As a typical coal industry excess capacity, after 2002-2012 years after the golden period of ten years, 2013-2015 years, accompanied by the macroeconomic downturn, shrinking downstream demand and overcapacity, coal prices appear cliff downwards, industry loss continues to expand. At the end of 2015, coal prices dropped to the lowest level in history, for 371 yuan / ton, the average price decline of nearly 30% in 2015.

In 2016 to promote the yield limit of capacity to policy, coal prices rise rapidly in the low base. At the end of December 2016, Bohai thermal coal price of 593 yuan / ton, an increase of 59.4%, although the increase is large, but the absolute price level is not high, and at the end of 2013. “Since the middle of 12th Five-Year”, steel prices continued to decline, by the end of 2015, Lange steel comprehensive price of 2120 yuan / ton, fell to historic lows. In 2016 to the production capacity and demand growth, steel prices rebounded, the end of December 2016 3720 yuan / ton, while steel prices in 2016 rose significantly, but the absolute price level is not high, this high rate is based on the 2015 low base on the price level and the current is 2014.

“Since the middle of 12th Five-Year”, steel prices continued to fall. At the end of 2015, Lange steel comprehensive price of 2120 yuan / ton, fell to historic lows. In 2016 to the production capacity and demand growth, steel prices rebound. At the end of December 2016 3720 yuan / ton. Although steel prices in 2016 rose significantly, but the absolute price level is not high, this high rate is based on the 2015 low base on the price level and the current is 2014.

Therefore, to sum up, the early coal and steel prices generally low, the coal and steel price rise is based on the low price on the basis of the recovery has obvious characteristics, the absolute level of prices is relatively moderate.

4 policy capacity to change the pattern of supply and demand is expected to increase the price

After the measures introduced in the administrative capacity to resume production, slow down and the policy is expected to intensify the supply side contraction. Since the start of 2016 led by the government administrative capacity to act, the actual capacity to achieve the targets of substantial impact on steel production is not large, the impact is mainly reflected in the expected or producers and investors. The market capacity to think has intensified, may supply will decrease, the price may rise.

At present, the domestic enterprise unit overall operating rate is stable, during the Spring Festival manufacturers enterprises have started the normal parking, the market supply is relatively abundant.

The normal operation of the January 23rd Wuxi Baichuan chemical butyl acetate 350 thousand tons / year plant, Nissan more than 200 tons, East China area price 6200 yuan / ton of cash from Southern China area, 6750 yuan / ton of cash since, in the actual negotiations, can take the goods inventory, general.

The normal operation of butyl acetate device in February 10th Shandong Yankuang Cathay 100 thousand tons / year, Nissan 500 tons, this factory price stability, the implementation of 5950 yuan / ton, normal shipment. Dongying Yi Sheng operation device of butyl acetate 100 thousand tons / year, Nissan 200 tons, the ex factory price stability, the implementation of 6000 yuan / ton acceptance factory, to discuss the single, not much inventory.

The n-butyl acetate industry operating rate is stable, the fundamentals in general, and the recent downstream market demand is relatively insufficient, parking terminal enterprises in Southern China, the market traded deserted, short-term market as a whole pile up in excess of requirement.

The domestic market focus week butyl acetate go up, but the market turnover in the doldrums, with strong butanol is higher, the cost of promoting, butyl does not exclude the potential to continue to move up.

2016 titanium dioxide market has been in the voice of prices from 2017, has quietly come to our side.

In previous years the traditional view, the first half of the 17 years, from January to March is the season of titanium dioxide as in the past, although the manufacturers have realized this point, but some domestic and foreign firms have to pull in the off-season, and in January the beginning of the new year the first round of price hikes, such as its January 5th evening announcement said, from now on, various types of titanium dioxide (including titanium dioxide, titanium dioxide chloride) on the basis of the original sales price of domestic customers raised 700 yuan / ton, of all kinds of international customers to raise 100 dollars / ton. But not many manufacturers follow suit.

Titanium dioxide manufacturers

The production of titanium dioxide manufacturers, the China titanium dioxide manufacturers have discontinued the basic Spring Festival this year, all the hype to deliver the original order. It will face a very serious problem, that is the existing warehouse save so many goods, either inland or coastal factories, factory warehouse basically only about half of the inventory, and even some factory only a week or so of the inventory.

In previous years, such as the 2015 Chinese new year, many are titanium dioxide plant downtime to spend the Spring Festival in such a season, to avoid too much pressure with the precious stock funds flow. Now in order to pay off 16 years of order, each is atcapacity, warehouse warehouse explosion is inevitable, if the downstream goods slow after the explosion, a lack of funds, so the impact caused by the titanium dioxide plant as can be imagined.

The use of the downstream units

The Spring Festival is basic to the end of February 10th, the downstream manufacturers to resume production time between February 10th and February 20th, a part about at the beginning of March, very few in mid March to resume. To take Titanium dioxide For the consumer, the main market in previous years, the traditional basic is at the beginning of March or so, 2016 Titanium dioxide The surge will lead to a large number of customers desperately tunhuo. There are about half of the customers are Tun for several months ranging from inventory on the downstream market situation now, in early March to take the goods at the customer is not very strong. Also note that in previous years are to wait until May before the season, will show a strong desire to take the goods.

Environmental pressure

In 2016, the country carried out the strike environmental inspection and rectification for a long time chemical enterprises, a considerable part of the serious pollution of the enterprise has been permanently shut down, some people were arrested by the penalty responsibility. As a part of the domestic chemical enterprises. Titanium dioxide The factory suffered a severe test, but because of the implementation of policies in place, basically pass.

In 2017, China environmental law enforcement efforts will only strengthen not weaken. By the end of 2016, the environmental protection law enforcement has focused on environmental protection law enforcement inspection began to paint a large number of downstream enterprises, currently China medium-sized coating enterprises have up to 5000 or more, but really bigger and stronger is very rare, therefore shutting down the conformity of downstream coatings enterprises but also an urgent matter. Affected by this, the lower bound in the paint business of small enterprises in the next few years off quite a number of the Titanium dioxide Short sales will form a certain impact, but in the long term development of Chinese coating industry any harm.

The domestic production capacity increase

after the return, many chemical raw materials prices, more obvious, such as styrene rose 1000 yuan / ton, up 500 yuan / tons of pure epoxy resin, rose 1000 yuan / ton, in addition, such as acrylic acid, toluene and other product prices also showed a rising trend to.

Under such environment, 2016 concern titanium dioxide has not announced a price increase. Then the possibility of future price how much?

First of all, the product price for each factor, the vast majority of petroleum chemicals such as aromatics, olefins, crude oil prices continued stability depends on the external environment, good, cost is the main driving factors of this kind of product prices. Such as styrene, analysis of the reasons for rising, the impact of the Chinese New Year holidays, dollar market boom, the market is expected to run high styrene dollars deposit; secondly, through continuous upstream prices, equipment maintenance, started small, pull the styrene market.

For titanium dioxide, the current cost of face stability, 46% titanium concentrate at present the whole offer 1550-1600 yuan / ton, the beginning of the January Panzhihua titanium dioxide producers west region has been low load due to the early resumption of production, inventory and market supply, prices generally optimistic short-term titanium concentrate.

The market demand and before a reversal of the trend, the majority of domestic sulfuric acid method of rutile and anatase Titanium dioxide The mainstream offer in 15500-16800 yuan / ton 14000-15000 yuan / ton (including tax). After a year of rising, downstream customers have become accustomed to the routine before the rise, some customers have been stocking, some traders have low value and early stockpile behavior, market supply and demand imbalance occurs or short time.

Recently, China Titanium dioxide The Trade Association for the normal production of the existing 39 more than the size of the whole process of type Titanium dioxide Production enterprises (3 enterprises, 35 sulfuric acid chlorination enterprises, 1 enterprises with sulfuric acid / chlorination) statistics, in 2016, 39 companies Titanium dioxide Total production was 2597212 tons, compared with 2323012 tons in 2015 increased 274199 tons, an increase of 11.8%, a new record high.

The 11.8% is in the background of misfits to the production capacity, output and price is two pronged situation will have problems, but if these incremental belongs to high quality products, if the market has changed, these incremental is healthy, the volume of price possible. High quality products, is to break the old relationship between supply and demand, is also a prerequisite for a healthy market environment.

In February 6th, the international giant, mu (Chemours) announced that, since March 1, 2017, all Ti-Pure up Canada, Asia Pacific, North America, Latin America, Europe, Middle East and Africa Sales? Titanium dioxide The price, including the Asia Pacific region increased 150 dollars / ton. This will stimulate domestic price Titanium dioxide Price increases? In February 28th, the annual report released by the billions, the largest Titanium dioxide The enterprise will once again raise prices? 2017 Titanium dioxide How the price, it is worth looking forward to.

chemical industry as the new year’s Day festival on the first day of Sinopec benzene listing price down 300 yuan / ton to 7100 yuan / ton, resulting in hydrogenation of benzene market continues to decline trend. But the spot market atmosphere did not chase down by Sinopec, imported large quantities of cargo delay arrival caused by spot supply shortage stimulation, on the contrary, the seller’s operation in succession to the atmosphere, buying warmer performance.

Hydrogenation of benzene to January 31st price 7800 yuan / ton, compared with the first month rose 810 yuan / ton, or 11.59%. Among them, the lowest point in the first week, offer 6870 yuan / ton, compared with the first month fell 120 yuan / ton, down 1.72%.

In February 4th, Inner Mongolia Qinghua Group Co., the new price of crude benzol implementation of 5350 yuan / ton, limiting the production of coking plant operation. Henan hung group crude quotations out 6150 yuan / ton, the manufacturer said shipments, inventory is not high. The East China coke enterprises Chijie multidimensional contract before the price, more wait-and-see, wait for the next week auction issued guidelines. The Shanxi coke enterprises not yet part of the contract pricing, before the end, the mainstream 5800-5900 yuan / ton. Coke prices hike intentions, waiting for the next week auction price issued the guidelines. South Africa crude market finishing operation, multiple execution before the contract price, the mainstream of Henan negotiations in 6100-6150 yuan / ton, the south main discuss 5450-5550 yuan / ton. Northwest crude market temporarily stabilize, multiple execution before the contract price, Shaanxi mainstream 5800-5900 yuan / ton, Inner Mongolia area to discuss the mainstream 5350 yuan / ton, Xinjiang mainstream 4350-4400 yuan / ton, the price hike in the main producing areas of support, manufacturers intention to price next week.

In fact, the listing price of Sinopec last rose, boost is limited to domestic benzene market. Coupled with the manufacturers before the sales tasks completed, and a week before the transport limited, downstream stocking was basically completed, the market trading atmosphere light, before the holiday has no obvious market fluctuations. But its price is higher, the actual laying the groundwork for the holiday market.