Chemical Industry: Warmer Industry as a Whole

The methyl ethyl ketone price continues to rise. Affected by the increase in raw material prices and the increase in downstream export demand, the price of methyl ethyl ketone in East China continued to rise by 6.85% to RMB 11,700/t last week, and has risen by 15.8% in the past month. At present, the supply in the domestic market is stable, and the downstream demand has not changed. We expect the domestic methyl ethyl ketone price to stabilize, and the short-term will mainly be consolidation.

The overall strength of the polyester industry chain is strong. With the arrival of the traditional production season and the increase in the prices of raw materials such as upstream PTA and MEG, the polyester industry chain as a whole strengthened last week. The prices of polyester staple yarns and polyester filaments (FDY) in eastern China rose by 2.77% and 2.83%, respectively. To 13,720 yuan / ton and 16,350 yuan / ton.

The upstream raw materials PTA and MEG rose by 2.93% and 4.33% respectively, to 10,550 yuan/ton and 10,350 yuan/ton. We expect short-term domestic polyester product prices will continue to rise slightly.

Spandex prices stabilized and recovered. With the arrival of the traditional production season, the domestic spandex market has recently received a small number of orders, raw material prices have also shown signs of increase, dealers and manufacturers are bullish on the outlook. Last week, the price of spandex (40D) in East China increased by 3.37% to RMB 46,000/ton. The pure raw materials MDI and PTMEG remained stable for the time being last week, while the price of BDO rose by 3.09% to RMB 25,000/ton.

Due to the increase in downstream demand and the upward movement of raw material prices, it is expected that domestic spandex prices will rise slightly in the short term.

Titanium dioxide prices continue to fall. Due to the recent decline in titanium concentrate prices and insufficient domestic demand, Panzhihua titanium titanium dioxide (rutile) prices continued to fall by 4.57% to RMB 20,900/t last week. At present, weak domestic market demand, the market outlook will mainly depend on overseas orders, and it is expected that the short-term domestic price of titanium dioxide will remain weak.

** Prices stabilize. As prices of upstream ammonia stabilized and demand for downstream compound fertilizers decreased, the price of Anhui Jinbei concentrated decreased by 2.04% to RMB 2,400/t last week. It is expected that the short-term domestic price will be dominated by consolidation.

We expect Yantai Wanhua, Jiulian Development, Hubei Yihua, and Xingfa Group to grow more clearly in the next 2-3 years. It is recommended that investors choose a suitable buying point under systemic risk. And it is recommended to pay attention to the investment opportunities of Tutu shares, Shenma shares and Fluoride.