Industry: domestic sulphuric acid market this week is relatively stable. The main area of Anhui smelter acid to price in the 180-280 yuan / ton, sulfuric acid mainstream negotiate prices in 320-400 yuan / ton, stable market demand in the region, take the goods manufacturers overall stable; Hebei, Shandong area of sulfuric acid market steady light, device manufacturers will resume production, smelting acid mainstream discussion prices in the region in the 220-280 yuan / tons of sulfuric acid, quoted in the mainstream 300-360 yuan / ton, sulfuric acid downstream demand, manufacturers go smoothly. Northwest sulfate market continued weak consolidation trend, lower purchasing demand, manufacturers to consume inventory based.

Market forecast

At present, sulfate, adequate market supply, market demand and overall performance in general, downstream manufacturers generally buy fertilizer, is expected next week the market continued steady light market domestic sulfuric acid, acid value fluctuation.

In October 25, 2016, the United States expressed concern about the new export subsidies for India textile and apparel at the meeting of the WTO subsidy and balance measures, and claimed that the subsidy plan made India a step backwards in compliance with the agreement. In accordance with the provisions of article 27.4 of the WTO subsidy and balance measures (SCM), India has 8 years

to gradually eliminate its subsidies to the textile and garment sector. Sources pointed out that the U.S. trade officials said that in 2007 the export competitiveness of India has reached the threshold, should be abolished in 2015 subsidies, and now the transition period has ended, the subsidy issue has lost patience. A senior India trade official said India will refute U.S. claims, said that due to some domestic textile and apparel sector need to support subsidies. India government to blanket, handicrafts and other textiles to include loan interest, the export of specific markets, such as non import tariffs and other subsidies.

A senior trade officials of the India Ministry of Commerce and industry pointed out that the India WTO meeting rejected the U.S. claim, India reached export competitiveness in 2010 than in 2007. The India authorities have said that most of the export subsidies to the textile and garment sector have been lifted, and that they will be abolished by 2018. The Department provides 45 million jobs and accounts for 14% of the total exports of the country.

India will carry out bilateral consultation and the United States, that support and some parts of the government to hire a large number of personnel of textiles and clothing industry. According to the provisions of article 27.6 of the SCM agreement, if the development of China members (per capita annual income of less than $1000) to export a product for 2 consecutive years has accounted for the products in more than 3.25% of world trade in, the products that have export competitiveness. In accordance with Article 27.4 of the agreement, in 8 years, in a gradual manner, and gradually eliminated its export subsidies.

According to the relevant inferences, 2015 pyraclostrobin has become the world’s largest fungicides. Pyraclostrobin series of products, such as Karen and 100 Thailand, in Chinese market selling pyraclostrobin series products, this year’s growth rate remained at 44% ~ 70% growth level, in the global market, pyraclostrobin with rapid growth of more than 10%.

Pyraclostrobin become fungicide global sales of the first, this is certainly the fact. Pyraclostrobin will become the largest market Chinese fungicide sales?

The answer is yes. Because the whole pyraclostrobin in the global market, mainly in sales, 70% in South America, Asia accounted for only 3%, so the market China pyraclostrobin market space, is not open to obtain hair growth, immeasurable space pyraclostrobin in the future. What time pyraclostrobin can become fungicide NO.1 Chinese market? Pyraclostrobin in China market become where the path of the NO.1 and the breakthrough point?

From the target market, pyraclostrobin in the global market share of more than 40% distribution, mainly in the upland field crops, and fruit trees and vegetables accounted for only 20%. in the entire market so the next growth point of pyraclostrobin at a glance.

From the domestic application of fungicide data, at present, in the domestic market of the quantity of fungicide, upland field crops accounted for only 6%, while in South America is close to 40%, so the field crops, pyraclostrobin huge space.

Recently, Panzhihua V-Ti-bearing hi tech Industrial Development Zone, many enterprises to waste water and other acts by Jinsha River CCTV exposure, Sichuan provincial environmental protection department in conjunction with the Panzhihua government to set up a joint investigation by one investigation of high-tech enterprises in the zone, most of the local titanium, titanium dioxide enterprises gradually shut down.

Panzhihua titanium dioxide, titanium concentrate production capacity ranks first in the domestic production capacity. At present, China’s titanium dioxide production capacity of 3 million 700 thousand tons, Panzhihua titanium dioxide production capacity of 600 thousand tons, accounting for 17% of national production, titanium concentrate production capacity accounted for more than the total production capacity of 70%, the Panzhihua area of titanium dioxide, titanium concentrate production capacity ranks first in the country.

Pollution incident forced environmental verification, policy overweight is expected to boost the titanium dioxide prices continued to rise. Titanium dioxide industry is heavily polluting industries, product emissions, high energy consumption, is an important monitoring object of environmental protection in china. The global titanium dioxide industry, industry concentration is high, and longmang billions after the completion of the restructuring, production capacity reached 560 thousand tons, becoming the world’s fourth largest titanium dioxide enterprises, after DuPont, Huntsman and Koster, the world’s top 7 enterprises in titanium dioxide production capacity accounted for the total global production capacity of 60%, while China’s titanium dioxide production about 70 enterprises occupy the total global production capacity of 35%, and the sulfuric acid method, serious environmental pollution and the industry is relatively dispersed, with the elimination of environmental upgrades of small and medium-sized enterprises, the titanium dioxide industry is expected to gradually concentrated. The Panzhihua incident, the high tech Zone in the start time of small and medium enterprises, titanium concentrate supply contraction to promote the cost of titanium dioxide to go high, the superposition of titanium dioxide industry production capacity, product prices are expected to continue to rise.

Billions (002601) acquisition of Sichuan longmang, industry chain advantages, is expected to benefit from the product price priority. The company in September through 9 billion increase the completion of the acquisition of Sichuan longmang, Lomon titanium industry with large vanadium titanium magnetite resources, currently has 600 thousand tons of titanium ore mining capacity, forming a “- vanadium titanium magnetite ilmenite concentrate – titanium dioxide,” a complete industrial chain, the new mining area and longmang plans to gradually in the development of the Panzhihua area, will provide for billions of titanium concentrate, thereby reduce the production cost. We believe that the Panzhihua high tech Zone will also lead to discontinued events titanium ore prices, has the advantage of the industrialization of billions company will benefit from a priority.

In December 1, 2016, the U.S. Department of Commerce announced amendments to the imports from Chinese 1,1,1,2- tetrafluoroethane (R-134a) anti-dumping preliminary results, including mandatory respondent companies Zhejiang chemical Limited by Share Ltd (Zhejiang Sanmei Chemical three Industry Co., Ltd.) and Jiangsu Three Chemical Co. Ltd. (Jiangsu Sanmei Chemicals Co., Ltd.), all China / exporter manufacturer (see list below) the weighted average dumping margin were revised to 232.30%.

In March 24, 2016, American HFC Coalition and International Association of Machinists and some members of the and Aerospace Workers in March 3, 2016 to submit the application, the U.S. Department of Commerce announced on imports from China 1,1,1,2- tetrafluoroethane to start anti-dumping investigation.

In June 6, 2016, the United States International Trade Commission (USITC) made the anti-dumping industry injury affirmative preliminary determination on imports from the China products involved.

In September 30, 2016, the U.S. Department of Commerce announced anti-dumping made affirmative preliminary determination on imports from Chinese 1,1,1,2- tetrafluoroethane, ruled that mandatory respondent companies Zhejiang Sanmei chemical Limited by Share Ltd and Jiangsu Sanmei Chemical Co. Ltd. and other have separate tax treatment involving producers / exporters dumping margin is 137.23%, do not enjoy the tax treatment of the separate mandatory respondent enterprises in Zhejiang of Quzhou Lianzhou refrigerant Co. Ltd. and other Chinese manufacturer / exporter of the dumping margin of 188.94%. The case involving the coordination of tariff lines of products under 2903.39.2020.

at home and abroad in 2016 on the gene industry has a lot of relevant policies, an industry vigorous development requires not only the continuous infusion of capital, the policy needs more powerful baton to guide the healthy development of the industry, regulation.

16 years, Hubei, Fujian NIPT pricing, respectively 1460/ times, 1400/ times; 16 years, has been in the “frozen” state of clinical laboratory project (LDT) the emergence of the “warmer” possible; 16 years, the clinical application of consensus Chinese first two generation sequencing technology introduction, CFDA released “NGS detection reagent quality technical evaluation of general technology of” guiding principles, improve the access threshold, the reasonable application of NGS gene detection and guidance, norms.

Domestic articles

[1] CFDA collection of 4 types of medical equipment manufacturing enterprises information:

From January 8th to 22, the State Food and drug administration center medical review issued a solicitation of 4 kinds of medical information production enterprises. Are: 1 genotyping of hepatitis C virus detection reagent kit; related detection of 2 blood type and automatic blood analyzer; 3.Her-2 gene detection kit (fluorescent in situ hybridization); 4 Mycobacterium tuberculosis drug resistance gene mutation detection reagent.

The technical review of these 4 types of medical guidelines are being prepared, the day after will be introduced. These 4 types of medical 3 belongs to diagnostic reagents, 1 belong to the testing equipment. Is a good thing for the major diagnostic reagents field enterprises.

From the cost side, coal is the main raw material for the production of methanol in Northwest china. At present, coal prices have stabilized, and the development and Reform Commission issued from November 20th onwards will improve the notice of non residents with gas price of 10% – 20%, it must have the support of the northwest region methanol prices.

Next month forecast to Hong Kong is still not much

Is the main consumer of methanol olefin, pre Ningbo flight due to equipment problems short load down to 60%, has been restored, Xing Xing energy load to 80%, Nanjing is expected to maintain normal operation of Wison, these sets of olefin plant December will resume normal operation. According to the law in previous years, into December, the traditional downstream will enter the off-season demand, will gradually reduce the operating load. The Spring Festival this year earlier than in previous years, do not rule out the formaldehyde factory work may advance the Chinese New Year; Nanjing BP50 million tons of acetic acid plant in November 21st to stop, restart the program in early December. At present, the traditional December compared to November has been shrinking downstream demand.

In December, methanol to Hong Kong is still not enough, according to the schedule, there are about 700 thousand tons. In addition, the recent port circulation of goods continued to decline, the latest port circulation supply has plunged to 158 thousand and 300 tons, the port is to inventory status. According to statistics, at present, the coastal areas (Jiangsu, Zhejiang and Southern China) methanol inventory has dropped to 669 thousand and 600 tons from 1 million 151 thousand and 600 tons, almost halved in the low level of history, it will also support methanol prices.

Overall, in port stocks at low, estimated in December to Hong Kong is still not much and northwest shipping pressure weakened in the background, is expected to fall sharply in December the possibility of methanol is not recommended cautiously bearish.

chemical industry as a traditional industry, the quiet surface contains the active risk and opportunity. Environmental supervision enterprises must continue to strike out, green and sustainable way; overcapacity is still a serious problem, but more need to guard against the deterioration in demand; raw material route and process change and promote the industry reshuffle, new material technology innovation brings surprises, which will also contain investment opportunities worth looking forward to the chemical industry; deeply involved in globalization, wary of elements the cost of weakening the competitiveness of the industry. In 2017, we believe that from the following aspects of looking for investment opportunities, low oil prices, demand robust sub industry layout. Daily chemical and food additives industry needs a steady growth. Ahead of the layout of the The Belt and Road “, entered the harvest period subject to capture. The pesticide recovery was exposed sharp, on the structure of a strong variety. Focus on areas of strength, build intensive and meticulous farming industry. New materials, times new materials (600458.SH) PI film project progress than expected, electronic grade PI film import substitution space is wide, rail business increased steadily, BOGE improve the performance of high temperature nylon and other new materials is also worth looking forward to, the proposed active interest.

This week, WTI crude oil rose 4.97%, to close at $47.96 / barrel; Brent crude oil fell rose 4.57%, to close at $49 / barrel; NYMEX natural gas rose 7.87%. Due to the recent rain and snow effects, before the end of two alkali enterprises stocking in advance, two alkali market continues to heat up, heavy soda ash, light soda ash rose 13.64%, 5.8%. This week, the domestic MDI by major manufacturers maintenance polymerization, delivery time is difficult to restore, drying out of stock market rose, rose 10.25%, but subject to the off-season demand flat high acceptance is limited, still need to slow digestion. In addition, this week the downstream tire operating rates remain high, and domestic areas stop cutting period comes, rubber prices continued to be strong, up 11.6%. This week, epichlorohydrin by 8.64% ammonium chloride by 5.77%. Urea appeared back slightly, down 1.96%.

recently, the Ministry of raw material industries Division issued a document, the “petrochemical and chemical industry development plan (2016 ~ 2020)” interpretation.

Petrochemical and chemical industry is an important pillar industry of the national economy. “13th Five-Year” (2016 ~ 2020) during the “planning” of the tire industry in the economic development and the integration of the two aspects, put forward a clear goal.

According to the National Bureau of statistics industry, petrochemical and chemical industries including chemical raw materials and chemical products manufacturing, rubber industry and oil processing “in three parts.

Among them, the chemical raw materials and chemical products manufacturing and rubber products industry accounted for 76% of the total economy industry “,” petroleum processing “accounted for 24%.

“Chemical raw materials and chemical products manufacturing” and “rubber products industry” the growth rate of industrial added value, and the coefficient of elasticity is 1.46 GDP.

The supply side, surplus relief, competition structure optimization

At present, silicone monomer effective production capacity of about 2 million 500 thousand tons / year, output of about 1 million 800 thousand tons, the operating rate has increased to more than 70%, the future of the new productivity growth slowed sharply, demand will still maintain a growth rate of about 5%, the industry operating rate will continue to improve. At the same time, tighter environmental protection is a big trend, especially in the central part of the ongoing environmental inspectors, shutting down the device will be normalized. The competition in the industry structure optimization, four companies of the industry concentration is close to 50%, capable of producing silicone intermediate enterprises only 13, the price war is expected to end.

The demand side, demand for real estate has channeled, will continue

Silicone downstream about 23% of the demand comes from real estate, real estate is mainly used for decoration, with new and second-hand housing are closely related. In the first half of 16, the real estate industry ushered in a wave of construction peak, rising demand has gradually transferred to the silicone industry. Although the purchase of the policy tightening, but in view of new construction brought the demand lag and still high volume of second-hand housing transactions, we believe that real estate demand will continue to bring more than half the time. And the export quantity of demand also increased slightly.