Seize the downstream chemical industry trends

Phosphorus chemical industry will gradually recover. Since the beginning of drought once every hundred years by the Southwestern influence, power supply lead to the majority of yellow phosphorus production shutdown southwest, thus promoting the phosphorus prices. In the second quarter, driven by higher prices of yellow phosphorus, phosphorus chemical products prices may still rise.

Soda ash industry, the economy will slowly improve degree. Access to 10 years, soda downstream output growth rose rapidly, demand for soda ash has formed on some support, which led the soda ash prices. Into the second quarter, we believe the downstream industry will enter a stable growth stage, the soda ash industry, the economy will show a degree of slow recovery trend.

Chlor-alkali prices up little space. PVC prices have been present at a relatively high position in the downstream regulation of the real estate industry is facing pressure, and excess industry capacity in severe circumstances, PVC prices rose in the second quarter is unlikely, and perhaps even a certain extent callback.

Polyurethane industry, focusing on the needs of new growth. As new projects continue to put into production, China's MDI and TDI overcapacity will become a reality, the future of the industry is facing the pressure of oversupply. Now, the conventional downstream products has driven demand for MDI was tired, not much room for traditional demand growth.

In China, building energy efficiency in recent years been promoting the program will create new demand by point, the future need to focus on building energy demand pull effect on the MDI.

Silicone industry is still vast room for development. Although organic silicon monomer facing the pressure of excess capacity, but the end products of organic silicon wide range of applications, there are some domestic supply shortfall, and continuously upgrade the quality of domestic products, there is a trend to replace imported products. The future of the silicone industry, especially in the downstream rubber industry is still vast room for development, it is long-term investment.

Carbon black industry, the economy has been increasing. By the downstream impact of the rapid development of the automotive industry, carbon black industry has also ushered in a good development opportunity. Second-quarter auto production and sales will remain a fast growing trend, which will boost the economy upstream carbon black industry has been increasing.

Chemical fiber industry, focusing on sub-sectors spandex. As the domestic textile and apparel industry and external demand continued to pick up, led the upstream chemical industry, the rapid rebound. At present, some chemical products prices have almost reached the previous high and even, not much room for future price increases, while the polyurethane product prices rose in 2009 is relatively small, less new capacity coupled with the last two years, prices are still higher than big up space in the second quarter we focus on the sub-sector investment opportunities in spandex.