Market review: last week, the chemical companies gain 3.21% The CSI 300 Rose 1.80% And chemical stocks outperform over Shanghai and Shenzhen 300 Index 1.41 Of a percentage point. So far this year, chemical sector rising 1.64%, CSI 300 index has risen 2.40%chemical plate running lost over CSI 300 index 0.76 Of a percentage point.
Industry opinion: " Along the way " Promoting investment in infrastructure construction in the Western provinces, benefiting as the core area will be given priority in the economic belt of the Silk Road in Xinjiang, explosive surge in consumer demand are expected to, we suggest civil explosion company peaks in Xinjiang layout technology, refined group, layout Gao Zhengmin explosion in Tibet. Snow technology company located in Xinjiang, is the leading enterprises of industrial explosive in Xinjiang is expected to benefit priority countries " along the road " policy. Elegant group has become explosive research, production and service the entire value chain of distribution, blasting services and form layout throughout Sichuan, Xinjiang, Inner Mongolia, Yunnan, Hubei, Fujian, Guizhou, Shanxi, Liaoning and other areas. Gao Zhengmin burst is the current Tibet Autonomous Region, a handful of production, sales, distribution and blasting services for the industrial explosive enterprise, has built an annual production capacity of 1.2 tons of powder emulsion explosive production line,2500 tons of porous granular ANFO and 2500 tonnes of plastic explosives.
Ethylene oxide prices 300-500 / Tons of featured oak shares. Last week PetroChina and Sinopec up 300-500 Yuan / ton, up 3%-5%, the price of ethylene oxide for the second time after the Spring Festival. Ethylene oxide prices mainly because 1) vinyl raw material price increases,CFR Southeast Asia and Northeast Asia respectively for 1100 $ / ton 1285 dollars / ton, costs drive epoxy propane prices ; 2) currently the ethylene glycol prices 8059 Yuan / ton, Ethylene glycol prices remain high, causing cogeneration reduces the amount of ethylene oxide supply. We believe that some manufacturers such as Yangtze petrochemical quarter maintenance, ethylene oxide supply will continue to decrease, while downstream of ethylene oxide monomer for the production of poly carboxylic acid water reducing agent of polyether, as infrastructure real estate recovery, and raw materials needs are expected to increase steadily, will promote ethylene oxide prices continue to rise. We recommend the greatest flexibility of ethylene oxide of ocker shares. Company EO current production capacity 20 tons / year ethylene oxide price spreads on 100 Yuan / ton,EPS Thickness 0.29 Yuan.
Industry recommended rating. We believe that the Ministry of chemical industry benefit from downstream application-driven, supply contraction accelerated and the industry itself, industry profitability is expected to improve, the industry " recommended " rating.
Risk warning: relevant policies fall short of expectations ; Industry competition risk ; Project progress than expected.