Polyurethane Industry: It Will Still Maintain High Landscape Quality.

With the approval of the China Securities Regulatory Commission in July 16th, the application of 32 million shares of A shares of Yantai spandex Limited by Share Ltd was born, and another listed company in the polyurethane industry will be born.

At present, the performance of polyurethane industry listed companies such as Yantai Wanhua, Jiangshan chemical industry, Shanxi three dimensional, Hua Lu Heng Sheng, LAN-STAR cleaning, Cangzhou chemical industry has been stable.

According to the annual report released by Yantai Wanhua 12 Et in July, the company's business performance in the first half of 2007 has risen sharply. Net profit has reached 606 million yuan, up 94.21% over the same period last year: Shanxi's three dimensional annual report released in July 16th also showed that the company's income increased by 179 million in the first half of.2007, and its net profit was 179 million yuan, up by 223% over the same period.

The coming of Yantai spandex will give people full expectation for the future development of polyurethane industry.

MDl, TDl, BD0, DMF, PrI 'NEG are all important raw materials for polyurethane production.

The second half of 2007.

It is expected that raw materials for polyurethane production will still be in short supply.

On the MDl side, the Asia Pacific region has been the fastest growing region of global MDI demand in recent years. China is among the fastest growing countries, with an average annual growth rate of over 20%.

Although Shanghai's 240 thousand tons / year MDl plant will resume production in the second half of the year, the market supply will increase significantly. However, judging from the current market supply and demand situation, domestic MDl is still in short supply.

In particular, the rapid development of the spandex industry and the implementation of building insulation standards make the demand for MDl still maintain a high growth trend.

Therefore, the price of MDl will decrease in the second half of the year, but the rate of decline will not be great.

At present, China has not yet entered the era of mass consumption of polyurethane.

For example, China's polyurethane shoes are mainly exported, and domestic consumption accounts for only a small amount.

China produces 800 million pairs of polyurethane shoes every year, and its domestic consumption is less than two hundred million pairs.

According to the "energy saving medium and long term special plan" promulgated before, by 2010, China's urban construction reached the design standard of 65% energy saving, and a few large cities such as Beijing and Tianjin took the lead in implementing the 65% energy conservation standard: by 2020, the northern and coastal developed areas and mega cities have achieved 65% targets of building energy efficiency, and most of the existing buildings have completed energy saving pformation. In 2006, the guidelines for the application of polyurethane building energy saving were launched in 2006, and the standards were popularized in 2007.

This policy will bring tremendous opportunities for the development of the polyurethane industry. According to the China Petroleum and Chemical Industry Association, in view of the demand for energy saving, the demand for domestic MDl will reach more than 1 million tons in 2011.

Therefore, the MDl market will continue to maintain a high degree of popularity in the future, and Yantai Wanhua, a related listed company, will continue to benefit.

TDl aspect. Although the explosion of the Cangzhou Da Hua TDl plant in May this year has had a certain impact on the market in the short term. This makes the market price rise, but because its 30 thousand ton capacity accounts for only about 8% of the domestic demand. The impact on the domestic market supply relationship is limited. The current market impact is mainly psychological. We expect that the price in the future market will still be mainly affected by the supply and demand relationship, because the overall market supply is tight, and the demand is relatively stable, the price will remain the current level in the second half of the year.

For the DMF market, Hua Lu Heng Sheng has built a 80 thousand ton / year DMF production line in the second quarter. The total DMF capacity of the company has reached 230 thousand tons / year, making it the largest DMF producer in the world.

In addition, Jiangshan chemical industry announced in early June this year that it plans to build 200 thousand tons / year DMF and supporting methylamine and ammonia plant in Inner Mongolia.

Although the domestic DMF industry is facing the situation of overcapacity.

In the second half of the year, the market will still be under the pressure of oversupply. But in the context of global DMF industry shifting to China, DMF producers, represented by Hua Lu Heng Sheng, with production cost advantages and multi product lines, will continue to develop well and are expected to make greater breakthroughs in the market.

The price of BD0 has experienced a decline. The recent market is relatively weak.

8, in September, the main BD0 manufacturers will continue to overhaul.

In the second half of 2007, there will be 33 thousand tons of spandex capacity expansion in China. The PBT project of Changchun chemical and star materials in Taiwan will also increase the demand for BD0.

Therefore, faced with the recovery of downstream demand, there is expected to be a tight supply situation. In the context of cost reduction, the BD0 market will rebound.

But in the long run, the entire BDO industry will still face the pressure of excessive expansion of capacity.

Affected by tight supply, PTMEG prices continued to rise slightly.

Although spandex needs are in the off-season, spandex manufacturers still maintain high load operation.

With the launch of new spandex production capacity in the second half of this year, the supply of PTMEG will continue to be tight.

Because demand is light, the market of spandex silk will be relatively weak.

In general, the polyurethane industry continued to thrive in the first half of 2007. Especially in May 19th, the Ministry of Construction issued the "guidelines on polyurethane rigid foam external wall insulation engineering". In May 19th, the building insulation and energy saving industry is expected to produce nearly 200 billion yuan a year. In the long run, polyurethane is the best thermal insulation material. With the development of China's automobile industry and the substitution of polyurethane materials for traditional materials such as PVC, the production enterprises of polyurethane industry chain will have a rare opportunity for development. The growth of demand in this field will be worth looking forward to for a long time.

In the coming years, the trend of the polyamine industry is promising.

At the same time, we should also see that the current high oil prices are beneficial to the natural gas extraction industry and the processing industry.

However, it will bring the high price of raw materials in the middle reaches of oil, increase the cost of synthetic materials and processing industry, and affect the benefits of downstream polyurethane products. Therefore, polyurethane enterprises should also be prepared to face the impact of high oil prices.

In addition, for the high growth polyurethane industry, we must be vigilant, improve the threshold of the industry, prevent overinvestment and low-level duplication of construction.

Comprehensive analysis, expected in the second half of 2007, the polyurethane industry will remain high.