Chemicals: Propylene oxide prices rebound

R22 prices continue to rise. Last week, the price of R22 rose 9.52%. Last week, the price of domestic refrigerant R22 continued to rise at a high level, the supply side was stable, and terminal air conditioners were still in the peak season. The business mentality was firm and bullish on the market outlook. Due to restrictions on production quotas and sluggish sales of by-products**, R22’s main manufacturers started to maintain medium-to-low loads, and the market’s supply was in short supply. The downstream demand for R22 is still acceptable. Although the prices are high, the merchants still get the goods on demand. It is expected that the price of R22 will still have an upward trend, but the space is expected to be small.

Dichloromethane prices continue to rise. The price of methylene chloride rose by 10.00% in the previous week. Last week, the methylene chloride sharply increased, raw materials ** strong upward support, merchants strong price mentality, plus ** into the wheel repair period, individual manufacturers chloride device continue to check, the supply side continues to tighten, the manufacturers pull up The intention is positive and bullish on the market outlook. Individual manufacturers of methane chloride are still under overhaul. The load of other manufacturers is also maintained at medium and high levels. The industry inventory is low and the supply of goods in circulation is tight. It is expected that the market price will continue to rise in the near future.

Propylene oxide prices rebounded. The price of propylene oxide rose by 7.76% last week. Last week, domestic PO prices increased by more than 1,000 yuan/ton, PO manufacturers shipped smoothly, and the market supply was slightly tight.

Analysis of the reasons for this round of PO price increases are: First, due to Zhenhai Refining and Chemicals, Shandong Xinyue, Shida Shenghua and other devices stop maintenance; Second, due to Jishen device temporarily uncirculated market; Third, due to a slight rebound in propylene, ** high prices run. However, considering that there are a large number of imported PO sources in the East China Port, consider that Kyrgyzstan may be put into operation at any time. It is expected that the price of domestic PO will continue to rise in the near future, but not much.

Glyphosate prices continue to fall. The glyphosate price fell by 4.80% in the previous week. Glyphosate market remained weak last week. The mainstream price of glyphosate was lowered to 3-3.10 yuan per ton, and the mainstream offer was downgraded to 3.2-3.35 yuan per ton. After the cold winter of 2009-2010, the market concentration of glyphosate was gradually mentioned. The output of mainstream companies accounted for approximately 70-90% of the total; environmental protection is a slow process. Under the current market situation, manufacturers can no longer be as comfortable as ever. Emissions of the three wastes, but also have to observe the implementation of the policy. In the short term, the market of glyphosate can hardly be improved. Due to the gradual loosening of supply in the upstream glycine market, the price of glyphosate continues to fall.

Last week, prices of chemical products remained flat. Of the 118 chemical products we track, the price fell last week to 27, the price rose to 28, unchanged to 63, last week, the chemical product prices were flat; on a monthly basis, the price increases products The number was 38 and the number fell to 53. The recent shift in the price of chemical products was mainly due to the fact that although the chemical industry is in the peak season, the demand is still relatively poor.

Focus on R22 and PO trading opportunities. R22 price increases are driven by many factors, including capacity control and declining operating rates, control of ODS sales quotas, downstream demand season, and cost increases. In the short term, the price increase may continue, and promote the company's share price to rise. However, due to the serious overcapacity of other refrigerant products, such as R125, and the weak demand side support, the price transmission logic is unreasonable, and R22 price increases have a relatively small impact on the actual performance of listed companies. Therefore, caution is mainly recommended.