The report pointed out that in the forefront of technology of traction and the domestic and international market demand pull, bio industry development contains significant development prospects and investment opportunities, resource utilization, microbial biomass mining solutions, new tools and technology platform for the development of new, efficient diastases, application of biological chemicals module construction, high value-added chemicals biosynthesis become the next hot spot for investment.

Report analysis, bio based materials and chemicals (excluding biomedical products) replacement rate gradually increased, the expected 2020 sales revenue in all materials and chemicals market sales revenue ratio will reach 10% – 12%; fine chemicals (including fermentation products) output is expected to significantly increase, to more than 1 trillion yuan in 2020 (bio based materials; monomer containing) capacity steadily, to reach 11 million in 2020 to 13 million tons, an average annual growth rate of 12% – 15%; the application of green biological agents in papermaking, textile, metallurgical and environmental governance and other aspects of the penetration rate of sustained growth, in 2020 to reach more than 30%.

China Academy of sciences relevant responsible person said, “Chinese Bio Industry Investment Analysis Report” will be issued once a year, continued to carry out the analysis of international and domestic biological industry development trend, and strive to become the field of China Bio industrial value investment guide.

Ethylene glycol futures market can help enterprises to deal with price volatility, that since 2010 the glycol futures listed on the appeal.

The current situation of the development of China’s ethylene glycol market:

At present, the domestic ethylene production capacity of 8 million 800 thousand tons / year, the main production process with ethylene and coal preparation, accounted for the production of ethylene glycol 60% and 40%. benefit from international oil price decline, is the main force of domestic ethylene glycol production, and production enterprises are mainly Sinopec and PetroChina’s subsidiaries. Among them, Sinopec accounted for total domestic production capacity of 38%. in recent years, with the development of the lower coal prices and coal glycol technology, coal glycol production capacity is also rapidly running. According to statistics, ctmeg projects put into production in 2015 amounted to 1 million tons / year, the project is also a lot of follow-up.

The domestic spot market supply and demand situation of ethylene glycol:

China is the world’s largest producer of polyester, is also the largest consumption country of ethylene glycol, ethylene glycol demand accounted for about 40% of total demand, and the external dependence is as high as 70%.2015 years, China’s ethylene glycol production of about 3 million 916 thousand tons, imports about 8 million 772 thousand tons, apparent consumption of about 12 million 667 thousand tons.

According to the price range of computing in 2015, the stock market funds amounted to 100 billion yuan. Data show that from 2010 to 2015, the average price fluctuations of ethylene glycol ethylene glycol was 50%, in 2015 the highest price of 8060 yuan / ton, the lowest price is 4155 yuan / ton, up to 49%. amplitude over the same period, PTA price volatility only 24%. severe price volatility exacerbated polyester enterprises procurement risk.

news in October 16th, the Commission has approved the ethylene glycol futures project application, this means that the ethylene glycol futures from official listing is a step closer.

For the convenience of investors to understand the variety, our basic situation of ethylene glycol industry do a simple comb.

Ethylene glycol is used to do what?

As an important and basic organic material, ethylene glycol is mainly used for the production of polyester fiber, unsaturated polyester resin, antifreeze, lubricants, plasticizers and explosives. In addition, can also be used in coating, photographic developer, brake fluid, ink and other industries. From a global perspective, more than 90% of ethylene glycol and PTA were used together with the synthesis of polyester products in China, more than 74% of the ethylene glycol was used in the production of polyester and polyester fiber.

New production capacity increased mid supply pressure
The first three quarters of 2016, domestic Fujian sinoview Montana coal and a total of 650 thousand tons of PP production capacity, from the four quarter production plan, Xinjiang Shenhua in October has been put into operation, Qinghai Saline Lake, Ningbo Fuji, co-founder of Transit plan 11 moonrise PP products in Huating, Changzhou, Xi Fude long Thai energy capacity production probability is postponed to 2017 big. So at the end of 2016, the domestic PP production capacity increased by 1 million 800 thousand tons to 19 million 600 thousand tons, production capacity growth rate of 10.12%. Taking into account the new production capacity and the pre maintenance device brought to restart the supply increases, estimates for the four quarter PP total output of 4 million 780 thousand tons.
From the import situation, from 1 to September, total imports of PP 3 million 238 thousand tons, down 12.3%. From 8 to September, the domestic spot market focus has been significantly improved, and significantly narrow the price upside down. PP is expected in the fourth quarter of total imports will reach 1 million 100 thousand tons of high level. This fourth quarter domestic PP total supply will reach 5 million 880 thousand tons in the three quarter, an increase of nearly 11%.
Low stage Petrochemical stocks is conducive to very price
The National Day PP futures market rose upward, traders and downstream production enterprises gradually rose with the buying of goods, so although the PP factory operating rate has been significantly improved than before, but as of October 18th, petrochemical factory inventories remained at 590 thousand tons of low level, taking into account the current downstream of PP production in the traditional peak season demand, orders and profit level. This is conducive to the late petrochemical price pull up operation.

Overall, the national day of the PP rose futures gapped opened the third wave of rising off the PP futures, in the downstream part of restocking will lead to prices rising stage, but considering the current social inventory level and late supply growth potential, this round of rebound to more than two times before the rise. With the November release of new capacity and maintenance device brought to restart the supply side to accelerate the recovery, the whole society inventory will be significantly increased, then the price will be PP finished lower trend.