China’s paint industry is a different industry from other special industries, the overall level of paint industry, the overall low level of marketing. Market operation methods and rules of the game is different from the ceramic, wood flooring, hardware, lamps, up to the plate is almost the same, but in China this big market, paint companies have their own unique side.

China’s industrialization and urbanization process for the industrial coatings, architectural coatings and other rapid development provides an opportunity for China’s coatings industry, the technological level of rapid progress, the variety of paint is also increasingly rich and perfect, paint production has also been greatly improved. At present, China is the world’s largest paint producer. Prospective Industry Research Institute data show that in 2016 the paint industry over the year the size of industrial enterprises above designated size reached 18,997,800 tons to the global total coating production of about 64.557 million tons, accounting for the proportion of global output close to 29.42%, ranking first in the world.

According to incomplete statistics, the current nearly 10,000 paint companies are mainly concentrated in the Yangtze River Delta, the Pearl River Delta and the Bohai Sea region. From the provinces of the paint production accounted for the proportion of the national production point of view, in 2015, Guangdong Province, Jiangsu Province and Shanghai, the country’s top three paint production areas, Jiangsu Province, 199.33 million tons of production, Hunan Province, about 1.184 million Ton, ranking fourth and fifth in the country.

China’s paint industry’s market capacity prospects, the downstream demand will continue to maintain the growth momentum of the paint industry. According to statistics, in 2016 the paint industry over the annual industrial enterprises above designated size reached 18,997,800 tons, an increase of 7.2%; main business income reached 435.449 billion yuan, an increase of 5.6%.

After the development in recent years, the number of enterprises in the industry increased rapidly, the coatings industry market competition has become increasingly fierce, the current paint market environment has become increasingly complex. In the face of competition in the industry, many paint companies are seeking diversified development. At present, diversified development is one of the enterprises’ development strategies of many enterprises including paint enterprises. The so-called diversified development refers to the diversified development. The same product or service of a development strategy, but the implementation of the effect there are significant differences.

China’s current paint industry is about 80% of small and medium enterprises, and this part of the small and medium-sized paint enterprises occupy more than half of the domestic paint market share. In the environmental pressure, supply side reform, raw material prices continue to soar and many other factors under the influence of 80% of the paint business, more than 50% of small paint companies are facing the dilemma of collapse.

Since the fourth quarter of 2016, the domestic prices of rare earth products rose. Some analysts believe that the current round of Rare Rare prices are mainly affected by production quotas, rare earth purchasing and storage, as well as to combat rare earth illegal mining and other supply side policy factors. With the industry supply side of the reform process of deepening, rare earth prices is expected to continue.

Product prices continue to rise

May 15, the South Rare Earth Group released the latest heavy rare earth single oxide listing price, europium oxide prices rose 20,000 yuan to 620,000 yuan / ton, or 3.3%; terbium oxide rose 10 million to 3.5 million / ton, Or 2.9%; lutetium oxide rose 10 million to 5.1 million yuan / ton, or 2.0%; yttria rose 1,000 yuan to 21,000 yuan / ton, or 5.0%.

Prior to this, the North Rare Earth Group has released the third price increase notice, continue to increase the price of praseodymium neodymium rare earth products. Among them, praseodymium neodymium oxide rose 4,000 yuan to 297000 yuan / ton, or 1.37%; lanthanum rose 550 yuan to 15220 yuan / ton, or 3.75%; cerium oxide rose 340 yuan to 11670 yuan / ton, or 3%.

According to Societe Generale Securities statistics, as of May 15, the domestic terbium oxide, praseodymium oxide, neodymium oxide and lanthanum oxide and other products prices were up 19.13%, 13.08%, 10.42% and 6.67%.

Affected by price factors, rare earth industry listed companies appear reversed. In the first quarter of 2017, the operating income of rare earth in the north was 1.999 billion yuan, an increase of 142.94%; net profit of 74.46 million yuan, an increase of 1018.7%; Rising colored, Minmetals rare earth net profit of 1.72 million yuan and 8.33 million yuan, Are achieved year on year profitability.

The above-mentioned companies in the financial report pointed out that the first quarter of 2017, the company’s operating income increased year on year mainly due to the rebound in market prices of rare earth products and product sales increased due.

Supply side shrink

It is argued that the rapid contraction of the supply side is the direct cause of the rising price of rare earth in the current round.

Since 2011, the supply of rare earth industry, a serious surplus, the problem of cheap sales, industry profitability continued to decline.

According to statistics, in 2015, the overall loss of rare earth industry 600 million yuan, 2016 January-October the overall loss of 160 million. According to the latest data released by Chilean Consulting, China’s rare earth exports in 2010 were about 46,700 tonnes, up 34.2% year on year, but the export value was only $ 342 million, down 8.4% year-on-year.

Some analysts have pointed out that the “black rare earth” is a large number of rare earth industry caused by excess capacity of the important reasons.

In 2016, China’s rare earth supply is about 168,000 tons, while the national rare earth quota index of about 105,000 tons, calculated, “black rare earth” production close to 63,000 tons, accounting for about 60% of the legitimate supply.

November 2016, Ministry of Industry and Information Technology United Ministry of Ministry of Land and Resources, Ministry of Environmental Protection, Ministry of Public Security and other departments issued a document from December 2016 to April 2017 in the country to carry out special action against illegal acts of rare earth violations.

Since then, against rare earth illegal special action throughout the country continue to advance. On May 9, 2017, the Ministry of Industry and Information Technology of the Ministry of Industry and Industry (Rare Earth Office) organized a meeting on the coordination of inter-ministerial coordination mechanism for rare metals. The meeting informed the progress of the special action phase of the Rare Earth Illegal Regulations.

According to the minutes of the meeting, since the country launched a special action against illegal acts of rare earth violations, a total of 23 provinces (autonomous regions) people’s government organizations on the relevant areas of rare earth mining, smelting separation, comprehensive utilization and trade enterprises to carry out a comprehensive inspection, Enterprises 415, identified 61 illegal clues, has been handled according to 23, and 38 are being processed.

During the period, the Ministry of Industry and Information Technology in conjunction with the relevant departments of the news media and experts to Guangdong, Hebei, Henan, Shandong and other provinces (regions) rare earth enterprises to carry out on-site verification of the problems found, have requested local verification as soon as possible.

Minutes show that through the early order to rectify, rare earth industry production and management situation has improved. From January to March of 2017, the income from the main business of the rare earth industry increased by 21% year on year and the profit increased by 29% year on year. As of the end of April, lanthanum oxide, neodymium oxide, terbium oxide and other products prices year on year growth of 35%, 5%, 31%.

At the same time, rare earth purchasing and storage continued to carry out effective support for the formation of rare earth prices.

According to the China Securities Research Report, since December 13, 2016, rare earth industry, the State Reserve has completed three rounds of bidding, the cumulative realization of storage and storage of more than 6400 tons. Among them, in January 2017, the second round of the State Reserve tender purchasing and storage of 2,000 tons, the tender price than the previous overall floating 2% -8%.

March 28, the third round of rare earth State Reserve tender landing. The tender information shows that the total amount of the tender for the State Reserve is about 3,000 tons, of which neodymium oxide tender price of about 27 million / ton, the number of 220 tons; dysprosium oxide price of about 1.25 million / ton, the number of 450 tons; The price of about 3.1 million yuan / ton, the number of 178 tons; europium oxide tender price of about 500,000 yuan / ton, the number of 170 tons.

Statistics show that as of March 28, the domestic price of europium oxide tender than the end of 2016 increased by 18.48%; terbium oxide, neodymium oxide tender prices were higher than the end of 2016 growth of 7.74% and 5.51%.

Insiders said that the review of the three purchasing and storage, storage reserves and purchasing and storage prices are gradually increased, the industry generally feel the frequency and size of storage and storage is different from previous years, showing a high frequency, small size, and each micro-premium , Which is conducive to the formation of positive market expectations, help the market confidence and the continued recovery of the economy.

Price is expected to continue

The market generally believe that the current rare earth industry overall order has been improved, product prices are expected to continue to rise.

Societe Generale Securities pointed out in the research report, through the mining, smelting and separation of indicators to further focus on the black and high pressure on the rare earth, the six rare earth group’s voice is increasing, the price control will gradually show.

Huatai Securities believes that the six rare earth group 100% market concentration, the formation of the two north and south two rare earth price alliance to maintain market stability, supply shrinkage demand steadily, purchasing and storage to help the historical accumulation of inventory consumption, rare earth industry has been formed.

From the supply side, in October 2016, the Ministry of Industry issued the “Rare Earth Industry Development Plan (2016-2020)” (hereinafter referred to as “Development Plan”). According to the development plan, by 2020, the domestic rare earth mining will be controlled below 140,000 tons, the average annual growth rate should not be higher than 7.4%; mine mining, smelting separation and comprehensive utilization of resources into the six group management, Large-scale rare earth enterprise groups, no longer add mining rights.

April 13, 2017, the Ministry of Industry issued the “2017 first batch of rare earth production total control plan notice” (hereinafter referred to as “control plan”). According to the control plan, 2017, the domestic rare earth mineral products planned production of 52,500 tons. Among them, the light rare earth project production 43550 tons, medium heavy rare earth production of 8950 tons; the same period, the domestic smelting separation products planned production of 50075 tons. There was no significant change in the quota between the provinces and autonomous regions, and the mining targets were obtained directly from the corresponding rare earth groups.

At the same time, “black rare earth” is expected to strike against normal. February 2017, the Ministry of Commerce and other seven departments jointly issued “on the promotion of important product information traceability system construction guidance” proposed to carry out rare earth enterprises retrospective pilot, the establishment of rare earth special invoices, rare earth products export declarations, business files and other Information sharing mechanism to rare earth mineral products, rare earth smelting separation products as the focus, to production and operation accounting, product packaging logo as the main content, to accelerate the construction of rare earth product traceability system to achieve full traceability.

May 9, the Ministry of Industry in the organization of rare metals inter-ministerial coordination mechanism liaison meeting pointed out that to further increase coordination and cooperation, problem-oriented in-depth promotion of special rectification work, joint disciplinary illegal enterprises, held by the implementation of regulatory requirements Responsibilities of the relevant units and personnel responsibilities; the next step, the relevant departments will form the inspection team to carry out supervision of the relevant provinces (autonomous regions).

From the demand side, the new application of the continuous mining is expected to bring support for rare earth prices.

According to the domestic rare earth consumption structure, at present, about 35% -40% of China’s rare earth is used as permanent magnet material. Rare earth permanent magnetic materials not only for the traditional home appliances, electric bicycles, luggage deduction and other fields, but also for wind power, new energy vehicles, home appliances, energy-saving elevators and other emerging areas.

January 23, 2017, the Ministry of Industry and Development and Reform Commission, Ministry of Science and Technology and the Ministry of Finance jointly developed a “new material industry development guide” (hereinafter referred to as “Development Guide”). According to the development guide, the future should speed up the development of new and efficient semiconductor lighting, rare earth luminescent materials technology development, breaking the amorphous alloy in rare earth permanent magnet energy-saving motor application of key technologies, vigorously develop rare earth permanent magnet energy-saving motor and supporting rare earth permanent magnet materials.

Minsheng Securities pointed out in the research report that the future demand side should focus on high-end materials. From the high-end rare earth permanent magnet material demand structure, wind power, new energy vehicles, energy efficient motor is high-end permanent magnet material three growth points. Among them, the high-end materials in the field of new energy automotive applications worthy of attention.

In addition, rare earth in the motor vehicle exhaust purification catalyst, catalytic combustion, petroleum catalytic cracking and other fields of broad prospects.

According to the Minsheng Securities Research Report, from the development of the industry, the domestic automobile exhaust gas purification catalyst industry is in the growth period, one fifth of each year in the car need to replace the catalyst, the market prospect is huge, urgent demand.

At the same time, rare earth exhaust gas purification catalyst used in rare earth is mainly cerium oxide, praseodymium oxide and lanthanum oxide mixture, rare earth exhaust gas purification catalyst low price, good thermal stability, high activity, long life, and With anti-lead poisoning characteristics, there is still no more suitable than the rare earth elements to do the car exhaust catalyst, which is low risk of substitution.

Some brokerage analysts expect the future demand for rare earth industry growth will stabilize at 6% or more, which is expected to increase the demand for rare earth coke is expected to reach 15% -20%.

Modern coal chemical industry is the product of high oil price era. However, there are unexpected circumstances, with the international crude oil prices turned down, all the way soared, China has just emerged from the modern coal chemical industry can be described as suffering, miserable. So, modern coal chemical industry how to deal with the impact of low oil prices?

First, to face the impact of oil prices. International crude oil prices since 147 US dollars / barrel appeared cliff down since once dropping to 40 US dollars / barrel below, is still hovering up and down at 50 dollars. Modern coal chemical industry, many of the breakeven point corresponds to the international crude oil prices in 70 US dollars / barrel, and in the current 50 US dollars / barrel market environment, the modern coal chemical industry is facing a general loss situation.

According to the author understands that the domestic production of several coal-based natural gas demonstration project costs remain high, loss of shadow accompanied, there is no one corporate profit; coal oil project if there is no national consumption tax policy support, must also be a comprehensive loss ; Coal-based ethylene glycol project leading enterprises Danhua company continuous losses, other companies are more loss and less profit, and some are still at the bottom of the loss; coal olefins in addition to a small number of complete industrial chain enterprises, the project is the majority of losses; coal Fertilizer projects due to full capacity surplus, a large area of ​​natural loss is inevitable.

Perhaps some coal chemical companies hope that the international crude oil prices to pick up and improve the market, some companies blindly optimistic that the next three to five years, the international crude oil prices will return to 70 US dollars / barrel above. But the practice has repeatedly told us that long-term energy price forecast has never been allowed, if the fate of enterprises hope in the next few years the international crude oil price forecast is extremely dangerous and unreliable.

Second, to find a response to the policy. In the face of the huge challenges posed by international crude oil prices to the coal chemical industry and the uncertainty of international crude oil prices, coal chemical companies must lose their fantasy, based on the current 50 US dollars / barrel of international crude oil prices in reality even worse market environment Cost reduction, increase the amount of savings, tapping the potential transformation and innovation and development, in order to change the project break-even point, completely reverse the modern coal chemical industry a comprehensive loss of the passive situation.

In fact, according to my understanding, many coal chemical demonstration projects through efforts, has or is changing the status quo. For example, in the same market environment, some coal-to-olefins enterprises through the whole industry chain in all aspects of the “intensive” in the main product production capacity to make a fuss, in the by-product of the deep processing efforts, product cost has been effectively controlled, To achieve a profit; some coal-based ethylene glycol enterprises by improving product quality, so that products are recognized by the downstream business, the full release of production capacity has also realized a turnaround; some coal chemical enterprises in the demonstration upgrade to start an article, For example, some coal-to-olefins project began to use the “one-step” advanced technology and technology from syngas to olefins, which can significantly reduce product costs, reduce consumption and achieve profitability; some coal-based natural gas companies consider adding peak peaking devices To achieve multi-channel sales of products to expand the market to fully release the purpose of production capacity.

If the coal chemical industry to achieve international crude oil based on 50 US dollars / barrel price break even profit, such enterprises will be in the future market in an invincible position.

Modern coal chemical industry is the country to encourage the development of new industries, is still in the industrial demonstration stage, in the initial stage of development that encountered the international oil price sniper, the situation is difficult. On the one hand, the state is introducing relevant policies to support, as soon as the introduction of coal fuel consumption tax five years free preferential policies, I believe will continue to introduce new support policies; the other hand, coal chemical enterprises should be in accordance with the concept of circular economy, To promote the modern coal chemical industry and coal mining, power, petrochemical, chemical fiber, salt chemical industry, metallurgical building materials and other industries integration development, extend the industrial chain, expand industrial clusters, improve resource conversion efficiency and Industrial competitiveness.

As long as the national, local and enterprise three levels of common force, modern coal chemical industry will be able to withstand the impact of low oil prices, ushered in the spring of the spring.

The recent international crude oil prices in the market for the cut agreement may be extended for 9 months optimistic expectations of speculation in the atmosphere continued to rise, in addition, both US crude oil inventories and production are also reduced to provide upward support for oil prices, crude oil futures prices rose sharply last week The The week has more oil-producing countries agreed to extend the deadline for the agreement, and Saudi Arabia and Russia issued a joint statement that the two countries will extend the cut-off period of 9 months to reach a consensus on the market, the market is expected to delay the expected bullish expectations , To provide upward support for oil prices. Affected by this, the current rate of change in the positive range of continuous extension.

According to the calculation of the United States, as of May 18, the fifth working day, the reference price of crude oil varieties of 50.16 US dollars / barrel, the rate of change of 1.86%, the corresponding retail price of gasoline and diesel should be raised 65 yuan / ton, May 24 at 24 o’clock. Late international oil prices will remain volatile trend, the rate of change is relatively small range of operation, the current retail price adjustment remains variable.

According to the calculation of the United States, as of May 18, the fifth working day, the reference price of crude oil varieties of 50.16 US dollars / barrel, the rate of change of 1.86%, the corresponding retail price of gasoline and diesel should be raised 65 yuan / ton, May 24 at 24 o’clock. Late international oil prices will remain volatile trend, the rate of change is relatively small range of operation, the current retail price adjustment remains variable.

From the domestic market point of view, the beginning of the week in the retail price cut driven by the domestic gasoline and diesel prices with the fall, but the previous market has digested some of the decline, so the rate is relatively limited. Part of the low inventory users docile appropriate cover short positions, the market showed a temporary pick up. After the crude oil prices continue to close up, the rate of change is extended to the range, the news side support fade. And some of the main sales ahead of the completion of the task, so take the opportunity to tentatively push up, which due to early diesel prices fell to a low, the rebound rate is relatively obvious. At the same time, the downstream user stocking operations are completed one after another, and a short period of time the final lack of significant positive boost, the industry re-market stocking will be low, the market buying and selling atmosphere gradually slowed down.

From the retail point of view, the recent domestic gasoline and diesel wholesale prices fell back up, the retail price has honored the biggest decline in the year, so the wholesale and retail prices narrowed sharply. According to Jinlianchong monitoring data show that as of Thursday (May 18), the domestic gasoline retail sales of 1799 yuan / ton, down 235 yuan / ton; diesel theoretical retail profit of 1352 yuan / ton, Down 272 yuan / ton on Thursday. In the latter part, the retail price adjustment is still suspense, the domestic refined oil market or continue to organize the trend, is expected next week, domestic gasoline and diesel wholesale and retail price difference or limited volatility.

Into next week, the international oil prices or continuation of the shock pattern, the rate of change continued to range fluctuations, the current round of retail prices rose slightly with the probability of stranded coexistence, the news face market support efforts are limited. The recent increase in gasoline consumption, coupled with the next week coincides with the Dragon Boat Festival holiday, the market after a period of time after the consumption of the industry have replenishment demand, but low-end resources are still flooding the market, the main shipments difficult to significantly improve. Diesel demand is still flat, environmental issues under pressure on the terminal mining, infrastructure and other outdoor oil business operating rate is limited, a certain degree of inhibition of diesel sales higher. Next week will enter the end of the month, most of the main units to catch up with the main sales tasks, but the social stock is more abundant, under the pressure of major shipments still maintain a large preferential efforts. From the supply side of the domestic main refinery maintenance is limited and the refining rate was sharply higher, the market supply pressure or continued overweight. Overall, the news and supply and demand fundamentals are difficult to find a good support, is expected next week, the domestic refined oil market or will enter the finishing stage, with the holiday near the market or usher in a wave of replenishment tide.

Zhongyuan Oilfield and Sinopec Rising Star Oil Company to carry out the first photovoltaic power generation project – Pu Dong Oil Plant Ma and Qiaokou two joint stations as photovoltaic solar power pilot project recently successful trial operation, has been officially put into operation. This is also the first in the oil and gas gathering and transportation station put into operation a successful photovoltaic power station, the joint station to run the equipment used green clean energy.

Joint station as a key unit of class A, safety and environmental requirements are relatively high. Oil field and the star company combined with the safety of the station spacing, make full use of the reservoir above the space and idle space, careful deployment, more than 2,000 power generation board according to the matrix constitute a solar power system. After the realization of grid-connected power generation, the power supply service center technical staff actively carry out the daily operation and maintenance work of the photovoltaic power station, the staff station on duty management, the implementation of 24-hour safety and environmental protection, security for the system safe operation.

Up to now, the project has accumulated more than 150 million kilowatt hours, energy-saving standard coal more than 300 tons, reduce carbon dioxide emissions more than 1,000 tons. Not only to ease the power shortage in the oil area, the excess electricity can also be online sales, and create benefits, to promote the development of green transformation of oil will play an important supporting role.