as of February 15th, according to the SWS secondary classification, there are 18 chemical fiber listed companies released 2016 results notice, the industry overall recovery significantly.

Sub industry, polyester industry chain performance significantly improved, net profit of the company, Rongsheng Petrochemical Hengyi petrochemical Tongkun shares and other basic to achieve double growth; viscose industry continued good market last year, net profit of Jilin chemical fiber, such as Australian technology company achieved an increased significantly; in contrast, spandex market is still sluggish, Huafeng spandex Taihe new material, Woori holding company poor performance.

To improve the relationship between supply and demand

The polyester industry chain, many companies said, from the supply side and the capacity to promote the reform, improve the industry supply and demand. In addition, this year, the international oil prices, which provides support for the main product price. In addition, the fourth quarter of 2016, the RMB against the dollar, while some companies get positive export exchange earnings. Affected by this, the relevant performance of the company increased significantly.

Emori Petrochemical expected 2016 net profit of 1 billion 700 million yuan, -18.5 billion yuan, an increase of 382.79%-425.39%. The company said that the sector continues to release aromatic benefits; PTA segment gross margin has improved; the chemical fiber plate market is relatively stable, the profit has improved significantly over the same period.

Hengyi petrochemical and Tongkun shares expected 2016 net profit of 760 million yuan -8.5 million and 1 billion 100 million yuan -11.6 billion yuan, an increase of 311.69%-360.44% and 855%-907% respectively. The company said the industry after years of stagnant period, continue to promote the reform of the supply side, clearing capacity gradually, the release of new capacity growth dropped significantly. At the same time, the downstream demand continued to maintain a healthy growth, industry ushered in a tight balance to pick up long cycle, the pattern of supply and demand gradually improved. Especially since the fourth quarter of last year, affected by the downstream demand and price stabilization and recovery, significantly enhance the profitability of the company products. The international crude oil prices began to rise from the low, and remain relatively high in the second half of the year, which cost support for polyester filament and thickening of the stock price, return.

Viscose industry are more optimistic, after years of brutal price war, the industry since 2014 almost no significant new capacity, profitability since the beginning of 2015 bottoming. Jilin chemical fiber is expected in 2016 net profit of 28 million yuan -3500 million, an increase of 94.69%-143.37%. Australian technology is expected to achieve annual net profit of about 230 million yuan -29000 yuan, growth of 69.29%-113.45%. The main products prices continue to rise, the main reason is the performance of the company growth.

However, the Nanjing chemical fiber viscose industry belong to the performance of some “accident”. The company expects 2016 full year net profit of 90 million yuan, down 80%. The main reason for the sharp drop in performance, the company said that the year 2015 will be held by Nanjing Jinling Real Estate Development Co., Ltd. 70% stake in the transfer of publicly listed, one-time investment income 498 million 317 thousand yuan, while the 2016 year without the income. The company pointed out that since June 2016, the price of viscose staple fiber appeared a rapid rise in prices, the main business profit of viscose fiber was obviously improved. This year’s profits mainly from the main business of viscose fiber.

Spandex industry bottomed out

The overall performance of spandex industry is poor, the average selling price year-on-year decline, resulting in decreased performance of the company, or even part of a substantial provision of the company.

Uhl expects first loss, an estimated loss of 350 million yuan -4.3 million yuan, than the same period last year 1433.09%-1737.80%. The main reason for the sharp drop in performance, the company said, spandex industry bleak, 349 million yuan provision for impairment of assets. In addition, the industry slump in demand part of the company’s production capacity.

The same industry leading Huafeng spandex expects first loss, the loss rate is 300 million yuan -3.5 yuan. Similar with the Uhl company provision for impairment of assets 445 million yuan. Another company Taihe new material is expected annual net profit of 50 million yuan -6000 million yuan, down 36.97%-47.47%.

However, the provision for impairment of assets is a kind of adjustable accounting methods, some companies are prepared by one-time impairment of a huge amount of assets, in order to put their young.

The Spring Festival in 2017 after the first week, the PTMEG upstream raw material prices rising pressure, spandex manufacturers have to offer up 1000-2000 yuan / ton, or about 3%-5%.

Factory in Hefei at present, have to device production, the manufacturer of the whole device starts into about 5. The market demand gradually started, the market order enthusiasm slowly improved, operation support strong market to a certain extent.

In February 13th Lianyungang Rui agricultural potassium chloride crystal Russia 62% price 2120 yuan / ton, the price at 2060 yuan / ton 60%. Banle of agricultural potassium chloride potassium 60% white offer in 2080-2100 yuan / ton, pink price at 1980 yuan / ton. Tangshan Huixin guardian 60% potassium chloride price at 1850 yuan / ton. Qinghai Guotai Saline Lake 50% potassium chloride particles factory price 1550 yuan / ton, 57% potassium chloride powder price 1400 yuan / ton.

At present, the major port dealer sales release, the venue can sell sufficient supply. Is expected in the short term price of potassium chloride will be relaxed.

Analyst Xu Lijuan told reporters, in addition to pesticide source medicine, pesticide raw material prices are also affected by the environmental supervision. Because of environmental pressure is relatively large, some of the more demanding standards of pesticide production of raw materials is blocked, some companies can not start, the overall supply is much less, so prices are rising.

Xu Lijuan: “from a cost perspective, the raw materials of imidacloprid, acrylonitrile, like rice oxazolidine and their prices, over the years, the price can be said to be a rose, rice oxazolidine rose 4 thousand yuan”.

The pesticide in the raw materials prices rose significantly, and glyphosate. From the opening of environmental inspectors, glyphosate originally overcapacity, price and demand are extremely low, begin to reverse, prices continue to rise, if environmental inspectors continue, its price may exceed 30 thousand yuan per ton.

Analysts predict that this year prices will continue to rise in pesticide

Analyst Xu Lijuan said that due to the quantity of supply, some traders believe that pesticide prices have room to rise, then the opponent in stock conscious speculation.

Xu Lijuan: “because the operating rate is low, and the raw material is expected to rise, some manufacturers have preganglionic imidacloprid devices because environmental protection has stopped, at present has not fully recovered, shipments or not. Leading trader hand goods, will continue to rise to speculation”.

Analysts said, this year, the national environmental protection supervision work is still not relaxed, in this case, pesticide prices this year continue to rise is not escape the fate.

Xu Lijuan: “at the beginning of the March Shanghai exposition, and foreign vendors to participate in the exhibition more, at the meeting they will discuss about some orders, or trend of the market, at present, to the end of February, the market still maintain a strong trend”.

Composite polyurethane adhesive industry is a technology intensive industry, product formulation and development ability of enterprises to maintain high profit margins, with the rapid development of fine chemical industry in the world, changing customer demands, and presents the trend of personalized, potentially improving the upstream product development difficulty, enterprises must always pay attention to product formula improvement, improve the performance of, and broaden the application fields, continue to meet the changing demands of the market and consolidate market share.

The localization of multinational corporations competition

With the rapid development of polyurethane adhesive industry, some domestic enterprises have begun to gradually grasp the independent intellectual property rights in some areas has gradually well competitive advantages; however, some multinational companies realize that Chinese market has strong development momentum, is the focus of competition in the implementation of the global strategy. In recent years, multinational companies to increase investment Chinese, making production and research to accelerate the process of localization and reduce its cost.

Ten, industry chain

The downstream industry chain industry

Upstream industry

The upper composite polyurethane adhesive industry as the basic petrochemical raw materials industry, the main raw material is two ethanol, adipic acid, isophthalic acid, two.

At present, the 95% industry raw materials has made domestically, mainly by Sinopec, PetroChina, dance (China) and Yantai Wanhua ear; overall, composite polyurethane adhesive raw materials in the overall balance of supply and demand situation.

Downstream industries

Due to the wide application and downstream industries composite polyurethane adhesive and printing: packing, leather, textiles, footwear, of household appliances, electronic products, furniture, building materials, transportation, energy, security, tobacco etc..

Eleven, industry related laws and policies

The “catalogue for the guidance of industrial structure adjustment (2005)”, “People’s Republic of China economic and social development of the Eleventh Five Year Plan”, the “national long-term science and technology development plan (2006.2020 years)”, “Industrial Catalog for foreign investment (2007)”, “high-tech enterprise management approach” (April 28, 2008), “national key high tech fields” (National Science at No. [2008]172) and other policy documents put forward the positive development of economy at the same time as the new chemical industry, will focus on the development of the adhesive material, and its inclusion in the State encourages the development of the industry.

China petroleum and Chemical Industry Association released the “China petroleum and chemical industry” 11th Five-Year “development plan” clearly pointed out that for the adhesive industry, focus on the development of environmentally friendly and high performance adhesives, such as polyurethane adhesive, silicone adhesive, Low Formaldehyde UF glue, epoxy adhesive, etc..

According to the Reuters of Seoul on January 19th news, South Korea Lotte chemical company is seeking to buy troubled Petrochemical Industries Co Singapore Jurong Island aromatics company (JAC), because the Korea Companies continue to seek business expansion.

JAC went into receivership in September 2015, was facing a dilemma of global commodity prices collapse, the company has been trying to solve the debt problem.

Lotte chemical Thursday in a document submitted to the Korea Stock Exchange said the company has submitted a letter of intent on the possible acquisition of JAC earlier this month, and has been nominated for a short list of acquisitions in January 10th.

Condensate oil separation device JAC production facilities include a set of 100 thousand barrels / day and some petrochemical plant, the main production of textile raw materials and plastic bottles of p-xylene.

A Singapore trader said, the deal will also increase the potential Lotte Chemical Petrochemical naphtha supply, while the consolidation of Lotte chemical condensate as one of Asia’s largest buyers position.

In Lishui and South Korea Lotte chemical currently operates two naphtha Mountain Center, total ethylene production capacity reached 2 million 100 thousand tons / year.

Condensate Lotte chemical and modern oil companies also have a common set of 130 thousand barrels / day separation device, the device has begun vote last year.