After months of debate, members of OPEC in week three output to reach an agreement, agreed that since the beginning of January 2017 will cut 1 million 200 thousand barrels a day to 32 million 500 thousand barrels, but the production rate is equivalent to only about 1% of the global output.

Specifically, OPEC’s largest oil producer Saudi Arabia agreed to spare, greatly reduce the production cut of 486 thousand barrels a day, down 10 million 60 thousand barrels, Iraq’s second largest oil producing countries also agreed to cut 210 thousand barrels a day, down 4 million 351 thousand barrels. In addition, non OPEC members Russia unexpectedly also agreed to cut output by 300 thousand barrels a day, contrary to market expectations. However, Iran is not in the production list, but was allowed to increase to 3 million 900 thousand barrels per day.

Analysis of the industry, while the OPEC move intended to stimulate the sluggish rebound in international oil prices, but the production is very difficult to achieve the expected effect of dumbledore. On the one hand, the OPEC production rate is low, only about 1% of global output and economic growth, lack of motivation, the increased demand for crude oil is slow, difficult to change the basic situation of oil city oversupply fundamentally; on the other hand, the U.S. shale oil will regain the opportunity for development, in addition to the United States President elect Trump that will relax outside of American oil limit, because OPEC cut the initiative to make the market share and painstakingly create a rising price trend, will also boost the shale oil production increased rapidly.

As you can see, after the international oil prices slightly warmer has made the shale oil drilling number showing growth. As of December 2nd week, the U.S. oil drilling activity to increase the number of 3 to 477, the highest since January. In the past 25 weeks, the number of active drilling oil has accumulated an increase of 155, once the oil price continued to pick up, will make the shale oil yield increase rapidly, thus bullish effect largely offset the OPEC cut. Moreover, the US shale oil production cost has been reduced by nearly half compared with 2014 levels, more survivable if more U.S. shale oil into the market, which will undoubtedly bring new relationship between oil supply and demand shocks.

Previously, many domestic photovoltaic downstream manufacturers also said not to start anti-dumping of EU polysilicon, polysilicon prices will rise because of fear, and GCL and other leading enterprises of domestic polysilicon insists this year imports of polysilicon prices continued to decline has been dumping.

Data show that the polysilicon spot lowest price has dropped to $15 / kg.

Skei Tao Dege believes that the current $15 / kg of polysilicon spot prices reflect not reached between the polysilicon manufacturers and customers price level. Because of overcapacity, many initially caused large purchases of polysilicon enterprises need to deal with the backlog of inventory backlog, to obtain cash.

He pointed out that on the current market situation, at present, there are still a lot of polysilicon inventory to digest, inventory digestion speed depends on the growth rate of installed capacity of photovoltaic industry. In 2011, the global PV installed capacity of more than 27GW, 2012 is expected to exceed 30GW, next year is expected to reach 34 to 40GW, but these may vary according to the development of the market, we believe that the global polysilicon demand will grow.”

But because of the market risk, Wacker has delayed expansion in the United States of Tennessee polysilicon production plant, involving 15 thousand tons of production capacity.

“We will delay the plan for 18 months, is expected to invest in the middle of 2015.” Skei Tao Dege said that by the end of this year, the polysilicon production capacity of about 52 thousand tons.

Early last year, Wacker has announced, will build a new polysilicon production unit in the United States Tennessee, Cleveland City, is expected to put into operation by the end of 2013, the annual production capacity of 15 thousand tons. So, to 2014, Wacker ultra pure polysilicon production capacity will reach 67 thousand tons.

Business News Agency December 18th

Between the EU and the history of Chinese around the PV on the highest amount of trade protection not only for the enterprise China war care-laden, leaving Europe’s largest producer of polysilicon is abnormal anxiety.

The opening ceremony of the gap at the weekend Shanghai center Wacker Wacker Chemie, President and CEO Dr. Rudolf Staudig received the Shanghai Securities News Media Group’s visit and said, we hope that the EU government can rational decision, also hope that the government can not China impose punitive tariffs, because trade war has no meaning.

“To avoid punitive tariffs can really solve the problem itself. The use of Wacker has been supporting the new energy enterprises and Chinese Chinese photovoltaic industry. Therefore, we are currently actively cooperate with the Ministry of Commerce survey data, provide information necessary for their decision, hope the government can not impose punitive tariffs on Chinese. Even if the punitive tariffs were finally implemented, or will China export to Wacker, although the price will be higher, but I believe that our customers will continue to buy.” Skei Tao Dege said.

However, he also denied by China in factories to circumvent the polysilicon anti-dumping practices, “if re started the construction of polysilicon production base in China, in time there will be a delay, there is no way to meet the market demand for rapid growth. This is not a reasonable solution to the problem.” He said.

In his opinion, through negotiations to resolve trade barriers is the best solution. And if to impose punitive tariffs on polysilicon raw material will enable customers to buy high-quality China with a higher price.

chemical industry rose 0.48% last week. The six SWS secondary chemical industry, petroleum chemical industry or the top, up 2.46%. The rubber industry topped decline, down 0.80%. Three in the chemical industry, synthetic leather, chemical phosphorus and phosphate, viscose xng, rose 13.63%, 8.10%, 4.40%; black paint, ink manufacturing and other fiber plate decreases, down 3.79%, 2.21%, 1.90% respectively.

Industry view: continued tightening of Shijiazhuang environmental protection and forced to shut down on the local chemical enterprises, making the supply and demand pattern fine differentiation industry sub sectors to accelerate improvement. Glufosinate, according to the new Austrian shares announcement, a subsidiary of pesticide (Weiyuan biochemical, glufosinate capacity of 1000 tons / year) production, and we expect the larger Shijiazhuang richeschem chemical production possibility also follow. This means that nearly 3000 tons of production capacity glufosinate industry shut down, about 20% of total industry, increase the supply and demand tension. Therefore, glufosinate market price has risen to 13.8 last week million yuan / ton, the mainstream transaction price rose to 130 thousand yuan / ton, extended gains favorable to the lier chemical. Other sub sectors such as glyphosate, has also been driven by rising and tightening capacity of glycine, country shares, Xin’an shares, Hing Fat Group become subject to benefit.

on November 25th at 1:50 in the morning, is located in Bengbu City, Huaishang District of the Shaying River Industrial Park in Bengbu Kai Tak Chemical Co. Ltd. reactor workshop fire.

At 2:11 in the morning, Bengbu city fire department after the alarm quickly went to the scene to fight the blaze, 4 points to 02 points, the fire was under control, the fire extinguished in at 5 a.m..

According to preliminary statistics, an area of about 400 square meters.

At present, the bulletin, a worker is temporarily lost, no other casualties. The cause of the fire and property losses are further verification. At present, the workers lost contact with search and rescue work is in an orderly manner, the fire caused no impact on the surrounding environment.