hubei (000422), Yihua Hualu-Hengsheng (600426), Luxi Chemical (000830), and proposes a focus on Hong Kong stocks subject Chinese fertiliser (01866).
Risk warning: risk of downstream demand is less than expected; the risk of price fluctuation of agricultural products; the risk of coal and natural gas price volatility