reported relevant statistics, since the end of September two months, HuJiao main contract rose from 13000 points to more than 16 thousand points, the cumulative increase of nearly 25%, external capital inflows continued, the market to do more enthusiasm.

According to the latest ANRPC report is expected this year, natural rubber production increased slightly by 0.4%, which is since 2014, down 1.9%, an increase of 0.8% in 2015, to maintain the downturn trend for third consecutive years, while the demand is expected this year consumption increased by 4.5%, natural rubber oversupply situation will be effectively alleviated this year.

Since the beginning of 2011, prices continued to fall causing a major reshuffle of the industry chain, taking into account the rubber price fluctuation cycle of about six years, long-term HuJiao is expected to lead to a new round of spring.

Warehouse pressure decreases, the cash premium narrowed sharply

Last week, the downstream polypropylene industry overall operating rate of 66.3%. Among them, Subian industry operating rate was 68%, CO injection molding industry operating rate was 67%, BOPP industry operating rate of 64%. The high price of raw materials, increased costs, reduced profits, and terminal delivery, resulting in plastic industry operating rate decreased slightly over the previous week. Overall, polypropylene industry downstream operating rate still.

Finally, the petrochemical manufacturers inventory low, delivery pressure

At the same time, taking into account the upstream raw material crude oil price upside expectations, PP 1701 contract rebound may exist, you can try more than a single intervention in the vicinity of the 20 day moving average, a target to 9000 yuan / ton.

Last week, the main part of polypropylene production enterprises and dealers inventory rose slightly. According to statistics, the main petrochemical factory inventories rose by 0.45% over the previous week, major petrochemical and middlemen stock over the previous week rose 2.5%.

Polypropylene market to digest the early gains, downstream enterprises aversion to supply of high, just need to purchase, delivery will is not strong, resulting in petrochemical inventory consumption slowdown. At the same time, Xinjiang Shenhua and the co-founder of transit arriving in North China, East China market supply.

In the case of demand unchanged, is expected this week, petrochemical stocks rose slightly further. However, in view of the current situation, petrochemical stocks remained at a low level.

Furthermore, the downstream industry operating rate still

The relevant requirements of license “Shijiazhuang sword cut pollution action plan” and the municipal government, decided on the city’s industrial enterprises, especially the implementation of strict control measures in key industries of pharmacy, cement, casting, steel, coal, coking and boiler etc.. The scheduling order have taken strong measures for each industry, in order to prevent pollution, pharmaceutical companies are no exception, was asked to stop all. The implementation time from November 17, 2016 to December 31, 2016 to dispatch.

At present, the glyphosate process distribution, production capacity of 70% glycine route, Hebei and Shijiazhuang as the main route of raw materials for the production of glycine and paraformaldehyde are the most important suppliers, accounted for more than 50% and more than 60%.

According to reliable sources, Hebei Donghua’s two main glycine Donghua Jinlong supplier (90 thousand tons), Donghua Jiheng (90 thousand tons) has been discontinued, is expected this week, there will be 200 thousand tons glycine Production capacity or limited production, the current market daily glycine The supply fell to 530 tons, Shandong area glycine The supply is also affected by environmental factors, yields continued to decline, with the daily supply of 1500 tons to 1600 tons compared shrunk 65%. glycine The chemical raw materials, the previous week has increased 20%, to 11000 ~ 12000/ tons on the basis of price is expected to continue to rise.

Paraformaldehyde is also facing the same pressure on prices

Because of the early glyphosate prices continue to decline, traders in the hands of supply is already low, individual plant has a small amount of inventory, along with the traditional winter season coming round, glyphosate prices from 21 thousand yuan / ton in early November, 500 dollars a week the price increases, has arrived at the level of 23 thousand yuan / ton.

North China because of environmental problems in the large heavy snow shut down, transport and logistics, the upstream raw material supply of glyphosate, glyphosate prices continue to rise.

Environmental limit or become the motivation of glyphosate roseIn November 17th, Hebei province atmospheric office issued a “air pollution prevention 2 scheduling order”, the province decided to complete the annual objectives and tasks for prevention and control of atmospheric pollution, lagging behind the progress of recent serious pollution of the city, the implementation of 2 key scheduling, scheduling order involving Shijiazhuang, Baoding, Cangzhou, Hengshui, Dingzhou, Xinji City, 6.

Subsequently, the Shijiazhuang city counties (city) district government and the circulation of Chemical Industry Park Management Committee have received a copy of the “Shijiazhuang City air pollution control scheduling order”. The scheduling order that since mid September in Shijiazhuang city for a number of heavy pollution weather, qualifying going backwards in the national 71 key city, the completion of the annual PM2.5 concentration decreased 10% of the assessment task extremely difficult.