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.

With global supply tightening, demand for titanium dioxide may continue to rise. Asia is seen as a major growth factor, especially in countries where living standards are increasing, and demand for coatings and packaging products has increased. However, the rise in prices of titanium dioxide (TiO2) in China is weakening the competitiveness, which provides an opportunity for exporters to invest in the Asian market.

China’s titanium dioxide (TiO2) market rebounded strongly in 2016, China’s titanium dioxide market prices in 2015 at a low price, and in 2016 to achieve a huge price increase, enhance China’s titanium dioxide manufacturing enterprises financial performance. 2016 foreign market demand for titanium dioxide (TiO2) increased by 17%, but also to promote the Chinese manufacturers to increase exports.

Global demand for titanium dioxide market, other parts of Asia such as India, South Asia and the United States, Brazil and Mexico.

As the market demand for Tio2 weak next week led manufacturers to slow down the production rate, because the profit margins are low, 2016 global titanium dioxide supply tightening.

China as the most important supplier of titanium dioxide in Asia, as the Chinese government in 2016 to increase environmental supervision efforts to force manufacturers to limit and cut production to ensure that environmental protection, resulting in tight supply of domestic titanium dioxide. In addition, China’s titanium dioxide prices not only because of tight supply, higher raw material costs and increased transport costs also led to rising production costs.

According to market experts, global consumption of titanium dioxide will likely continue to grow until the end of this century, the growth of the Asian market will play a greater role.

The most important role expected in future growth will be large-scale manufacturers, who will be able to enjoy lower production costs as they are able to procure businesses in the upstream market. For example: the purchase of titanium concentrate in Panzhihua City Rui Erxin trade processing, which will ease the supply of titanium dioxide in China’s titanium and other raw materials supply tight supply.

Titanium dioxide industry believes that until 2018 early or mid-term price of titanium dioxide will continue to rise, due to the supply and demand of titanium dioxide to reach a level, to maintain a higher level, with the continuous improvement of living standards in Asian countries, like China’s paint and packaging The demand to promote the demand for titanium dioxide. As a result, Asia will become the most important market in the near future.

Due to the pre-order in the early season, the demand for titanium dioxide in the first quarter of 2017 remained stable. In addition, there are indications that the second quarter of the downstream industry such as paint, paint and plastic seasonal growth, which means that the supply situation is more stressful tension.

Chinese and Asian manufacturers are not the only participants in raising the price of titanium dioxide. In 2017 many large enterprises have announced price increases, and may continue to 2018 years. International large-scale titanium dioxide companies Huntsman, Koster and Como on March 1 have raised their prices. Some of China’s titanium dioxide producers, prices at the end of February have also been pulled up.

Domestic refined oil retail market recently renewed waves.

Reporters learned from the industry, by the petrochemical, PetroChina two main units led by a round of price cuts are more gas stations staged, private, social stations forced to follow up, which triggered a fierce market share battle.

In the industry view, this is the domestic refined oil supply, demand downturn, retail high profits and even share the popularity of multiple factors such as cycling. In addition, it does not rule out the sale of Sinopec in the overseas IPO before the outbreak of sales.

More gas and diesel prices war started

“From the beginning of May, Sinopec and PetroChina gas station gasoline and diesel retail price war quietly started, preferential rates unprecedented, most in the 1 yuan per liter to 1.5 yuan, of which, Shandong, Henan, Zhejiang, Guangdong and other regions of the price war Bigger. “Industry agencies Jinlian a product analyst Wang Yanting yesterday on the card reporter said.

Reporters learned from Sinopec, the group’s Jiangsu oil branch recently jointly Jiangsu Agricultural Machinery Bureau, launched the “farming farming farmers” a number of initiatives for hundreds of thousands of agricultural machinery to provide a range of about 10% price concessions.

In addition, the Texas Agricultural Machinery Bureau and Sinopec and Texas Petrochemical Company recently jointly studied and developed a “three summer” agricultural machinery for the benefit of agricultural policy: June 1 to June 15 period, the city’s 84 gas stations 0 Diesel premium per liter limit of 1 yuan.

Sinopec Anhui Chizhou Oil Company in the urban area of ​​several large gas stations to implement the “peak peak refueling concessions” activities, the discount rate of about 0.3 yuan per liter. Statistics show that the implementation of the peak peak refueling, the average daily sales of 95 gasoline increased by about 20%, the highest growth of 39.8%.

It is understood that Shandong Zibo part of the recent petrochemical petrol station has been the preferential efforts to reach 1.2 yuan / liter, in some of the more intense competition even more 2.3 yuan / liter discount rate. The PetroChina gas station is also “not far behind”, have hit price ads to attract customers.

For example, PetroChina Zhumadian branch of the gas station launched No. 0 diesel prices straight down concessions; Fujian PetroChina-owned gas stations are launched micro-credit to pay the random reduction and other preferential measures.

It is noteworthy that this is Sinochem for many years to take the initiative to join the sales price of refined oil war, and the preferential range, for a long time. In the past, as the domestic refined oil retail boss Sinopec by virtue of the gas station network, oil quality and other advantages, rarely involved in the private fuel station led by the price war.

Multiple factors agitated oil retail market

“This is the result of increasing domestic refinery production capacity.” Wang Yanting told reporters that as of now the domestic refinery production capacity has exceeded 800 million tons, refined oil supply rose sharply, but by the downturn in the market constraints, the overall performance of downstream demand is not optimistic. The imbalance between supply and demand makes the retail market feel pressure.

She said that in 2017, the main unit retail market sales were significantly landslide, increase sales efforts is to increase sales, to seize market share one of the effective ways.

With the high temperature weather struck, outdoor operations are affected, and this year’s fishing moratorium and more than a month in advance, which have inhibited the demand for diesel. On the other hand, the popularity of shared bicycles also has a negative impact on gasoline consumption.

At the same time, the current retail links are in the golden period of high profits, making oil prices larger space. According to Jin Lianchuang monitoring, in May the domestic 92 gasoline theoretical retail profits roughly 1906 yuan / ton, diesel theory, the retail profit of roughly 1456 yuan / ton, the petrol station considerable profits. Despite the increasing efforts to increase, but still profitable.

Another broker is not willing to name the broker told reporters that the background of the price war is the first domestic gasoline demand for the cumulative year-on-year growth rate for the first time negative, significantly different from the past few years apparent demand growth of about 10% The normal state. Gas demand growth is expected in the next few years will be the next step, so that the pressure of domestic oil excess oil growing. Second, to refining the right to use crude oil last year after the release of raw materials from the shackles, a substantial increase in operating rate, which also makes the market flow of refined oil increased, the impact of the market. In addition, the spread of domestic and foreign Guangdong Fujian coastal oil smuggling has become one of the factors affecting the balance of supply and demand of refined oil.

In his view, with the private refineries in the next few years of large-scale production, domestic oil surplus will be more serious.

“As far as we know, Sinopec’s price war has successfully squeezed the share of some social gas stations, resulting in the latter last month sales fell by nearly 40% .Through this round of price war, Sinopec to let everyone see its gas station in the brand service , The absolute advantage of the regional position, but also people see the ‘two barrels of oil’ is not a big bad boat, not not able to participate in market competition, proved its sales strategy can be more flexible. “The researcher said.

He also said that the price does not rule out and Sinopec sales company in the overseas IPO overnight sales related.