With the global financial crisis, chemical industry lacks of downstream demand and operating rate of enterprises. Economic recovery, especially the continuous heating of real estate and automotive market to, effectively promote the enhancement of the demand for upstream products. Meanwhile, fine chemicals market is expected to usher in a rise.
Due to technical barriers, fine chemicals have a higher access threshold for new entrants. It also leads to the industry monopoly, its bargaining power is relatively high. The production companies can be based on actual market demand to control the output. 2011 continued downturn in demand, as demand has picked up the policy to stimulate the effect of gradually emerging economic recovery is expected to contribute to the industry into the fast recovery phase.
Polyurethane (MDI) is a typical chemical product in the industry. It has the flexibility of rubber, plastic strength and excellent processing characteristics, widely used in household appliances and insulation materials. By the home appliances to the countryside, home appliance subsidy policy support, the home appliance industry, the continuing hot sales scene, which also directly stimulates the upgrading of the appliance demand for raw materials, especially the refrigerator industry demand for MDI in the first quarter there was a small peak. With the manifestation of economic recovery and the effects of policies, the appliance industry's high growth is expected to bring new development opportunities to MDI lead citrate.
With the continued strong sales of the real estate market, real estate inventory levels significantly reduced, which directly stimulate the real estate developers get to build the will of the House. With the growth of the new construction area, the market greatly increased the demand for the production of doors and windows, glass, energy-saving materials, such as profiles, which directly promote the increase of PVC consumption is expected to promote the upgrading of the chemical industry boom.
According to statistics, 2011 to August housing construction area of the national real estate development enterprises was 2.629 billion square meters, an increase of 13.5%; housing construction area of 631 million square meters; 292 million square meters of housing area, an increase of 25.1%. With the construction of the tide of the real estate market is filled with the timing of the rapid recovery of the upstream chemical industry is approaching.
With the policy implication influence of car to the countryside, China’s auto sales market remains hot. According to the statistics of the association of automobile manufacturers, in January to June of 2011, China's auto production and sales were 5.9908 million and 6.0988 million. The increase rates are 15.22% and 17.69%. National production car in August 1,140,700, an increase of 86.10% per month of six in a row over one million. Automobile production and sales in the second half slightly higher than the first half of the whole annual sales exceeded 12 million over the 2009 to 2012 average annual growth target of 10%. Benefit from continious selling of the car, a substantial increase in market demand for glass lead salicylate, which also indirectly promote the upgrading of the soda ash demand for chemicals and help to promote the rapid warming of the chemical industry.
By the impacts of market supply, demand and commodity prices continued to rise, MDI, TDI,, DMF, and other products prices are expected to become much stronger. MDI manufacturers to take the recent price reduction for measures to promote the MDI price continued to raise, the prices into the rising channel. With the further rise of the market demand for MDI prices are expected to increase rapidly. DMF manufacturer’s inventory digestion is better and a lot of stocking, DMF, prices are also expected to further increase with the improvement of commencement of construction. The economic recovery increased demand, coupled with a certain degree of inflation expectations, to promote the chemical product prices.
In September of 2011, exports of plastic products ended its decreasing and began to bottom out. Comparing to the total export volume in August, it increased by 43,749 tons. The increasing rate is 7.83%. The responsible person of a plastics company in Taizhou, Zhejiang says that: now it has entered to the plastics production season. There are many orders for enterprises to catch the processing of production. Many companies are actively adjusting their industrial structures and producing the market marketable products. Product occupies a place in the high-end market with sales climbing. Most business owners say that the market expansion is obliviously for all to see.Source:http://www.mhcfm.com
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