Metallurgy / Chemicals / Rubber & Plastics

Recently, the State Council Information Office held a press conference to respond to hot issues such as the overall RRR cut, the difference in monetary policies between China and the United States, and the level of inflation. Regarding the comprehensive RRR cut that has officially landed, the central bank's latest statement stated that this is a routine liquidity operation after the return of monetary policy to normal, and it again emphasizes that the orientation of prudent monetary policy has not changed.

The central bank announced last Friday (9th) that it will lower the deposit reserve ratio of financial institutions by 0.5 percentage points on the 15th (excluding financial institutions that have implemented a 5% deposit reserve ratio). In other words, the RRR was reduced across the board from yesterday, releasing about 1 trillion yuan in long-term funds. Regarding the "reverse operation" of the Federal Reserve beginning to gradually tighten its monetary policy, China has begun to cut its RRR across the board. Sun Guofeng, Director of the Monetary Policy Department of the People's Bank of China, said that at present, my country's economy is stable and improving, and there is no preference for a sound monetary policy Changes, the RRR cut is mainly to optimize the capital structure of financial institutions, improve financial service capabilities, and better support the real economy.

The release of funds is imminent, the stock market frequently rises to the limit, and investors regret not increasing their positions

Last Friday the central bank announced a RRR cut, about 1 trillion yuan of long-term funds will be released soon, and A shares quickly boiled. In the morning trading on Monday (12th), the three major A-share indexes opened higher, and the ChiNext index rose strongly, hitting a new high in more than 6 years. More than 3,000 stocks rose, and the market's profitability effect was "extremely good."

On that day, the lithium mining concept sector rose by 8.36%, and the phosphorus chemical concept sector rose by 7.97%. The two sectors took the lead and led the A-share market. In the concept of lithium mines, Shengxin Lithium Energy and Rongjie have their daily limit; "Lithium Electric Power" Ningde Times reached 577 yuan in intraday trading, a record high. Ganfeng Lithium has a strong daily limit and hit a record high. In the concept of phosphorus chemical industry, Chuanjinnuo, Yuntianhua, Xingfa Group, Chuanheng Stock, Lubei Chemical have their daily limit. The new energy automobile giant BYD drove high, rising by 9.68% during the session, approaching the daily limit and approaching a historical high.

Popular sectors such as lithium mining, phosphorous chemicals, optical modules, and network security exploded collectively. Among them, the new energy industry chain continued its high boom, the lithium battery industry-related concept sector set off a wave of daily limit, and BYD, with a market value of nearly 700 billion yuan, was approaching the daily limit. Some stockholders regretfully said: "I regret not increasing the position last Friday!" The brokerage said that the new energy industry chain may continue to maintain a high boom, and the phosphorus chemical sector will also usher in greater opportunities. Monetary policy will remain neutral and loose in the next phase The tone, the market outlook is like an arrow.

Foreign chemical giants collectively raise prices

Regarding the strength of the A-share market, industry insiders said that the news of the central bank's RRR cut was the main driving force. While the stock market has soared wildly, the chemical industry has also been positively driven. Market activity has increased, and companies are optimistic about the market outlook. Therefore, leading chemical companies have taken a stance to increase product prices, and even arranged for the price increase in August.

Kuraray: Starting from August 1, the company's prices for all grades of SEPTON™, HYBRAR™ hydrogenated styrene elastomers and TU polymers will be increased globally by USD 0.33/lb (approximately RMB 2,138/ton).

AOC (Aliancys): Starting from August 1, the price of all grades of vinyl ester resins in the Americas will increase by US$0.14/lb (about 1985 yuan/ton).

Germany's ORION (formerly Evonik Degussa): From August 1st, the company's rubber carbon black price will be increased by 130 USD/ton (approximately RMB 841/ton).

DENKA: Due to the increase in the cost of raw materials such as polystyrene, the company decided to increase the price of some polystyrene products by 27 yen/kg (approximately 1,572 yuan/ton) from August 1.

JSP Co., Ltd.: Starting from August 1, the selling price of expanded polystyrene sheet (PSP) will be increased by 27 yen/kg (approximately 1,576 yuan/ton) or more.

Cabot: Starting from August 1, Cabot Norit activated carbon company will increase the price of all activated carbon products globally by 10%-20%.

Kansai Paint Co., Ltd.: From August 1st, industrial coatings will increase by 15-25%, curing agent 30-40%, and thinner 15-20%; general (construction, anti-corrosion, automobile maintenance) coatings will increase by 10 -20%, the thinner will be increased by 15-20%; the freight will be increased by 10%-15%.

Tiger Polymers Co., Ltd.: Will increase the price of the company's products for products including resin hoses, rubber sheets, and extruded products. The price will increase by more than 20% from August 1st.

Mitsubishi Chemical: For the biaxially stretched polystyrene sheet (OPS) "Santock" and "soft and transparent", the price will be increased from the delivery part on August 1, and the revision rate is 27 yen/kg (about 1574 yuan/ton) the above.

Domestic chemical raw materials keep up

Under the leadership of leading chemical companies, the domestic chemical product market is reappearing, with butadiene rising by 1,600 yuan/ton, propylene glycol by 1,133 yuan/ton, and dimethyl carbonate by 1,134 yuan/ton, nearly a hundred kinds Chemical raw materials are rising rapidly, rising more than 1,000 yuan/ton in a week, and the atmosphere is extremely hot.

Bisphenol A was quoted at RMB 22,800/ton, an increase of RMB 1,760/ton from the previous week, or 8.37%. Some companies offer up to 24,000 yuan/ton.

Maleic anhydride was quoted at RMB 11,500/ton, an increase of RMB 1,550/ton from the previous week, or 15.58%.

DMF quoted at RMB 12,450/ton, an increase of RMB 1516.67/ton from the previous week, an increase of 13.87%.

Melamine was quoted at RMB 12,200/ton, an increase of RMB 1,366.67/ton, or 12.62%, from the previous week.

Butylene glycol was quoted at RMB 19,275/ton, an increase of RMB 1,200/ton from the previous week, or 6.64%.

Liquid epoxy resin was quoted at RMB 27,300/ton, an increase of RMB 1,200/ton or 4.6% from the previous week. Some companies have quoted as high as 30,000 yuan/ton.

Adipic acid was quoted at RMB 11,060/ton, an increase of RMB 1,100/ton from the previous week, an increase of 11.04%.

Propylene oxide was quoted at 16,433.33 yuan/ton, an increase of 1,100 yuan/ton or 7.17% from the previous week.

Epichlorohydrin is quoted at 14233.33 yuan/ton, an increase of 1066.66 yuan/ton or 8.1% from the previous week. Some companies have quoted as high as 15,000 yuan/ton.

Lithium iron phosphate was quoted at 51,000 yuan/ton, an increase of 1,000 yuan/ton or 2% from the previous week.

List of price changes of some chemical raw materials in the past week

(Unit: Yuan/Ton)

(The above data comes from the information center, if there is a discrepancy, please refer to the actual data!)

Release liquidity to replace 4 trillion MLF, can 1 trillion funds "fill the gap"

The central bank lowered its RRR and released 1 trillion yuan of funds. In theory, it is good for the stock market, bond market, and property market. The amount of money that banks can use to lend has increased and become “cheaper”. It is also a major benefit, but there are also some worries about the logic behind it. The central bank pointed out that part of the released funds will be used by financial institutions to repay the maturing medium-term loan facility (MLF), and part of the funds will be used by financial institutions to make up for the liquidity gap caused by the peak of the tax period in mid-to-late July. From this point of view, the funds released by the RRR cut and flowing into the market are very limited, which is also the reason for the very limited credit easing this time.

In other words, banks need money to repay the Mid-term Lending Facility (MLF). For example, on July 15 when the central bank officially lowered the RRR, 400 billion MLF actually expired. These MLFs were brought during the epidemic last year. For example, the one-year MLF launched in July last year is now due to be recycled. In addition, there will be 700 billion MLF to be repaid in August, and there will be more than 3 trillion to be repaid from September to December. This time the RRR cut is one trillion, and there will be 40,000 to be repaid in the second half of the year. Billion.